Does Virginia Tax Retirement Income?

No. Virginia does not tax Social Security benefits.

Social Security benefits are not taxed. Any portion taxed federally is subtracted on the Virginia return.

The Virginia answer is separate from the federal one. Depending on combined income, up to 85% of Social Security benefits can be taxable on the federal return regardless of what Virginia does, so the state rule changes the state line only. Our guide to states that do not tax Social Security shows where Virginia sits among the states that still tax benefits.

Partly. Virginia taxes some pension income, subject to an exclusion or age rule.

Private and public pension income is generally taxable in Virginia, the same as it is federally. The age deduction, when available, is the main offset.

Taxpayers 65 and older can claim an age deduction of up to $12,000 each. For those born after January 1, 1939, the deduction is reduced dollar for dollar by adjusted federal AGI above $50,000 for single filers and $75,000 combined for married filers, so many retirees get only part of it or none.

Public and private pensions, annuities, and retirement-plan distributions do not always get the same treatment. The pension comparison lists which states exempt pensions broadly, partly, or only for certain plans.

Partly. Virginia taxes some traditional 401(k) and IRA withdrawals, subject to an exclusion or age rule.

Traditional 401(k) and IRA withdrawals are generally taxable in Virginia. Roth distributions that are tax free federally stay tax free in Virginia.

Two timing points matter in Virginia. A Roth conversion is taxable in the year it is done, and Virginia starts from federal adjusted gross income, so a large conversion can land in a year when the state exclusion does not cover it. Qualified Roth withdrawals later are generally not taxable at either level. Required minimum distributions follow the same Virginia rules as any other traditional-account withdrawal.

Every state page on this site runs the same retiree profile so the states can be compared: $30,000 of Social Security, $40,000 withdrawn from a traditional 401(k), and a $20,000 private pension, $90,000 in total.

A 68-year-old single filer with $30,000 of Social Security, $40,000 from a 401(k), and a $20,000 private pension excludes the Social Security, leaving $60,000 of Virginia income. That income puts adjusted federal AGI about $10,000 over the $50,000 phase-out threshold, cutting the $12,000 age deduction to roughly $2,000, so about $58,000 remains before the standard deduction.

Social Security is subtracted in full, leaving $60,000 of 401(k) and pension income. Adjusted federal adjusted gross income for the age deduction also ignores Social Security, so it is $60,000, which is $10,000 over the $50,000 single threshold and cuts the $12,000 age deduction to $2,000. Subtract that $2,000, the $8,750 standard deduction, the $930 personal exemption, and the $800 age 65 exemption, and about $47,500 is taxable: 2% on the first $3,000, 3% on the next $2,000, 5% on the next $12,000, and 5.75% on the remaining $30,500, roughly $2,480 of Virginia tax. Contrast a married couple, both 68, with the same $90,000 all in one spouse's name: adjusted federal adjusted gross income of $60,000 is under the $75,000 married threshold, so each spouse keeps the full $12,000 age deduction, and after $24,000 of age deductions, the $17,500 joint standard deduction, and $3,460 of exemptions only about $15,000 is taxable, roughly $620. A $150,000 lump-sum IRA withdrawal wipes out the age deduction entirely and is taxed at 5.75%, adding roughly $8,700.

The same $90,000 profile looks different a state line away. The rows below come from the reviewed 51-state table; each state name links to its own guide.

• North Carolina: treats Social Security as exempt, pensions as taxed, and 401(k) and IRA withdrawals as taxed, with a top rate of 3.99% and bailey relief and service-conditioned military deduction.
• Delaware: treats Social Security as exempt, pensions as partially taxed, and 401(k) and IRA withdrawals as partially taxed, with a top rate of 6.60% and up to $12,500 pension exclusion at age 60+.
• Florida: has no individual income tax at all.

Virginia is not the tax haven its exempt Social Security suggests. The age deduction phases out quickly, so middle-income retirees with meaningful 401(k) withdrawals often lose most of the $12,000 while still facing a 5.75% top rate.

Military retirement: Virginia allows a military benefits subtraction of up to $40,000 of military retirement income and qualifying survivor benefits for 2025 and later years, with no age requirement. It can be claimed alongside the age deduction when both apply. See the military retirement tax map for every state's treatment.

Estate and inheritance tax: Virginia has no estate or inheritance tax. Its estate tax was repealed for deaths after July 1, 2007.

Selling a home or investments in Virginia: retirement-income rules do not cover capital gains. See Virginia capital gains tax before selling appreciated property or a brokerage position in the year you move or retire.

• Confirm the exclusion you are claiming. Taxpayers 65 and older can claim an age deduction of up to $12,000 each. For those born after January 1, 1939, the deduction is reduced dollar for dollar by adjusted federal AGI above $50,000 for single filers and $75,000 combined for married filers, so many retirees get only part of it or none.
• Part-year residents. If you moved into or out of Virginia during the year, retirement income is generally allocated to the period of residency, and the former state may still tax distributions received before the move. Document the move date, the new domicile, and where each distribution was received.
• Withholding and estimates. Pension and IRA custodians often withhold federal tax but not Virginia tax. If Virginia taxes any part of your retirement income, check whether quarterly estimated payments are needed to avoid an underpayment penalty.
• Federal side. The federal return has its own rules: up to 85% of Social Security can be taxable, the temporary $6,000 federal senior deduction is available for 2025 through 2028 subject to income limits, and Roth conversions are taxed in the conversion year. State exemptions do not change any of that.
• Large one-time distributions. Manage adjusted federal AGI around the $50,000 and $75,000 phase-out lines. A modest shift in withdrawal timing can preserve thousands of dollars of age deduction, and military retirees should confirm they are stacking the $40,000 subtraction with the age deduction correctly.

Comparing states before a move? Use the retirement taxes by state table and the moving states tax guide, and read retirement tax planning for how distributions, conversions, and a move are sequenced together.