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Bill > HB137
VA HB137
VA HB137Income tax, state; increases current cap of military benefits that may be subtracted.
summary
Introduced
01/04/2026
01/04/2026
In Committee
01/29/2026
01/29/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Individual income tax; subtractions; military benefits. Incrementally increases the current cap of $40,000 of military benefits that may be subtracted from Virginia taxable income such that by taxable year 2030 and for all taxable years thereafter, the total amount of military benefits may be subtracted from such income.
AI Summary
This bill amends Virginia's income tax law to gradually increase the amount of military benefits that individuals can subtract from their taxable income. Currently, there's a cap on these subtractions, and this legislation proposes to raise that cap incrementally. Specifically, starting in taxable year 2026, the amount of military benefits that can be subtracted will be adjusted annually based on the Consumer Price Index (CPI-U), which measures inflation, or zero if inflation is negative. This change aims to provide greater tax relief to military personnel by allowing them to deduct more of their military benefits from their state income taxes over time.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (3)
Last Action
Left in Committee Appropriations (on 02/18/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20261/HB137 |
| BillText | https://lis.virginia.gov/bill-details/20261/HB137/text/HB137H1 |
| BillText | https://lis.virginia.gov/bill-details/20261/HB137/text/HB137HC2 |
| BillText | https://lis.virginia.gov/bill-details/20261/HB137/text/HB137HC1 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/18/2026 5:15 pm) | https://lis.blob.core.windows.net/files/1090056.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/HB137/text/HB137 |
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