Virginia does not tax Social Security benefits. Retirement, disability, and survivor payments are all fully subtracted from your Virginia taxable income, no matter how much other income you earn.1Virginia Department of Taxation. Virginia Taxes and Your Retirement Most other retirement income, including pensions and traditional 401(k) or IRA withdrawals, is taxed at Virginia’s regular rates of 2% to 5.75%.
How Virginia’s Social Security Subtraction Works
Whatever portion of your Social Security the IRS taxes on your federal return, you subtract that same amount on your Virginia return. The result for state purposes is zero.2Virginia Department of Taxation. Subtractions
There is no income cap and no phase-out. A retiree with $30,000 in annual income and one with $300,000 get identical treatment: the full Social Security benefit comes out of Virginia taxable income. The subtraction covers retirement, disability, and survivor benefits, and it also applies to Tier 1 Railroad Retirement benefits.1Virginia Department of Taxation. Virginia Taxes and Your Retirement
The Federal Government May Still Tax Your Benefits
Virginia’s exemption only removes Social Security from your state return. The IRS can still tax up to 85% of your benefits depending on your combined income, which is half your Social Security plus any nontaxable interest plus your other taxable income. Single filers start owing federal tax on some benefits above $25,000 of combined income; married couples filing jointly above $32,000. Virginia does not add to whatever the federal result is.
Age Deduction for Virginians 65 and Older
Virginia offers a separate age deduction worth up to $12,000 that works alongside the Social Security subtraction and applies to other taxable income such as pensions or investment earnings. Whether you get the full amount depends on your birth date and your income.2Virginia Department of Taxation. Subtractions
If you were born on or before January 1, 1939, you qualify for the full $12,000 with no income limit. A married couple where both spouses meet that birth date gets $24,000 combined.
If you were born between January 2, 1939, and January 1, 1960, the deduction is reduced by $1 for every $1 your adjusted federal adjusted gross income exceeds a threshold:
- Single filers: phase-out starts at $50,000 and ends at $62,000.
- Married filing jointly: phase-out starts at $75,000 and ends at $87,000.
- Married filing separately: based on the couple’s combined adjusted federal adjusted gross income over $75,000.
If you were born after January 1, 1960, you do not currently qualify for this deduction at any income level. Virginia also provides an extra $800 personal exemption for each filer who is 65 or older by January 1 of the tax year, which stacks on top of the standard exemption and the age deduction.3Virginia Tax. Exemptions
Military Retirement Pay
Starting with the 2025 tax year and continuing after, Virginia allows a subtraction of up to $40,000 for military retirement benefits, with no age restriction on who can claim it.4Virginia Code Commission. Virginia Code 58.1-322.02 – Virginia Taxable Income; Subtractions The subtraction covers:
- Retirement pay for service in the U.S. Armed Forces.
- Payments to a surviving spouse under the Department of Defense’s Survivor Benefit Plan.
- Other military survivor benefits paid to a veteran’s surviving spouse.
Recipients of the Congressional Medal of Honor can subtract their entire military retirement income with no dollar cap. You cannot claim this subtraction if you are already claiming a credit, exemption, or deduction for the same income under another provision of Virginia or federal law.
What Virginia Does Tax
Most other retirement income is taxed at Virginia’s ordinary rates, which run from 2% on the first $3,000 of taxable income up to 5.75% on income above $17,000.5Virginia Department of Taxation. Tax Rate Schedule Tax Table That includes:
- Distributions from 401(k) plans, 403(b) accounts, and traditional IRAs.
- Private pensions and government pensions.1Virginia Department of Taxation. Virginia Taxes and Your Retirement
If you moved to Virginia after retiring elsewhere, your out-of-state pension is still taxable here. Any pension income a Virginia resident receives is taxable regardless of where it was earned.6Virginia Department of Taxation. Miscellaneous Filing The reverse is also true: if you earned your pension in Virginia but now live in another state, federal law bars Virginia from taxing it.
Qualified Roth IRA distributions are not taxable in Virginia because they are not taxable federally.1Virginia Department of Taxation. Virginia Taxes and Your Retirement
Estimated Tax Payments on Your Other Retirement Income
Because pensions and retirement account withdrawals often arrive without Virginia tax withheld, retirees frequently need to make quarterly estimated payments. You must do so if your expected Virginia tax liability, after withholding and credits, exceeds $150.7Virginia Department of Taxation. Individual Estimated Tax Payments
The 2026 due dates are May 1, June 15, September 15, and January 15, 2027. You can pay the full amount by May 1 or split it into four equal installments.8Tax.Virginia.gov. 2026 Form 770ES, Virginia Estimated Income Tax Payment Vouchers Missing a deadline brings interest at the federal underpayment rate plus 2%, and an extension penalty of 2% per month, up to 12%, applies if less than 90% of your final tax was paid by the original due date.9Virginia Department of Taxation. Penalties and Interest for Individuals