The disabled veteran tax exemption Virginia offers is one of the best benefits in the state, and a lot of vets I work with don’t know it exists until I bring it up at closing. If you carry a 100% service-connected, total and permanent disability rating from the VA — or you’re rated at less than 100% but receive Total Disability Individual Unemployability (TDIU) — you pay zero real estate property tax on your primary residence in Virginia. Not a discount. Zero. Forever, as long as you live there.
I’m a Navy SWO veteran myself, and I’ve helped enough disabled vets buy homes in Hampton Roads to know that this benefit is the difference between affording the neighborhood you want and settling for less. On a $400,000 home in Chesapeake, that’s roughly $4,200 a year you keep. Over a 30-year mortgage, you’re looking at more than $125,000 in tax savings before any rate increases. Here’s how the disabled veteran tax exemption Virginia program works, who qualifies, and what to do at the local level to actually get it applied.
In This Article
What the Disabled Veteran Tax Exemption Virginia Actually Covers
The exemption is written into the Code of Virginia §58.1-3219.5. It came from a constitutional amendment voters passed in November 2010 (Article X, Section 6-A), and it took effect January 1, 2011. The law exempts qualifying veterans from real estate taxation on their principal residence and the land it sits on — typically up to one acre, though some localities allow more.
It does not exempt you from personal property tax on cars and boats. It does not exempt rental properties or second homes. It does not transfer to a vacation place down at the Outer Banks. The exemption attaches to one home — the one you live in as your primary residence — and it follows you if you sell that home and buy another in Virginia.
Who Qualifies
Three categories of veterans qualify. First, vets with a 100% service-connected, permanent and total disability rating from the U.S. Department of Veterans Affairs. The rating has to say “permanent and total” or “P&T” — not just 100%. A 100% temporary rating doesn’t count until it converts to permanent. You can verify your rating status on VA.gov or by pulling your benefits letter from the VA portal.
Second, vets receiving Total Disability Individual Unemployability (TDIU) compensation. TDIU pays at the 100% rate but doesn’t always come with a 100% schedular rating. Virginia treats TDIU recipients the same as 100% P&T for this exemption — that’s a 2020 change to the statute that picked up a lot of vets who’d been excluded.
Third, surviving spouses of qualifying veterans. If your spouse was a 100% P&T or TDIU veteran when they died, and you have not remarried, the exemption continues. As of 2019, the surviving spouse can sell the home and apply the exemption to a new principal residence in Virginia. Before that change, the surviving spouse was stuck in the original house. The 2024 amendment further expanded surviving spouse eligibility for service-members who died in the line of duty, regardless of disability rating at time of death — check with the local Commissioner of the Revenue for the current cutoff details.
How to Apply in Hampton Roads
This is where vets get tripped up. The disabled veteran tax exemption Virginia program is run at the local city or county level, not the state. You apply with the Commissioner of the Revenue in the city where the home is located. Each Hampton Roads city has its own form, but they all want the same documents.
- VA benefits summary letter showing your 100% P&T rating or TDIU status. Pull this from VA.gov — it’s a one-page PDF.
- DD-214 (Member 4 copy preferred — shows your character of service).
- Proof of Virginia residency and ownership of the home (deed, settlement statement, or driver’s license).
- The local exemption application form (varies by city).
Once approved, the exemption is retroactive to the date you became eligible — meaning the date of your 100% P&T rating or the date you bought the home, whichever is later. If you’ve owned the house for two years before applying, you can usually get a refund of taxes paid during that window. File anyway — don’t leave money behind because nobody told you.
Hampton Roads City Contacts
- Virginia Beach — Commissioner of the Revenue, Real Estate Division. Application is on the city website under Veterans Real Estate Tax Exemption.
- Norfolk — Office of the Commissioner of the Revenue, Real Estate Division.
- Chesapeake — Commissioner of the Revenue, Real Estate Tax Relief.
- Suffolk — Commissioner of the Revenue, Real Estate Tax Relief Programs.
- Portsmouth — Commissioner of the Revenue. The form is straightforward.
- Hampton — Commissioner of the Revenue, Tax Relief Office.
- Newport News — Commissioner of the Revenue.
Each office processes applications a little differently, but the timeline is usually 30 to 60 days. Once you’re in the system, you don’t have to reapply every year — but you do have to notify the city if you sell, buy a new home, or change your principal residence.
What This Looks Like in Real Numbers
Effective real estate tax rates in Hampton Roads typically run between 1.0% and 1.15% of assessed value, depending on the city. On a median Chesapeake home (about $399,000 right now), the annual tax bill is roughly $4,200. On a $657,000 Virginia Beach home, it’s closer to $7,000. On a $342,000 Norfolk home, around $4,000. Multiply any of those by 30 years and you see why this benefit moves families into neighborhoods they otherwise couldn’t justify.
Combine the exemption with a VA loan and zero down, and the math gets even better. I’ve helped 100% P&T vets buy in Greenbrier, Great Bridge, and Bay Colony where the after-tax monthly payment was lower than what they’d pay to rent a comparable house. That’s the financial edge this exemption gives you.
A Few Things to Watch For
Mortgage escrow needs adjusting after the exemption posts. Your lender’s servicer doesn’t automatically know you got the exemption. You’ll need to send proof to the servicer and request an escrow analysis. Otherwise they keep collecting taxes you don’t owe and your monthly payment stays inflated. I’ve seen vets go six months past approval before they realized.
HOA dues, special assessments, and stormwater fees are not covered. The exemption applies to real estate property tax only. If your neighborhood has a $1,200 annual HOA, you still pay it. Same for the city stormwater utility fee that shows up on most Hampton Roads tax bills.
The Virginia Department of Veterans Services can also help you with the VA disability claim itself if you’re not yet rated 100% but think you should be. They have benefits counselors at no charge — use them. Many vets I work with were rated at 70% or 80% and didn’t know they could file for an increase or for TDIU based on their service-connected conditions.
Working with a Vet Who Knows the Drill
I bring up the disabled veteran tax exemption Virginia at the first buyer consultation, not at closing. We factor it into your monthly budget calculation. We talk to your lender about how to handle the escrow once it’s approved. We pick neighborhoods that make sense given your post-exemption tax situation. That’s what working with a Navy veteran Realtor gets you — somebody who knows the benefits because they’ve used them and seen them used.
If you’re a 100% P&T or TDIU vet shopping in Hampton Roads, or a surviving spouse trying to figure out next steps, let’s talk. I’ll walk you through how the exemption fits into your buying plan and which cities have the smoothest application process. For more about who I am and how I work, head over to Tier One Coastal Realty or browse the city guides for Virginia Beach, Chesapeake, Norfolk, and Hampton.