District of Columbia Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax
The state benefits District of Columbia gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.
DC's main veteran tax benefit is the Disabled Veterans' Homestead Deduction. It cuts $445,000 off the assessed value of the home of a veteran rated 100% totally and permanently disabled (or paid at the 100% rate for unemployability), for households under the TY2026 income limit of $163,500. Since October 1, 2025, eligible surviving spouses can also qualify. DC does not exclude military retired pay from income tax: the $3,000 pension exclusion for people 62 and older, which covered military retired pay, applied only to tax years before 2015. (sources)
Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.
Property tax exemptions for veterans in District of Columbia
| Benefit | Who qualifies | Amount | How to apply | Source |
|---|---|---|---|---|
| Disabled Veterans' Homestead Deduction | A veteran the U.S. VA rates as totally and permanently disabled from a service-connected condition, or pays at the 100% rate due to unemployability. The veteran must be domiciled in DC, own at least 50% of the property by deed, and live in it as the principal residence; the property can have no more than 5 dwelling units. Total household federal AGI must be under $163,500 for TY2026 (based on 2024 AGI). Cooperatives are not eligible. Recipients cannot also receive the standard Homestead Deduction, Senior/Disabled Tax Relief, or the Assessment Cap Credit. | $445,000 reduction in assessed value (in effect since October 1, 2022) | Apply online through the Mayor's Office of Veterans Affairs (Mayor's Office of Community Affairs) disabled-veterans homestead application; MOVA certifies disability status to OTR. Applications filed Oct 1 to Mar 31 get the full tax-year benefit; those filed Apr 1 to Sep 30 get half, on the second-half bill. Active-duty members also attach DD-2058. Questions: (202) 724-5454. | Disabled Veterans Homestead Deduction | Mayor's Office of Community Affairs |
| Disabled Veterans' Spouse Homestead Deduction (surviving spouse/domestic partner) | Eligible surviving spouse or domestic partner of a qualifying disabled veteran (D.C. Code § 47-850(a-2)); in effect since October 1, 2025 | The same $445,000 reduction in assessed value | Contact the Mayor's Office of Veterans Affairs at (202) 724-5454 | Real Property Tax Reliefs, Credits, and Deductions | OTR |
Is military retired pay taxed in District of Columbia?
| Treatment | Amount or limit | Source |
|---|---|---|
| Fully taxable. DC has no current exclusion for military retired pay. The D.C. Code § 47-1803.02(a)(2)(N)(i) exclusion for pension, military retired pay, or annuity income of taxpayers 62 and older applied only to taxable years beginning before January 1, 2015. | No exclusion (the former exclusion was the lesser of $3,000 or the actual amount received, ages 62+, and ended after tax year 2014) | code.dccouncil.gov |
For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.
Other District of Columbia veteran benefits
No other state veteran benefits are listed for District of Columbia on this page yet: only benefits checked against official sources are shown.
Common questions
Does District of Columbia have a property tax exemption for disabled veterans?
District of Columbia lists 2 veteran property tax benefits. The main one: Disabled Veterans' Homestead Deduction. Who qualifies: A veteran the U.S. VA rates as totally and permanently disabled from a service-connected condition, or pays at the 100% rate due to unemployability. The veteran must be domiciled in DC, own at least 50% of the property by deed, and live in it as the principal residence; the property can have no more than 5 dwelling units. Total household federal AGI must be under $163,500 for TY2026 (based on 2024 AGI). Cooperatives are not eligible. Recipients cannot also receive the standard Homestead Deduction, Senior/Disabled Tax Relief, or the Assessment Cap Credit.. Amount: $445,000 reduction in assessed value (in effect since October 1, 2022) (Disabled Veterans Homestead Deduction | Mayor's Office of Community Affairs).
How do I apply for the District of Columbia veteran property tax exemption?
Apply online through the Mayor's Office of Veterans Affairs (Mayor's Office of Community Affairs) disabled-veterans homestead application; MOVA certifies disability status to OTR. Applications filed Oct 1 to Mar 31 get the full tax-year benefit; those filed Apr 1 to Sep 30 get half, on the second-half bill. Active-duty members also attach DD-2058. Questions: (202) 724-5454. (Disabled Veterans Homestead Deduction | Mayor's Office of Community Affairs).
Does District of Columbia tax military retirement pay?
Fully taxable. DC has no current exclusion for military retired pay. The D.C. Code § 47-1803.02(a)(2)(N)(i) exclusion for pension, military retired pay, or annuity income of taxpayers 62 and older applied only to taxable years beginning before January 1, 2015. Amount or limit: No exclusion (the former exclusion was the lesser of $3,000 or the actual amount received, ages 62+, and ended after tax year 2014) (code.dccouncil.gov).
Sources
- Disabled Veterans Homestead Deduction | Mayor's Office of Community Affairs
- Real Property Tax Reliefs, Credits, and Deductions | OTR
- code.dccouncil.gov
Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.
Related
District of Columbia senior property tax relief → District of Columbia state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →