Virginia Income Tax Deduction for Military Pay
Deduction of up to $15,000 of basic pay (does not apply if basic pay income is over $30,000).
Who is eligible for a Virginia Income Tax Deduction for Military Pay? Must be a member of the military (Active, Reserve, or National Guard) stationed inside or outside Virginia, provided they are on extended active duty for more than 90 days. For every $1.00 of income over $15,000, the maximum subtraction is reduced by $1.00. For example, if basic pay is $16,000, the Service member is entitled to deduct only $14,000. Learn more about the Virginia Income Tax Deduction for Military Pay.
Virginia Tax Exemption for National Guard Income
The wages or salaries received by any person for active and inactive service in the National Guard of the Commonwealth of Virginia, not to exceed the amount of income derived from thirty-nine calendar days of such service or $3,000, whichever amount is less. If a National Guard Service member has been in an active duty status for 90 consecutive days or more during the taxable year, they may also qualify for the exemption for the first $15,000 of basic military pay. However, if a National Guard Service member has been on active duty status for less than 90 consecutive days of the taxable year, they will not qualify for the exemption for the first $15,000 of basic military pay. If their extended active duty status rolls into the following taxable year and lasts for more than 90 consecutive days, they will qualify for the exemption on the following year income tax return, but only for the pay earned in that taxable period.
Who is eligible for a Virginia Tax Exemption for National Guard Income? Must be a member of Virginia Air National Guard, in the rank of Captain (03) or below to be eligible. Learn more about the Virginia Tax Exemption for National Guard Income.
