Retiring in Virginia: how your income is taxed
Virginia is fairly tax-friendly for retirees. On a typical retirement income it ranks #36 of 51 for the lowest state income tax.
The rules in Virginia
- Social Security: Social Security and Tier 1 Railroad Retirement benefits are fully subtracted from Virginia income.
- Pensions: Each person 65 or older gets a $12,000 age deduction that covers any income, not only pensions. It is reduced $1 for each $1 of adjusted federal AGI (AGI minus taxable Social Security) above $50,000 (single) or $75,000 (married); there is no income test for people born before January 1, 1939. Public and private pensions are otherwise taxed alike.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals are taxed but are covered by the same $12,000 age deduction at 65 and older, with the same income test.
- At 65 and older: Each filer 65 or older gets an extra $800 personal exemption.
Calculate your Virginia retirement taxes
State income tax in Virginia: $750 a year
In Virginia, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Virginia you'd pay about $750 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $64,914 (7.3% total).
Virginia ranks #36 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Virginia
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $750 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $4,890 | $4,287 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Virginia's main exclusions and may differ for income-tested credits.
States with lower retirement taxes
Moving to Virginia in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Virginia come from (IRS migration data, 2022–2023).
- Maryland to Virginia
- North Carolina to Virginia
- Florida to Virginia
- California to Virginia
- New York to Virginia
- Texas to Virginia
Frequently asked questions
Does Virginia tax Social Security?
Not taxed. Social Security and Tier 1 Railroad Retirement benefits are fully subtracted from Virginia income.
Does Virginia tax pensions?
Partly taxed. Each person 65 or older gets a $12,000 age deduction that covers any income, not only pensions. It is reduced $1 for each $1 of adjusted federal AGI (AGI minus taxable Social Security) above $50,000 (single) or $75,000 (married); there is no income test for people born before January 1, 1939. Public and private pensions are otherwise taxed alike.
Does Virginia tax 401(k) and IRA withdrawals?
Partly taxed. 401(k) and IRA withdrawals are taxed but are covered by the same $12,000 age deduction at 65 and older, with the same income test.
Is Virginia a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Virginia charges about $750 in state income tax, ranking #36 of 51 (lowest tax first).
Related
Sources: tax.virginia.gov, tax.virginia.gov (2). Rules reviewed .