VA Disability Tax Rules in Washington

VA disability compensation is tax-free at the federal level. Washington has no personal state income tax, so there is no Washington state income tax on VA disability compensation.

Washington income tax treatment

• Washington does not impose a personal state income tax.
• VA disability compensation is federally tax-exempt.

Property tax exemptions for disabled veterans in Washington

Washington’s Department of Revenue administers a property tax exemption program for qualifying homeowners.

• Program is generally income-based and applies to a primary residence.
• Includes qualifying veterans with service-connected disability criteria (including higher disability percentages under current law).
• Benefit level depends on household income thresholds and local assessed value/tax structure.

Apply through your county assessor.

Other veteran-related tax benefits in Washington

• Washington offers veteran-focused fee and tax relief in some transportation/vehicle contexts.
• Additional local relief or deferral options may apply based on income and disability status.

Because eligibility relies on income and local assessor administration, check with your county assessor and the Washington Department of Revenue.

Track your VA income and net worth in one place

Nova helps you organize VA disability income with all your other accounts so you can see true net worth progress over time.

Related reading

• VA disability compensation: tax-free income and your net worth
• Military to civilian financial transition
• Financial independence complete guide