Virginia personal property tax exemption for disabled veterans

Disabled Veterans may qualify for one of two different programs for relief of vehicle taxes: 

• Personal Property Disabled Veteran Tax Exemption
• Reduced Vehicle Tax Rate for Qualifying Disabled Veterans

Qualifications are different for each program, but the same form is used to apply for both. We will review your application and contact you directly if further information is required. Otherwise, you will be notified once your application has been approved.

Personal Property Disabled Veteran Tax Exemption

Section 6 of Article X of the Constitution of Virginia was amended effective January 1, 2021 to establish the exemption from local property taxation for one vehicle (i.e., car or truck) used primarily by or for a 100% service-connected, totally and permanently Disabled Veteran.  The vehicle may be owned (not leased) by the Disabled Veteran or their spouse (§ 58.1-3668). 

Disability

• The United States Department of Veterans Affairs must have determined that the veteran has a 100% service-connected, total and permanent disability or a total disability rating based on individual unemployability due to a service-connected disability.
• Documentation from the Department of Veterans Affairs must be provided with the first request.

Personal Property Ownership

• The motor vehicle (i.e., car or truck) must be owned by the veteran and/or spouse.
• Once a vehicle has been selected to receive the exemption, another vehicle (i.e., a replacement vehicle or a vehicle purchased mid-year) can only be selected if the original vehicle is disposed or sold.
• In February each Disabled Veteran is mailed a form on which he/she can designate a different vehicle to receive the exemption for that tax year.
• Leased vehicles and vehicles owned by a business will not qualify.

Reduced Vehicle Tax Rate for Qualifying Disabled Veterans

The Fairfax County Board of Supervisors adopted a lower Vehicle Tax rate of $0.01 per $100 of assessed value on one motor vehicle owned and regularly used by a qualifying disabled veteran in accordance with the Code of Virginia §58.1-3506(A)(19).

The reduced Vehicle Tax rate is subject to adoption by the Board of Supervisors during their deliberation on the County’s annual budget process.

By statute

• Qualified disabled veteran shall be defined to mean a veteran who meets the disability definition in Virginia Code §58.1-3506(A)(19) and is not eligible for a motor vehicle tax exemption authorized by state law.
• Only one vehicle may be taxed at the lower rate for each qualifying disabled veteran.
• Disabled veterans need only apply once, but must contact our office to receive the lower rate on a different vehicle should the approved vehicle be otherwise moved, sold, or disposed.
• Co-ownership does not prevent a disabled veteran from qualifying for the lower rate. The reduced rate, however, does not apply to a vehicle owned solely by a spouse or a surviving spouse.
• Applicants will be required to provide official documentation from the U.S. Department of Veterans Affairs that verifies the disabled veteran has been rated by such agency to have a "100% service-connected, permanent, and total disability and has either lost, or lost the use of, one or both legs, or an arm or a hand, or who is blind."