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The Daily Insight

How much of my VA disability is taxable?

Author

Mia Ramsey

Published Apr 02, 2026

VA Disability Benefits Disability benefits you receive from the Department of Veterans Affairs (VA) aren’t taxable. You don’t need to include them as income on your tax return. Tax-free disability benefits include: disability compensation and pension payments for disabilities paid either to veterans or their families.

Is VA disability taxable in Virginia?

The benefits are not subject to federal or state income tax. The payment of retirement pay, disability severance pay and separation incentive payments known as SSB and VSI (Special Separation Benefits and Voluntary Separation Incentives) also affects the amount of VA compensation paid.

What is the VA disability pay for 50%?

VA Compensation Rates: 30% – 60% Without Children

Dependent Status30% Disability50% Disability
Veteran with no dependents$441.35$905.04
Veteran with Spouse Only$493.35$992.04
Veteran with Spouse & One Parent$535.35$1,062.04
Veteran with Spouse and Two Parents$577.35$1,132.04

Do disabled veterans pay tolls in Virginia?

Effective July 1, 2015, any veteran with a service-connected disability certified by the U.S. Department of Veterans Affairs (VA) may purchase Disabled Veteran special plates, subject to all applicable registration fees and a special plate fee of $10.

What benefits do 90% disabled veterans get in Virginia?

State Benefits for 90 Percent Disabled Veterans Educational discounts or free tuition at local universities. Homeowners tax exemptions. Veteran housing programs (i.e., assisted living, retirement villages) Long-term nursing facilities.

Do you count VA disability as income?

According to the IRS, disability benefits received from the VA should not be included in your reported gross income and are not taxable at the federal level. Payments that are considered disability benefits include: Disability compensation and pension payments for disabilities paid either to veterans or their families.

Are there VA disability benefits that are not taxable?

Are Veterans (VA) Disability Benefits Taxable? Veterans disability benefits are not taxable, according to IRS Publication 907. What Counts as Veterans Disability Benefits?

How much does a 50 percent VA disability pay?

50 VA Disability Pay Rate in 2020. In 2020, a 50 percent VA disability rating is worth a minimum of $893.43 per month and is tax free at both the state and federal levels. Many veterans with an 50% VA rating are looking for ways to increase their VA rating because of the additional benefits available at the 100% VA rating.

What kind of benefits do 50 disabled veterans get?

List of Top 20 VA Benefits for Veterans 50 Disabled. #1: 50 VA Disability Compensation Pay. #2: VA Special Monthly Compensation Benefits. #3: Veterans Benefits Banking Program (VBBP) #4: No cost health care and prescription medications. #5: Travel allowance for scheduled appointments at a VA medical …

What kind of tax return do I need for disabled veteran?

the combat-disabled veteran applying for, and being granted, Combat-Related Special Compensation, after an award for Concurrent Retirement and Disability. To do so, the disabled veteran will need to file the amended return, Form 1040X, Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040, 1040A or 1040EZ.