VA Disability Tax Rules in Pennsylvania

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

Pennsylvania income tax treatment

• Pennsylvania taxes many income types at a flat rate.
• VA disability compensation is generally not taxable for Pennsylvania personal income tax purposes.
• Pennsylvania also excludes many forms of military retirement income.

Property tax exemptions for disabled veterans in Pennsylvania

Pennsylvania offers a Disabled Veterans’ Real Estate Tax Exemption for qualifying veterans and eligible surviving spouses.

• Typically requires service-connected disability criteria and honorable service.
• Financial-need standards apply under state rules.
• Program administration involves county directors of veterans affairs and state review.

Because financial-need thresholds can change, verify current criteria before applying.

Other veteran-related tax benefits in Pennsylvania

• Pennsylvania does not tax many military retirement benefits.
• Additional local relief may be available by county/municipality.

For updated thresholds and documentation requirements, check with the Pennsylvania Department of Military and Veterans Affairs and your county tax office.

Track your VA income and net worth in one place

Nova helps you turn tax-free VA income into a long-term wealth strategy by tracking all assets and liabilities in one place.

Related reading

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