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Not legal advice. Laws change, verify current rules with your installation JAG office, the Virginia Department of Taxation, Virginia Department of Education, or a licensed Virginia attorney before making financial or legal decisions based on this guide. Confirm the current Military Benefits Subtraction cap at tax.virginia.gov. Last reviewed September 2026.
01 · Military Pay
Virginia taxes military pay for residents and allows a capped Military Benefits Subtraction for retirement and related benefits (up to $40,000 for tax year 2025 and later, CPI-adjusted beginning 2026).
Virginia taxes military base pay for servicemembers who are legal residents of Virginia, regardless of where they are stationed. If you are a Virginia domiciliary stationed in Virginia, your entire military pay is subject to VA income tax. If stationed outside Virginia, your pay is still subject to VA tax unless you change domicile, being stationed elsewhere does not create a VA exemption on its own.
Virginia's Military Benefits Subtraction is capped, not a full exemption. Eligible military benefits may be subtracted up to $20,000 for tax year 2023, $30,000 for 2024, and $40,000 for tax year 2025 and later. Beginning in tax year 2026, the $40,000 amount is adjusted annually for CPI-U. Benefits above the cap remain taxable. Eligible benefits include military retirement pay, certain Survivor Benefit Plan payments, and other qualifying military benefits included in federal income. Claim on Schedule ADJ of Virginia Form 760. Confirm current amounts at tax.virginia.gov.
VA disability compensation is fully exempt from Virginia state income tax. This is a federal-level exemption that Virginia honors automatically, no separate form is required. This applies to all ratings including partial disability compensation.
Virginia does not offer a broad exemption for Guard and Reserve pay. Pay received during state active duty (called up by the Governor) is exempt from Virginia income tax. Pay for federal training periods (AT, drills) remains taxable. Guard and Reserve members should consult Virginia Department of Taxation Publication 102.
Under the Veterans Benefits and Transition Act of 2018, military spouses who maintain domicile in another state do not owe Virginia income tax on wages earned in Virginia while accompanying their servicemember on military orders. File Virginia Form 763-S to claim the exemption and obtain a refund if VA taxes were withheld.
SBP annuity payments to surviving spouses are included in the Military Benefits Subtraction and count toward the same annual dollar cap as military retirement. Amounts above the cap remain taxable. Confirm current treatment with Virginia Tax before filing.
Do this next. File Virginia Form 760 with Schedule ADJ to claim the military retirement subtraction. Military spouses maintaining out-of-state domicile file Form 763-S. Contact the Virginia Department of Taxation at (804) 367-8031 or tax.virginia.gov for military-specific guidance.
02 · Property Tax Exemptions
Virginia's 100% disabled veteran exemption is constitutional, enshrined in the Virginia Constitution since 2011. Counties administer it, but the protection is strong statewide.
Virginia veterans rated 100% permanently and totally (P&T) disabled by the VA receive a full real property tax exemption on their primary residence. This exemption was written into the Virginia Constitution (Article X, Section 6-A) in 2011, it cannot be eliminated by a simple legislative vote. The exemption applies to the home and up to one acre of land. Apply through your county or city commissioner of the revenue.
The surviving spouse of a 100% P&T disabled veteran retains the full property tax exemption as long as they remain unmarried and continue to occupy the property as their primary residence. This protection passes automatically, the surviving spouse does not need to re-qualify with a new VA rating.
York County (adjacent to Fort Eustis / JB Langley-Eustis) offers a personal property tax rate reduction for active duty servicemembers on a vehicle used primarily for commuting. Contact York County Commissioner of Revenue at (757) 890-3381. Rates vary by tax year and county budget cycle.
Virginia Beach and Chesapeake (serving NAS Oceana, JEB Little Creek, NSN) apply personal property tax to vehicles. Virginia Beach offers a partial exemption for active duty non-residents who maintain home-state registration. Chesapeake charges full personal property tax on VA-registered vehicles. Check with each city's Commissioner of Revenue annually, rates change.
Veterans with a 100% P&T disability rating also receive an exemption from the local personal property tax (car tax) on one vehicle. This is separate from the real property tax exemption and must be applied for at your local Commissioner of Revenue with your VA award letter.
Do this next. Apply for the 100% P&T property tax exemption at your locality's Commissioner of Revenue or Assessor's office. Bring your VA award letter showing 100% P&T, DD-214, and proof of primary residence. The application is typically processed within 30 to 60 days of receipt.
03 · Vehicle Registration
Virginia has SCRA protections for vehicle registration and special provisions for 100% disabled veterans, but the state's personal property tax (car tax) is a major consideration for military families.
Active duty servicemembers are not required to register their vehicles in Virginia while stationed here under SCRA. You may keep home-state plates and registration. Virginia DMV cannot require registration change based solely on military orders. Keep a copy of current orders in your vehicle at all times.
Veterans with a 100% P&T disability rating pay no vehicle registration fee for one vehicle in Virginia. Contact the Virginia DMV at (804) 497-7100 or dmvNOW.com. Bring your VA award letter. Free specialty disabled veteran license plates are also available.
Virginia localities assess an annual personal property tax on vehicles registered in Virginia. SCRA does not exempt servicemembers from this tax if they have registered their vehicle in Virginia. This is one of the most common financial surprises for military families new to the Commonwealth. If you keep home-state registration under SCRA, you avoid this tax.
Virginia driver's licenses for servicemembers and their dependents stationed outside Virginia do not expire while on active duty orders. The license is valid for up to 90 days after separation or return. When you PCS back to Virginia, you have 60 days to renew.
Military spouses may maintain their home-state vehicle registration and driver's license while residing in Virginia due to military orders. They are not required to obtain a Virginia license or VA plates. This applies regardless of how long they have lived in Virginia.
Do this next. The Virginia car tax (personal property tax) is administered by your city or county, not the state. Rates range from roughly $3.50 to $5.00 per $100 of assessed value. If you keep home-state registration under SCRA, you are not subject to this tax. Consult your local Commissioner of Revenue.
04 · Military Spouse Employment
Virginia has enacted strong military spouse licensing reciprocity laws, including the Military Spouse JD Act and 60-day license transfer timelines.
Virginia Code § 54.1-119 requires licensing boards to issue a license to a military spouse holding a valid equivalent license from another state within 60 days of receiving a complete application. Covered professions include nursing, real estate, cosmetology, mental health counseling, physical therapy, teaching, and dozens of others. The applicant must be in good standing in their prior state.
Virginia offers a special provision for military spouse attorneys. A licensed attorney from another state may be admitted to the Virginia Bar under a military spouse rule without taking the Virginia Bar Exam, provided they have been licensed and in good standing for at least three of the last five years. This is one of the most forward-leaning bar admission exceptions in the country for military spouses.
While a full license application is pending (within the 60-day window), Virginia boards may issue a temporary authorization letter allowing the military spouse to practice in their licensed profession. This prevents income gaps during the transfer process. Request explicitly, it is not automatically issued with the application.
Virginia law (§ 60.2-619) provides that a military spouse who voluntarily leaves employment to accompany their servicemember on a PCS move is eligible for Virginia unemployment benefits. They are not considered to have voluntarily quit without good cause. Must have worked in Virginia prior to the PCS departure.
A military spouse who maintains domicile in another state and works remotely for an out-of-state employer while living in Virginia on military orders may be exempt from Virginia income tax on those wages. File Virginia Form 763-S. Virginia-source income (clients, employers physically in Virginia) may still be taxable, consult a military-aware CPA.
Do this next. Contact the Virginia Department of Professional and Occupational Regulation (DPOR) at (804) 367-8500 for license-specific reciprocity requirements. The Virginia Board of Nursing (804-367-4515) and Virginia Real Estate Board (804-367-8526) each have dedicated reciprocity processes. Submit applications with orders, out-of-state license copy, and verification of good standing.
05 · SCRA
Virginia courts and landlords are required to honor all SCRA protections. Virginia has one of the largest JAG Legal Assistance networks in the country given the density of installations.
You can terminate any Virginia residential lease with 30 days' written notice upon receiving PCS orders or a deployment of 90+ days. Deliver written notice and a copy of orders to the landlord. Termination is effective 30 days after the next rent due date. Virginia landlords cannot charge early termination fees to servicemembers exercising SCRA rights.
Any debt, mortgage, car loan, credit card, student loan, taken on before entering active duty must be reduced to 6% interest upon written request. Submit written notice with a copy of orders. The cap retroactively applies to interest; excess above 6% is forgiven, not deferred. Virginia courts consistently enforce this provision.
Virginia courts cannot foreclose on a servicemember's primary residence during active duty without a court order. The protection extends for 1 year after separation. Given Virginia's high concentration of military homeowners (Hampton Roads alone has tens of thousands of military mortgages), JAG offices here are highly experienced with foreclosure stays.
Landlords cannot evict an active duty servicemember or their family from a primary residence without a court order. The eviction protection applies when rent is under $10,542.60/month (2026, adjusted annually for CPI). Virginia Beach, Norfolk, and Hampton Roads area courts are experienced with military eviction stays.
Virginia courts must grant at least a 90-day stay of civil proceedings when a servicemember cannot appear due to military duties. Courts cannot enter a default judgment against an active duty servicemember without a hearing and an appointed attorney to represent their interests.
Do this next. Every major Virginia installation has a JAG Legal Assistance Office. Naval Station Norfolk JAG: (757) 444-7854. Fort Belvoir JAG: (703) 805-2020. Quantico Legal: (703) 784-4333. JB Langley-Eustis Legal: (757) 764-5536. SCRA violations should be reported to JAG immediately, lenders and landlords in military-heavy Virginia markets are generally aware of the law.
06 · Education Benefits in Virginia
Virginia offers strong in-state tuition protections for military families and a dedicated Troops to Teachers program, with every major public university participating in Yellow Ribbon.
Virginia law (§ 23.1-502) grants immediate in-state tuition eligibility to active duty servicemembers stationed in Virginia, their spouses, and dependents. No 12-month waiting period. This applies to all Virginia public colleges and universities including Virginia, Virginia Tech, Old Dominion, William & Mary, GMU, and all 23 community colleges.
Virginia participates in the federal Troops to Teachers (TTT) program, which helps separating servicemembers transition into teaching careers. Virginia's program provides priority placement assistance, mentoring, and connections to Virginia school districts with high military family populations. Contact the Virginia Department of Education at (804) 225-2020.
Virginia has more Yellow Ribbon-participating schools than almost any other state, including University of Virginia, Georgetown (DC-adjacent), George Mason, Marymount University, and Liberty University. For 100% GI Bill eligibility, Yellow Ribbon schools cover tuition and fees beyond the state cap at no cost to you. Verify current participation at benefits.va.gov/GIBILL.
Virginia National Guard members may receive state tuition assistance through the Virginia National Guard Education Assistance Program. The program supplements federal MGIB-SR benefits and can provide near-full tuition coverage at Virginia public schools. Contact the Virginia National Guard Education Office at (804) 236-7820.
Dependent children who establish domicile in Virginia do not lose in-state tuition eligibility if their active duty parent PCSes out of Virginia. The dependent can continue to pay in-state rates at Virginia public universities if they maintain continuous enrollment. This is a significant protection for families whose children start college in Virginia before the parent PCSes.
Do this next. Each Virginia public university has a Veterans Services Office with a School Certifying Official (SCO). Old Dominion University (Norfolk/Hampton Roads) and George Mason University (Northern Virginia/Pentagon area) have particularly robust veteran and military family services programs due to their proximity to major installations.
07 · Private Schools
Virginia has an Education Improvement Scholarships Tax Credit for private schools and strong pending legislation, but does not yet have a universal ESA voucher program.
Virginia's Education Improvement Scholarships Tax Credits program (Va. Code § 58.1-439.25 et seq.) allows businesses and individuals to donate to approved scholarship foundations and receive a 65% state tax credit. The scholarship foundations then distribute funds to eligible K to 12 students for private school tuition. Military families who qualify financially may apply for scholarships through participating foundations, awards typically range from $500 to $4,500 per year. Income limits apply; contact the Virginia Department of Education for approved scholarship organizations.
As of mid-2026, Virginia does not have a universal Education Savings Account (ESA) voucher program. Multiple ESA bills have been introduced in the Virginia General Assembly, including proposals modeled after Arizona's universal ESA. These bills have passed one chamber but stalled in the other due to the closely divided legislature. Military family advocates (MCEC, NMFA) are actively lobbying for priority military family provisions in any future ESA bill. Monitor Virginia Legislative Information System (lis.virginia.gov) for bill status.
The EISTC scholarship program gives funding priority to students with disabilities, including those with IEPs or 504 plans. EFMP-enrolled military families whose child qualifies for special education should specifically request disability-priority scholarship applications from EISTC-approved foundations. Award amounts for students with disabilities are higher than general awards.
Virginia is a member of the Interstate Compact on Educational Opportunity for Military Children (MIC3). For public schools, this provides enrollment grace periods, immunization waivers, credit transfer protections, and sports eligibility protections. Many private schools near Virginia military installations informally honor MIC3 enrollment flexibility, ask the admissions office directly when presenting PCS orders.
Virginia Code § 22.1-254.1 allows homeschooling without requiring a certified teacher parent. Military families in the Hampton Roads, Northern Virginia, and Quantico corridors have access to a robust network of military-connected homeschool co-ops, hybrid schools (2 to 3 days on campus, balance at home), and virtual public school options through Virginia Virtual Academy (VAVA). VAVA is tuition-free for Virginia residents.
Bipartisan legislation pending in the Virginia General Assembly would require any private school accepting state scholarship tax credit funds to grant a priority enrollment window to military-connected children whose families have received PCS orders within 60 days. This bill mirrors successful legislation in other states and has support from Hampton Roads-area delegates representing large military populations.
Do this next. For the EISTC scholarship program, contact Virginia Department of Education at (804) 225-2020 or doe.virginia.gov for a list of approved scholarship foundations accepting applications. Northern Virginia and Hampton Roads both have private schools with established military family populations, call the admissions office with your PCS orders as early as possible.
08 · Voting
Virginia must honor your right to maintain home-state domicile and vote by absentee ballot. Virginia installations have Voting Assistance Officers who can help.
Being stationed in Virginia does not change your legal domicile. You may continue to vote in your home state via absentee ballot under UOCAVA. Submit a Federal Post Card Application (FPCA) at FVAP.gov. Your installation's Voting Assistance Officer (VAO) can help you complete and submit your FPCA.
If you want to vote in Virginia and claim it as your home state, register at vote.elections.virginia.gov. Consider that Virginia now has a top income tax rate of 5.75%, if your home state has no income tax (TX, FL, WA, etc.) it may not be financially advantageous to switch domicile to Virginia.
Military spouses may independently maintain domicile in any state they choose under VBTA 2018, it does not have to match the servicemember's. Virginia cannot force a spouse to establish Virginia domicile based on their presence in the Commonwealth.
Virginia accepts the FPCA as a combined registration and absentee ballot request. Ballots are sent electronically to overseas and deployed voters. Virginia accepts email and fax return of ballots from UOCAVA voters. Request your ballot at least 45 days before any election.
Do this next. Virginia installations all have assigned Voting Assistance Officers (VAOs). Your installation's chain of command or Family Support Center can connect you with your VAO. The Federal Voting Assistance Program at FVAP.gov is the authoritative resource for all domicile and absentee voting questions.
Call before it is urgent
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Free for military families
Every Virginia military installation has a School Liaison Officer on staff, free of charge. Call before orders drop to get ahead of enrollment deadlines.
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