Real Estate Tax Exemption
Real property tax exemption for certain veterans and their surviving spouses and surviving spouses of soldiers killed in action.
On November 2, 2010, the citizens of the Commonwealth of Virginia ratified an amendment adding Section 6-A to the Constitution of Virginia, providing for a real estate tax exemption for certain disabled veterans and their surviving spouses. It went into effect on January 1, 2011.
On November 4, 2014, the citizens of the Commonwealth of Virginia ratified an amendment to Section 6-A of the Constitution of Virginia, providing for a real estate tax exemption for certain surviving spouses of soldiers killed in action. It went into effect on January 1, 2015.
(a) Notwithstanding the provisions of Section 6, the General Assembly by general law, and within the restrictions and conditions prescribed therein, shall exempt from taxation the real property, including the joint real property of husband and wife, of any veteran who has been determined by the United States Department of Veterans Affairs or its successor agency pursuant to federal law to have a one hundred percent service-connected, permanent, and total disability, and who occupies the real property as his or her principal place of residence. The General Assembly shall also provide this exemption from taxation for real property owned by the surviving spouse of a veteran who was eligible for the exemption provided in this subdivision, so long as the surviving spouse does not remarry. This exemption applies to the surviving spouse’s principal place of residence without any restriction on the spouse’s moving to a different principal place of residence.
(b) Notwithstanding the provisions of Section 6, the General Assembly by general law, and within the restrictions and conditions prescribed therein, may exempt from taxation the real property of the surviving spouse of any member of the armed forces of the United States who was killed in action as determined by the United States Department of Defense, who occupies the real property as his or her principal place of residence. The exemption under this subdivision shall cease if the surviving spouse remarries and shall not be claimed thereafter. This exemption applies regardless of whether the spouse was killed in action prior to the effective date of this subdivision, but the exemption shall not be applicable for any period of time prior to the effective date. This exemption applies to the surviving spouse’s principal place of residence without any restriction on the spouse’s moving to a different principal place of residence and without any requirement that the spouse reside in the Commonwealth at the time of death of the member of the armed forces.
The Code of Virginia, Title 58.1., Chapter 32, Articles 2.3 and 2.4, provides specific requirements and directions related to the exemptions.
Veterans and surviving spouses must apply to their local Commissioner of the Revenue.
If the application is approved, localities will exempt from taxation:
- The dwelling that is the principal residence of the qualifying veteran and up to one acre of land (or more if an exemption for greater than one acre is provided to elderly and handicapped persons).
- Owned by a Veteran with a 100% service-connected, permanent and total disability, who is/was alive on or after Jan. 1, 2011
- Or the surviving spouse of such veterans, (§ 58.1-3219.5)
- Or the surviving spouse of any member of the United States armed forces who was killed in action, which includes the DOW designation. (§ 58.1-3219.9)
- Veterans rated at less than 100% but who the VA rates at 100% due to individual unemployability AND are rated “permanent and total” qualify for the exemption.
The exemption shall remain provided that the disabled veteran or surviving spouse:
- Occupies the real property as their principal place of residence;
- For surviving spouses, provided they do not remarry.
- As of July 1, 2019, surviving spouses of KIA/DOW and 100% disabled veterans are allowed to move and take the exemption with them.
*For surviving spouses of active duty KIA/DOW – the service member may have died in combat prior to 2015 when the constitutional amendment was enacted, however, they cannot claim the exemption prior to 2015.
- The updated regulations for 58.1-3219.5 were published in the VAC in July 2019
- RIS published the regulations for 58.1-3219.9 in the Spring of 2018.
The Policy & Guidelines for Commissioners of the Revenue and Other Assessing Officials for §§ 58.1-3219.5 and 58.1-3219.9 Revised 2023 was distributed to the Virginia Commissioners of the Revenue Association.
UPDATE: POSTED 03/28/2024: Virginia Code § 58.1-3219.7 grants the Department of Veterans Services (DVS) authority to promulgate rules and regulations governing the administration of the real property tax exemption for disabled veterans established by Article X, § 6-A of the Constitution of Virginia. Recently, it has come to DVS’s attention that information contained in certain DVS regulations and guidance on this exemption conflicts with the law governing the exemption. Specifically, subsection (E) of 1 VAC § 80-10-90 contains a limitation period that conflicts with Code § 58.1-3219.5, the statute implementing the exemption. Additionally, the Attorney General has issued an opinion (No. 16-060) concluding that this tax exemption is not subject to any limitations period. Instead, qualified disabled veterans or their surviving spouses are “entitled to enjoy that tax exemption, beginning on the date of the disability rating, including all prior years back to and including 2011,” when the tax exemption was enacted. Accordingly, DVS is initiating the regulatory process to repeal 1 VAC § 80-10-90(E) and is rescinding any guidance contrary to the OAG opinion.