FINANCIAL ADVANTAGE
Additional Benefits For Virginian Veterans
Virginia Veterans and their families may qualify for valuable state and federal benefits that can lower taxes, reduce higher-education costs, and make homeownership more affordable. Understanding the Virginia disabled Veteran benefits available to you—from property tax exemptions to family tuition assistance and VA home loans—can help you make the most of the benefits you’ve earned through military service.
Tax Relief
Property Tax Exemptions for Veterans in Virginia
- 100% permanently and totally disabled Veterans can receive a full real estate tax exemption. Virginia exempts the principal residence and generally up to one acre of land of a Veteran rated by the VA as 100% service-connected, permanent and total. Veterans rated below 100% who are compensated at the 100% rate because of individual unemployability and are rated permanent and total also qualify. Veterans apply through their local Commissioner of the Revenue.
- One vehicle can be exempt from local property taxes, too. A Veteran rated 100% service-connected, permanent and total may receive a local personal property tax exemption on one qualifying passenger vehicle or pickup/panel truck owned and used primarily by or for the Veteran. Unlike the real-estate exemption, this vehicle exemption ends upon the Veteran's death and does not transfer to a surviving spouse.
- Virginia allows eligible taxpayers to subtract up to $40,000 of qualifying military benefits from Virginia taxable income for tax year 2025 and later. This applies to qualifying military retirement and certain other taxable military benefits—not VA disability compensation that's already excluded from federal taxable income.
Family Tuition Assistance
Education Benefits for Virginia Veterans
- Spouses and children of qualifying disabled Veterans can receive significant education benefits. The Virginia Military Survivors and Dependents Education Program (VMSDEP) provides education benefits to eligible spouses and children of Veterans rated by the VA as totally and permanently disabled or at least 90% permanently disabled as a result of military service, provided the program's other eligibility requirements are met.
- VMSDEP also supports families affected by qualifying combat service. The program extends benefits to eligible spouses and children of qualifying service members who were killed in action, missing in action, taken prisoner, or became totally and permanently disabled or at least 90% permanently disabled as a direct result of covered military combat. Children generally must be ages 16 through 29 and admitted to a Virginia public college or university; additional domicile and tier requirements apply.
Home Financing
Home Loan Benefits for Eligible Veterans
- Eligible Virginia Veterans may be able to buy a home with no down payment. VA-backed purchase loans can be used to buy, build, or improve a primary residence and generally require no down payment when the sales price isn't higher than the appraised value. VA reports that nearly 90% of VA-backed home loans are made without a down payment.
- No monthly mortgage insurance can make homeownership more affordable. VA-backed purchase loans don't require monthly private mortgage insurance (PMI) or mortgage insurance premiums (MIP). They may also provide competitive rates and terms, fewer closing costs, and no penalty for paying the loan off early. Eligibility requires a VA Certificate of Eligibility and satisfaction of VA and lender credit, income, and occupancy requirements.
Sources
- Virginia Department of Veterans Services — Tax Exemptions
- Virginia Department of Veterans Services — Virginia Military Survivors and Dependents Education Program (VMSDEP)
- Virginia Department of Veterans Services — Education Benefits
- Virginia Tax — Military Benefits Subtraction FAQ
- U.S. Department of Veterans Affairs — VA-Backed Purchase Loans
- U.S. Department of Veterans Affairs — VA Home Loan Eligibility