Veteran taxes by state
District of Columbia veteran taxes
How the District of Columbia treats military retired pay and Survivor Benefit Plan annuities in its income tax, and its property tax and vehicle registration relief for disabled veterans — from the state’s own pages.
On this page5 sections
- Military retired pay
- Taxedtax year 2025
- SBP annuities
- Partly exempt
- Property tax
- Exemption or credit
- Vehicle registration
- Fee waiver or discount
Military retired pay in the District
Taxedtax year 2025Sources 1, 2
The District of Columbia taxes military retired pay. The 2025 D-40 booklet lists no subtraction for military retirement pay, and the former exclusion of up to $3,000 of pension or military retired pay for persons 62 or older applied only for taxable years beginning before January 1, 2015 (D.C. Code § 47-1803.02).
Survivor Benefit Plan annuities
Partly exemptSources 3, 4
The District excludes survivor benefits received from the District of Columbia or the federal government by persons who are 62 years of age or older by the end of the taxable year (D.C. Code § 47-1803.02; Form D-40, line 12). Survivors under 62 receive no exclusion. The Office of Tax and Revenue does not name the Survivor Benefit Plan.
Property tax relief for disabled veterans
Exemption or creditSources 5, 6
Under D.C. Code § 47-850(a-2), the District deducts $445,000 from the assessed value of a homestead owned by a veteran whom the VA classifies as having a total and permanent service-connected disability, or who is paid at the 100% rate due to unemployability. The property must be the veteran’s principal residence, have no more than five units, and be at least 50% owned by the veteran, and the household must meet an income limit (federal AGI for 2024 under $163,500 for tax year 2026, the only limit the Office of Tax and Revenue has posted). The veteran must be domiciled in the District, and cooperative properties are not eligible. Applications go to the DC Office of Veterans Affairs, which certifies eligibility to the Office of Tax and Revenue.
- Deduction: $445,000 of assessed value; it replaces the regular homestead deduction, Senior Citizen/Disabled Tax Relief and the assessment cap credit.
- Applications filed October 1 to March 31 get the full tax year; April 1 to September 30, half.
Surviving spouse
From October 1, 2025 an eligible surviving spouse or domestic partner may receive the same $445,000 deduction if the veteran’s property was receiving it, or would have been eligible, at the veteran’s death.
Vehicle registration for disabled veterans
Fee waiver or discountSource 7
No annual motor vehicle registration fee is required for one noncommercial motor vehicle owned by a veteran classified by the VA as having a total and permanent disability resulting from a service-incurred or service-aggravated condition (D.C. Code § 50-1501.03(f)).
- One vehicle per qualified veteran; the application includes a statement of the VA total and permanent classification (§ 50-1501.03(g)).
Sources
Each source was read on October 28, 2026 on the state’s own site, the normal way. The numbers in the sections above point here.
- 2025 D-40 Booklet, District of Columbia Individual Income Tax Forms and Instructions
- § 47–1803.02. Gross income — Items included and excluded; adjusted gross income defined.
- 2025 D-40 Booklet, Line 12 DC and federal government survivor benefits
- § 47–1803.02. Gross income — Items included and excluded (a)(2)(N)(ii)
- Real Property Tax Relief, Credits and Deductions
- § 47–850. Residential property tax relief — Homestead deduction for houses and condominium units.
- § 50–1501.03. Fees classified and use of proceeds designated.