summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Individual income tax; subtractions; military benefits. Removes the cap on military benefits that may be subtracted from Virginia taxable income for taxable years beginning on and after January 1, 2026, allowing the total amount of such benefits to be subtracted from such income. Under current law, up to $40,000 of military benefits may be subtracted from Virginia taxable income.
AI Summary
This bill proposes to amend Virginia's tax law to allow individuals to subtract the total amount of their military benefits from their Virginia taxable income, starting with the 2026 tax year. Currently, Virginia law limits this subtraction to $40,000 per year. "Virginia taxable income" refers to the portion of an individual's income that is subject to state income tax after certain adjustments. "Military benefits" are defined to include military retirement income, qualified military benefits, and survivor benefit plan payments. This change aims to provide greater tax relief to military personnel and their families by removing the existing cap on this deduction.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Left in Finance (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/HB588 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/20/2026 11:39 am) | https://lis.blob.core.windows.net/files/1091485.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/HB588/text/HB588 |
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