Washington veteran taxes

Military retired pay in Washington

No income taxSources 1, 2, 3, 4, 5

Washington does not currently have an individual income tax, so military retired pay is not taxed by the state. From January 1, 2028, Chapter 238, Laws of 2026 (ESSB 6346, new Title 82A RCW) imposes a 9.9% tax on Washington taxable income, which starts from federal adjusted gross income and allows a $1,000,000 standard deduction per individual (combined for spouses or registered domestic partners, whether filing jointly or separately), adjusted annually for inflation; the act lists no subtraction for military retired pay. The capital gains excise tax reaches only sales or exchanges of long-term capital assets.

Survivor Benefit Plan annuities

No income taxSources 1, 4

With no individual income tax before 2028, Washington does not tax Survivor Benefit Plan annuities. The 9.9% tax enacted for 2028 and later (Chapter 238, Laws of 2026) is figured from federal adjusted gross income above a $1,000,000 standard deduction and does not mention survivor annuities.

Property tax relief for disabled veterans

Exemption or creditSources 6, 7, 8, 9

Washington’s property tax exemption program for seniors, people with disabilities and veterans (RCW 84.36.381) reduces property taxes on the primary residence of a veteran receiving VA compensation at a combined service-connected rating of 80% or higher, or at a total disability rating for a service-connected disability, whose combined disposable income is at or below the county’s income threshold 3. The reduction depends on income, the home’s value and local levy rates. For taxes levied for collection in 2027 and thereafter, the rating requirement is 40 percent or higher (Chapter 200, Laws of 2025).

• At or below income threshold 3 the residence is exempt from excess levies, the state property tax and certain voter-approved levies; at lower income thresholds part of the regular levies is also exempt (for 2027 and later: the greater of $70,000 or 45 percent of value up to $200,000 at threshold 2, and the greater of $80,000 or 80 percent of value at threshold 1, under Chapter 163, Laws of 2026).
• Applications go to the county assessor; income thresholds are set by county, and renewal is required at least once every six years.
• A separate grant program (RCW 84.39) helps unremarried widows or widowers, age 62 or older or retired because of disability, of veterans who died of a service-connected disability, were rated 100% disabled for 10 years before death, were former prisoners of war rated 100% for one year before death, or died on active duty or in training.

Vehicle registration for disabled veterans

Fee waiver or discountSources 10, 11

Washington issues Disabled American Veteran license plates for one personal-use vehicle without vehicle license fees, license plate fees or excise taxes (RCW 46.18.235). The Department of Licensing asks for a VA letter verifying a 100% disability rating expected to last more than one year; a veteran may take the same fee and excise tax exemption on regular or other qualifying special plates instead.

• The Department of Licensing lists motorcycles, motor homes, passenger vehicles and personal-use trucks of any weight; the vehicle cannot be registered to a business or used commercially, and only one set of plates is issued.
• The plates are good for the life of the veteran and need no renewal when the next plate in the series is chosen; a special background costs extra and must be renewed yearly.
• The sources read do not provide for a surviving spouse.