Disabled Veterans Tax Benefits

The following programs approved by the Virginia General Assembly and Chesapeake City Council are available for Disabled Veterans:

• Personal Property Tax Exemption on One Vehicle
• Lower Personal Property Tax Rate on one Vehicle
• Real Estate Tax Exemption

Personal Property Tax Exemption on One Vehicle

On March 31, 2021, legislation was approved by the Virginia General Assembly exempting certain disabled Veterans and their surviving spouses from local personal property taxes on one motor vehicle (passenger car, pickup or panel truck) which they owned (not leased). In accordance with state law, the level of exemption for which one may be eligible is determined by legal ownership of the property.

A qualified Veteran must be certified by the U.S. Department of Veteran Affairs (VA) to be a) totally and permanently disabled due to a service-connected disability and b) to have an overall disability rating of 100% or a compensation rating of 100% due to individual unemployability. The exemption shall be applicable on the date the motor vehicle is acquired of January 1, 2021 and shall not be applicable to any period of time prior to January 1, 2021. The exemption shall expire on the date of the disabled veteran's death and shall not be available for his surviving spouse. To apply for this exemption, review the Eligibility Requirements and file an Application Form (PDF) with the Commissioner of the Revenue's Office. 

Lower Personal Property Tax Rate on One Vehicle

Virginia code allows for localities to provide a Lower Personal Property Tax rate to Disabled Veterans on one motor vehicle (passenger car, pickup or panel truck) which they own (not lease). In accordance with state law, the Lower Rate for which one may be eligible is determined by legal ownership of the property. This benefit is in addition to the Exemption from Personal Property taxes on one vehicle, and is available for Disabled Veterans who may not be eligible for the exemption.

One motor vehicle owned and regularly used by a veteran who has either lost, or lost the use of, one or both legs, or an arm or a hand, or who is blind or who is permanently and totally disabled as certified by the Department of Veterans Services. In order to qualify, the veteran shall provide a written statement to the commissioner of revenue or other assessing officer from the Department of Veterans Services that the veteran has been so designated or classified by the Department of Veterans Services as to meet the requirements of this section, and that his disability is service-connected. For purposes of this section, a person is blind if he meets the provisions of § 46.2-100.

The current Lower Tax rate for this benefit is $0.09 per $100 of Assessed Value rather than the General Rate of $4.08 of per $100 of Assessed Value. To apply for this exemption, review the Eligibility Requirements and file an Application Form (PDF) with the Commissioner of the Revenue's Office.

Real Estate Tax Exemption

On April 6, 2011, legislation was approved by the Virginia General Assembly exempting certain disabled Veterans and their surviving spouses from local real estate taxes on their principal place of residency which they own and occupy. In accordance with state law, the level of exemption for which one may be eligible is determined by legal ownership of the property.

For tax years beginning in 2017, eligibility for this tax exemption includes manufactured (mobile) homes owned and occupied by the qualified applicant even if the applicant does not own the land on which the manufactured home is located. If such land is not owned by the veteran, then the land is not exempt.

A qualified Veteran must be certified by the U.S. Department of Veteran Affairs (VA) to be:

• Totally and permanently disabled due to a service-connected disability and 
• To have an overall disability rating of 100% or a compensation rating of 100% due to individual unemployability

The surviving spouse of a qualified Veteran is eligible for the tax exemption if the death of the Veteran occurred on or after January 1, 2011 and the surviving spouse does not remarry.

To apply for this exemption, review the Eligibility Requirements and file an Application Form (PDF) with the Commissioner of the Revenue's Office. 

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