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Military Benefits Subtraction — $40,000, at Any Age

Up to $40,000 of military benefits subtracted for taxable years 2025 and after. The age-55 requirement applied only through taxable year 2023 — from 2024 the subtraction is allowed at any age. It covers military retirement income, qualified military benefits under IRC 134, Survivor Benefit Plan payments to surviving spouses, and military benefits paid to surviving spouses of veterans.

Verified August 27, 2026

What this benefit is

Up to $40,000 of military benefits subtracted for taxable years 2025 and after. The age-55 requirement applied only through taxable year 2023 — from 2024 the subtraction is allowed at any age. It covers military retirement income, qualified military benefits under IRC 134, Survivor Benefit Plan payments to surviving spouses, and military benefits paid to surviving spouses of veterans.

What it's worth: Up to $40,000 subtracted for taxable years 2025 and after, at any age

  • The saving is your marginal state rate applied to the amount excluded, so it depends on your bracket. We do not publish a figure that would misstate it.
  • Va. Code 58.1-322.02(18) sets the maximum at $40,000 for taxable years 2025 and after.
  • The age-55 requirement applied only through taxable year 2023. For taxable year 2024 and after the subtraction is allowed for military benefits received by an individual of any age.
  • Covered: military retirement income; qualified military benefits under IRC 134; Survivor Benefit Plan payments to surviving spouses; and military benefits paid to surviving spouses of veterans.

Who is entitled to it

  • You receive military retired pay.
  • Your home is in Virginia.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: April 15, with your return
  1. 1Claim the subtraction or deduction on your state return for the year.
File with
Your state revenue department, with your annual return
Documents you will need
form 1099 r
Annual
Claimed once a year.
Worth knowingIt covers Survivor Benefit Plan payments to a surviving spouse as well as the veteran's own retired pay, which several comparable state subtractions do not.
Known gapWe verified the $30,000 figure for tax year 2024 directly from Virginia Tax. The subtraction was legislated as a phase-in and steps up in later years; check the current year's figure rather than relying on this one.

Sources

Why only one source type: We publish this record to describe how the state taxes military income rather than to route a filing, so the administering department's own guidance is sufficient.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.