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Military Combat Zone Pay Exclusion in Virginia 2026

Calculate your military combat zone pay exclusion tax savings in Virginia. With Virginia's 5.75% top state tax rate, your combined savings are higher.

Virginia Tax Overview

State Income Tax
5.75%
progressive
Sales Tax
5.3%
avg combined: 5.75%
Property Tax Rate
0.82%
Median Income
$87,249

Four brackets 2%-5.75%. Top rate at just $17K. Own standard deduction. High median income.

Virginia Income Tax Brackets (Single)

2%
$0 - $3,000
3%
$3,000 - $5,000
5%
$5,000 - $17,000
5.75%
$17,000 +
Your bracket
$1,388
Est. Total Savings
No Limit
Max Deduction
Above-the-Line
Deduction Type
27.8%
Combined Tax Rate

Military Combat Zone Pay Exclusion Savings Calculator for Virginia

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Federal Savings

$1,100

22% bracket

Virginia State

$288

5.75% rate

Total Savings

$1,388

27.8% combined

At a 27.8% combined tax rate in Virginia, every $1,000 in deductions saves you $278 in taxes.

Savings by Tax Bracket in Virginia

10%
$788
12%
$888
22%
$1,388
24%
$1,488
32%
$1,888
35%
$2,038
37%
$2,138

Includes 5.75% Virginia state tax on top of federal savings.

Eligibility Requirements

Military personnel serving in designated combat zones

  • 1Must serve in a combat zone designated by Executive Order
  • 2Enlisted members: all compensation is tax-free
  • 3Officers: exclusion capped at highest enlisted pay plus hostile fire pay

Virginia residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 5.75%.

Common Mistakes to Avoid

  • !Not extending filing deadlines for combat zone service
  • !Forgetting that combat zone extends to qualifying hazardous duty areas
  • !Missing the option to include combat pay for EITC calculation
  • !Forgetting to claim the deduction on your Virginia state return (missing up to 5.75% additional savings)

Virginia Filing Tips

The 5.75% top rate starts at just $17K, so most earners pay the top rate. State standard deduction ($8,000) is lower than federal. Age deduction up to $12,000 for 65+.

Required Tax Forms

Form W-2Form 1040

File these forms with your federal tax return to claim the military combat zone pay exclusion. Virginia may require additional state-specific forms.

Other Tax Deductions in Virginia

Tax Preparation Fees Deduction

Other

~$505
est. savings

AMT Credit Carryforward

Other

~$3,000
est. savings

Hobby Loss Rules & Deductions

Other

~$0
est. savings

Federally Declared Disaster Loss

Other

~$10,091
est. savings

Professional Gambler Business Deduction

Other

~$6,307
est. savings

Innocent Spouse Relief

Other

~$6,307
est. savings

Estimated Tax Penalty Waiver

Other

~$631
est. savings

Mortgage Interest Deduction

Housing

~$4,415
est. savings

Military Combat Zone Pay Exclusion in Neighboring States

Maryland

5.75% top rate (progressive)

~$10,091
+8,703 vs Virginia

District of Columbia

10.75% top rate (progressive)

~$11,909
+10,521 vs Virginia

West Virginia

5.12% top rate (progressive)

~$9,862
+8,474 vs Virginia

Kentucky

4% top rate (flat)

~$9,455
+8,067 vs Virginia

Tennessee

No state income tax

~$8,000
+6,612 vs Virginia

North Carolina

4.5% top rate (flat)

~$9,636
+8,248 vs Virginia

Tax Calculators for Virginia Cities

Virginia BeachChesapeakeArlingtonNorfolkRichmondNewport NewsAlexandriaHamptonRoanokeSuffolk

Calculate Your Full Tax Savings in Virginia

Use our free tax calculators to optimize your entire tax return for Virginia.

Income Tax CalculatorVirginia Income TaxFull Military Combat Zone Pay Exclusion Guide

Frequently Asked Questions

How much can I save with the Military Combat Zone Pay Exclusion in Virginia?

In Virginia, the military combat zone pay exclusion can save you an estimated $1,388 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $288 in Virginia state tax savings at the 5.75% marginal rate. The national average savings is $8,000/year.

What is the Virginia state income tax rate?

Virginia has a progressive income tax system with a top rate of 5.75%. Four brackets 2%-5.75%. Top rate at just $17K. Own standard deduction. High median income.

Who qualifies for the Military Combat Zone Pay Exclusion in Virginia?

Military personnel serving in designated combat zones. The eligibility requirements are the same whether you live in Virginia or another state, as this is a federal tax deduction. However, your total savings will vary based on Virginia's 5.75% top state tax rate.

What tax forms do I need to claim the Military Combat Zone Pay Exclusion in Virginia?

To claim the military combat zone pay exclusion, you need to file Form W-2 and Form 1040 with your federal return. Virginia residents should also check if the state allows this deduction on their state return for additional savings of up to 5.75%. Filing status affects your deduction limits and tax bracket.

Is the Military Combat Zone Pay Exclusion better in Virginia than in states without income tax?

Yes, Virginia residents benefit more because the state's 5.75% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 27.8% means more savings per dollar deducted.

What is the standard deduction in Virginia for 2026?

Virginia's standard deduction is $8,000 for single filers and $16,000 for married filing jointly. The 5.75% top rate starts at just $17K, so most earners pay the top rate. State standard deduction ($8,000) is lower than federal. Age deduction up to $12,000 for 65+.

Related Calculators

Tax Preparation Fees Deduction in Virginia

Avg savings: $400/year

AMT Credit Carryforward in Virginia

Avg savings: $3,000/year

Hobby Loss Rules & Deductions in Virginia

Avg savings: $0/year

Federally Declared Disaster Loss in Virginia

Avg savings: $8,000/year

Professional Gambler Business Deduction in Virginia

Avg savings: $5,000/year

Innocent Spouse Relief in Virginia

Avg savings: $5,000/year