Property Tax: Disabled Veterans' Homestead Deduction
$445,000 Deduction
Since October 1, 2022, DC reduces the assessed value of a qualifying disabled veteran's home by $445,000 before the tax is computed. It is a deduction from assessed value, not a full exemption from the bill.
| Requirement | What OTR says |
|---|---|
| VA disability status | Classified by VA as totally and permanently disabled from a service-incurred or service-aggravated condition, or paid at the 100% rate because of unemployability |
| Home | Principal residence of the veteran; no more than five dwelling units (including the owner's unit); cooperatives are not eligible |
| Ownership and domicile | At least 50% ownership shown on the deed; veteran must be domiciled in the District |
| Household income | Total household federal adjusted gross income below $163,500 for tax year 2026 |
| Properties receiving this deduction are not eligible for the regular Homestead Deduction, Senior/Disabled Tax Relief, or the Assessment Cap Credit. Thresholds change by tax year — confirm current figures with OTR before you apply. | |
Filing deadlines
An approved application filed October 1–March 31 applies to the full tax year. One filed April 1–September 30 receives one-half of the benefit on the second-half bill. Per OTR, the benefit continues in later years while the property keeps qualifying.
If you stop qualifying
OTR says the owner must submit an online cancellation request within 30 days of a change in eligibility, or additional tax, interest and penalties may be assessed. OTR also conducts random eligibility audits.
Questions
Mayor's Office of Veterans Affairs, 441 4th Street NW, Suite 707 North, Washington, DC 20001 · (202) 724-5454. OTR Customer Service: (202) 727-4829.
Mayor's Office of Veterans Affairs (MOVA)
Free Claims Help
MOVA, created in October 2001 under the Executive Office of the Mayor, serves DC's roughly 30,000 veterans and their families. Its District Veteran Service Officers help veterans with federal VA claims and benefits.
Claims and benefits assistance
MOVA lists assisting DC veterans and family members with federal VA claims and benefits as a core service, along with outreach and DC-level veteran programs.
Homestead deduction applications
MOVA is the contact point for the Disabled Veterans' Homestead Deduction application.
Contact
One Judiciary Square, 441 4th St NW, Suite 707 North, Washington, DC 20001 · (202) 724-5454 · ova@dc.gov
VA Washington DC Healthcare System
DC VA Medical Center
The DC VA Medical Center is part of the VA Washington DC Healthcare System. VA lists the main location at 50 Irving Street NW, Washington, DC 20422.
Enrollment and eligibility
VA health care eligibility is set by federal rules, not by DC. Use VA's eligibility pages or call the facility to see whether you qualify and which priority group applies.
Services and contact numbers
Current phone numbers, hours, clinics and mental health contacts are on the VA facility page. Call or check it before you visit.
In crisis?
Veterans Crisis Line: dial 988, then press 1.
Education
Federal + DC Guard
Most education benefits for DC veterans come from the federal GI Bill. DC also has a tuition program for its National Guard members.
Federal GI Bill
Post-9/11 GI Bill, Montgomery GI Bill and Survivors' and Dependents' Educational Assistance are administered by VA and can be used at approved schools in DC or elsewhere. Check eligibility and rates at VA.gov/education.
DC National Guard tuition program (DCTA)
Per the Army's state benefits summary, the Major General David F. Wherley Jr. DC National Guard Retention and College Access Program pays up to $20,000 per fiscal year in tuition and up to $500 in fees for active DC National Guard members who meet its requirements. Contact the DC National Guard Education Support Center at 866-276-4338.
Military children
DC participates in the Interstate Compact on Educational Opportunity for Military Children (MIC3), which addresses enrollment, records and placement when military families move.
Employment
DC Hiring Preference
DC government hiring preference works by adding points to an applicant's numerical rating. Rules and eligibility details are set by the DC Department of Human Resources.
5-point preference
Per the Army's state benefits summary: honorable or general discharge, 180 days or more of active duty (not for training), preference limited to five years after discharge; veterans who entered service after October 14, 1976 must have served during a time of war; veterans eligible for military retired pay are not eligible.
10-point preference
Honorable or general discharge, a VA service-connected disability rating of 30% or more, and receipt of VA disability pension, compensation or retirement benefits.
Call for Hire program
A talent pool of veterans and certain spouses that DC agencies may hire from non-competitively into time-limited Career Service appointments at grade 12 and below. DCHR: (202) 442-9700, dchr.policy@dc.gov.
Federal jobs
Federal veterans' preference is separate from DC's. See our federal employment tool for how it works.
Driver License and ID
Veteran Designation
DC DMV offers a Veteran designation on the driver license or non-driver identification card.
Eligibility
DC DMV says you must have been honorably discharged from a branch of the U.S. armed forces and provide a DD 214, WD AGO form, or DD 256 certifying veteran status.
How to request
Visit a DC DMV service center with your documentation. DMV main phone: (202) 737-4404.
Disabled veteran plates
Specialty plate or fee-waiver rules were not verified for this page. Ask DC DMV directly.
Income Tax and Other Taxes
Check With OTR
Federal law excludes VA disability compensation from taxable income, and the Army's state summary reports that DC does not tax it. DC does tax military pay and military retired pay.
VA disability compensation
Disability compensation and pension paid by VA are not included in taxable income (see IRS Publication 525). Confirm your own return with a tax professional or OTR.
Military pay and retired pay
Per the Army's state summary, DC residents pay tax on military pay and DC offers no reduction for military retired pay.
Combat-zone filing extension
Service members have a 180-day extension to file and pay DC taxes after returning from a combat zone or contingency operation; spouses filing jointly are included.
Burial and Memorial Benefits
Federal VA Benefit
Burial in a VA national cemetery, a headstone or marker, and a Presidential Memorial Certificate are federal VA benefits. Eligibility is set by federal law.
Eligibility
See VA's burial eligibility page for who qualifies. Families usually coordinate with a funeral director and can contact VA's National Cemetery Scheduling Office.
DC cemeteries
Availability at specific cemeteries in the District varies and was not verified here. Check the VA cemetery locator before making plans.
Federal VA Benefits for DC Veterans
Applies Everywhere
These federal benefits apply to eligible veterans regardless of where they live, including DC.
Disability compensation
Monthly tax-free payments for service-connected conditions, rated 0%–100% by VA. See current rates on VA.gov or in our pay rates chart.
VA home loan
Eligible veterans can use the VA-backed home loan with no required down payment in many cases, subject to lender and VA rules.
Health care and CHAMPVA
VA health care for enrolled veterans; CHAMPVA for eligible spouses and children of certain disabled or deceased veterans.
Survivors
Dependency and Indemnity Compensation (DIC) is a federal benefit for eligible survivors.
Free help
Accredited VSOs, including MOVA's service officers, can help file claims at no charge. Verify accreditation at the VA search: va.gov/ogc/apps/accreditation/
Related Resources
📖 VA Disability Pay Rates 2026 Chart
💰 VA Disability Pay Calculator
☢️ PACT Act Eligibility Checker
🗺️ Compare All 50 States
📊 VA Rating Estimator
🏠 VA Home Loan Calculator
🎓 GI Bill Calculator
🏥 CHAMPVA Eligibility
⚰️ VA Burial Benefits
💼 Federal Employment for Veterans
🗺️ Virginia Veterans Benefits
🗺️ Maryland Veterans Benefits
🌟 File a Disability Claim — Free
Sources: DC Office of Tax and Revenue (otr.cfo.dc.gov), DC Mayor's Office of Veterans Affairs (communityaffairs.dc.gov/mova), DC DMV (dmv.dc.gov), VA.gov, and the Army's state benefits summary (myarmybenefits.us.army.mil). Dollar thresholds and rules change; verify with the agency before relying on them. This page is general information, not tax or legal advice. Last reviewed October 31, 2026.
Ready to File Your VA Disability Claim?
A service-connected rating can open up federal compensation and, at P&T or IU 100%, DC's homestead deduction. Our free tool walks you through the claim step by step, and MOVA's service officers can help for free.
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