Virginia retirement taxes at a glance (2026)
| State income tax | Graduated, top rate 5.75%Virginia has a graduated income tax from 2% to 5.75%. |
|---|---|
| Social Security | Not taxedVirginia fully exempts Social Security and Tier 1 Railroad Retirement benefits. |
| Pensions | Partly taxedPensions are taxed, but taxpayers age 65+ can take an age deduction of up to $12,000 each, reduced $1 for each $1 of adjusted federal AGI above $50,000 (single) or $75,000 (married). Those born on or before January 1, 1939 get the full amount with no income test. Exclusion: up to $12,000 (age 65+). |
| 401(k) and IRA withdrawals | Partly taxedIRA and 401(k) withdrawals are taxed, with the same income-tested $12,000 age deduction as the only offset. |
| Government pensions | Partly taxedGovernment pensions are taxed like private pensions and can use the age deduction. |
| Military retirement pay | Partly taxedFrom tax year 2025, up to $40,000 of military retirement and survivor benefits can be subtracted, with no age requirement; it can be combined with the age deduction. |
| Estate tax | No |
| Inheritance tax | No |
Recent changes and good to know
- The military benefits subtraction phased up from $20,000 (2023) to $30,000 (2024) to $40,000 (2025 and later).
- No 2026 changes to retiree provisions were found.
How to lower your retirement taxes in Virginia
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in Virginia too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Frequently asked questions
Does Virginia tax retirement income?
Yes, partly: Virginia does not tax Social Security, but it taxes pensions and IRA/401(k) income, with a $12,000 age deduction that phases out for middle and higher incomes and a $40,000 military retirement subtraction.
Does Virginia tax Social Security?
Virginia fully exempts Social Security and Tier 1 Railroad Retirement benefits.
Does Virginia tax pensions?
Pensions are taxed, but taxpayers age 65+ can take an age deduction of up to $12,000 each, reduced $1 for each $1 of adjusted federal AGI above $50,000 (single) or $75,000 (married). Those born on or before January 1, 1939 get the full amount with no income test.
Does Virginia tax 401(k) and IRA withdrawals?
IRA and 401(k) withdrawals are taxed, with the same income-tested $12,000 age deduction as the only offset.
Does Virginia tax military retirement pay?
From tax year 2025, up to $40,000 of military retirement and survivor benefits can be subtracted, with no age requirement; it can be combined with the age deduction.
Sources (last verified 2026)
- Military Benefits Subtraction FAQ — Virginia Tax (2026)
- Deductions — Virginia Tax (2026)
- State Individual Income Tax Rates and Brackets, 2026 — Tax Foundation (2026)
- Virginia retirement income tax guide — Brevy Care (2026)
- Does Virginia Tax Social Security and Pensions? — Taxstra (2026)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.