Does Virginia tax Social Security? Retirement income rules
Virginia is fairly tax-friendly for retirees. On a typical retirement income it ranks #36 of 51 for the lowest state income tax.
Assumptions behind this comparison
The ranking uses a full-year resident, single filer age 67, with $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals under 2026 rules. It models a general private pension and traditional IRA withdrawals. Public or military pension exceptions, early-distribution penalties and itemized deductions require separate checking. Maryland and Indiana estimates include an approximate statewide-average county income tax; other local income taxes are not modeled. A state with no income tax differs from a state that exempts only specified retirement income.
The joint table uses two spouses age 67, with each income category split equally between them. Personal exclusions follow each spouse's own eligible income; some states instead allow a joint cap. The calculator initially assigns household income to you and lets you enter your spouse's actual age and share. Read the source instructions for your pension type.
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, qualifying employer-plan withdrawals can receive the pension exclusion while traditional IRA withdrawals do not. Keep each account in its own field when changing state; the calculator applies the state-specific treatment.
The employer-plan field supports federally taxable private 401(k) / 403(b) retirement distributions owned by someone aged 60 or older. Earlier distributions and Hawaii, Mississippi or Pennsylvania employer-plan scenarios are not calculated; funding or plan retirement eligibility needs a separate check. Enter each amount once; do not include completed rollovers, Roth payments or special public/military plans.
Older shared links did not identify employer-plan withdrawals separately. Pension and IRA amounts have been left unchanged. If an old amount includes 401(k) or 403(b) withdrawals, move that portion into the employer-plan field before comparing states; the tool cannot infer the original account type.
Household totals include taxable private pensions and traditional retirement withdrawals. Other ordinary income means taxable interest and ordinary dividends; capital gains, qualified dividends, tax-exempt interest, wages, Roth distributions and special public or military pension rules need a separate calculation. Disability and survivor eligibility are not assessed by this tool. Age bands represent the listed ages for the full year; midyear eligibility and birth-date exceptions need checking.
Local income taxes are not modeled here, except the approximate statewide-average county rates included when you select Maryland or Indiana.
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 traditional IRA withdrawals | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals | $750 | $0 | $4,336 |
| $40,000 Social Security, $40,000 private defined-benefit pension, $50,000 traditional IRA withdrawals, $10,000 other income | $4,890 | $4,287 | $19,812 |
Age 67, 2026 rules including the federal senior deduction. For the joint column, income is the household total, both spouses are 67, and each owns 50% of every income category. State estimates apply Virginia's main exclusions and may differ for income-tested credits.
Lower-tax states for the age-67 example
The amounts below use the fixed example above. Comparison links carry the last valid household entered in the calculator, including each spouse's income and age; the destination recalculates that household. Finish correcting invalid entries before using a comparison.
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 private defined-benefit pension, $20,000 traditional IRA withdrawals, 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 .