VA Disability Tax Rules in Ohio

VA disability compensation is tax-free at the federal level. Ohio has a state income tax, but VA disability compensation itself is generally not included in taxable income.

Ohio income tax treatment

• Ohio imposes a personal income tax.
• VA disability compensation is generally treated as non-taxable.
• Ohio has separate rules for military pay and retirement income.

Property tax exemptions for disabled veterans in Ohio

Ohio provides a disabled veteran homestead tax reduction for qualifying homeowners.

• Qualifying veterans with a 100% service-connected disability (or qualifying unemployability status) may receive an enhanced homestead reduction.
• The enhanced homestead exemption covers the first $56,000 of market value for tax year 2025 (indexed annually — confirm the current amount with your county auditor).
• Filings are handled by the county auditor.

Because thresholds and indexed values can change, confirm current-year amounts with your county auditor.

Other veteran-related tax benefits in Ohio

• Ohio offers additional veteran tax/fee benefits in qualifying categories (including certain motor vehicle tax relief under state law).
• County implementation details may vary.

If your case is unusual, check with the Ohio Department of Taxation and your county auditor.

Track your VA income and net worth in one place

Nova helps veterans track tax-free VA income, debt payoff, and investment growth in one net worth dashboard.

Related reading

• VA benefits and net worth: complete guide
• Debt payoff strategies
• Retirement planning and net worth