Does Virginia Tax Social Security or Retirement Income?

Virginia does not tax Social Security benefits. Whether the payments are retirement, disability, or survivor benefits, the full amount you reported on your federal return gets subtracted from your Virginia taxable income, with no income limit and no phase-out.¹ Most other retirement income, though, is taxable at Virginia’s regular rates of 2% to 5.75%.²

How the Social Security Subtraction Works

If any part of your Social Security was taxed on your federal return, you subtract that same amount on your Virginia return. The result is that Virginia collects nothing on those benefits. The subtraction covers retirement, disability, and survivor payments, and it also covers equivalent Tier 1 Railroad Retirement benefits.³

There is no income ceiling. A retiree living on $30,000 and one pulling in $300,000 get the same treatment: their entire Social Security benefit stays out of the Virginia calculation.

Federal Tax May Still Apply

Virginia’s exemption only touches your state return. The federal government may still tax up to 85% of your Social Security depending on your combined income, which is half your annual benefit plus your other taxable income plus any nontaxable interest.

For single filers:

Below $25,000: none of your benefits are federally taxable.
$25,000 to $34,000: up to 50% may be taxable.
Above $34,000: up to 85% may be taxable.

For married couples filing jointly:

Below $32,000: none of your benefits are federally taxable.
$32,000 to $44,000: up to 50% may be taxable.
Above $44,000: up to 85% may be taxable.

Whatever portion is federally taxable is exactly what you subtract on your Virginia return, so the state won’t add anything to that federal bill.

The Age Deduction for Virginians 65 and Older

Virginia offers a separate age deduction of up to $12,000 that runs alongside the Social Security subtraction and applies to your other taxable income, such as pension or investment earnings.¹ The size of the deduction depends on when you were born and how much you earn.

Full $12,000 Deduction

If you were born on or before January 1, 1939, you get the full $12,000 with no income limit. A married couple where both spouses meet that birth date can claim $24,000 combined.

Phase-Out for Later Birth Dates

If you were born between January 2, 1939, and January 1, 1960, the deduction shrinks by $1 for every $1 your adjusted federal adjusted gross income goes over the following thresholds:

Single filers: phase-out starts at $50,000 and ends the deduction 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 exceeding $75,000.

If you were born after January 1, 1960, you don’t qualify for the age deduction at all, no matter your income. The rule sets both a minimum age and a birth-date ceiling.

Military Retirement Subtraction

Starting with the 2025 tax year and continuing into 2026, Virginia allows a subtraction of up to $40,000 for military retirement income.⁴ It covers:

Military retirement pay for service in the U.S. Armed Forces.
Survivor Benefit Plan payments to a veteran’s surviving spouse under the Department of Defense program.
Other military survivor benefits paid to a veteran’s surviving spouse.

Beginning with 2025, there is no age restriction. Recipients of the Congressional Medal of Honor can subtract their entire military retirement income with no cap. You can’t claim this subtraction on income already covered by another Virginia or federal credit, exemption, or deduction.

What Virginia Does Tax

Beyond Social Security and the specific subtractions above, most retirement income is taxed at ordinary Virginia rates. That includes distributions from 401(k) plans, 403(b) accounts, traditional IRAs, and pensions from both private employers and government agencies.³

A few points worth knowing:

Out-of-state pensions. If you retired elsewhere and moved to Virginia, your pension is taxable here. The reverse is also true: if you earned a Virginia pension but now live in another state, federal law bars Virginia from taxing it.⁵
Roth IRAs. Qualified Roth distributions aren’t taxable federally, so Virginia doesn’t tax them either.
Permanent and total disability income. Virginia allows a subtraction of up to $20,000, but you can’t claim it in the same year as the age deduction; you pick whichever saves you more.

Estimated Payments Retirees Often Owe

Pensions and retirement account withdrawals often come without Virginia tax withheld, which pushes many retirees into making quarterly estimated payments. You’re required to make them if your expected Virginia liability after withholding and credits will exceed $150.⁶

For 2026, the due dates are:

First payment: May 1, 2026
Second payment: June 15, 2026
Third payment: September 15, 2026
Fourth payment: January 15, 2027

You can pay the entire estimated amount by May 1 or split it into four equal installments.⁷ Underpay, and Virginia charges interest at the federal underpayment rate plus 2%. If you’ve paid less than 90% of your final liability by the original return due date, an extension penalty of 2% per month kicks in, up to 12%.⁸

1
Virginia Department of Taxation. Subtractions
2
Virginia Department of Taxation. Tax Rate Schedule Tax Table
3
Virginia Department of Taxation. Virginia Taxes and Your Retirement
4
Virginia Code Commission. Virginia Code 58.1-322.02 – Virginia Taxable Income; Subtractions
5
Virginia Department of Taxation. Miscellaneous Filing
6
Virginia Department of Taxation. Individual Estimated Tax Payments
7
Tax.Virginia.gov. 2026 Form 770ES, Virginia Estimated Income Tax Payment Vouchers
8
Virginia Department of Taxation. Penalties and Interest for Individuals