State retirement taxes · 2026
Does Virginia tax retirement income?
Short answer: Partly. Virginia does not tax Social Security benefits. An age deduction of up to $12,000 per person 65+, phased out above $50,000 ($75,000 married) of adjusted AGI.
AGI is the adjusted gross income on your federal tax return.
What’s taxed in Virginia
2026 rules.
- Social SecurityNot taxed
- Virginia does not tax Social Security benefits.
- PensionsPartly taxed
- Pensions are taxable, but each person 65+ can take an age deduction of up to $12,000, reduced at higher incomes.
- IRA & 401(k) withdrawalsPartly taxed
- IRA and 401(k) withdrawals are taxable; the same income-tested age deduction applies.
- Military retirement payPartly taxed
- Up to $40,000 a year of military benefits can be subtracted at any age from 2025 (Medal of Honor recipients’ retirement pay is fully exempt). It can be combined with the age deduction; CSRS and FERS pensions don’t qualify.
- Income tax rate5.75% top
- Four brackets for all filers, unchanged since 1990: 2% on the first $3,000, 3% to $5,000, 5% to $17,000 and 5.75% above $17,000.
Does Virginia tax Social Security?
Virginia does not tax Social Security benefits.
Social Security benefits (and Tier 1 Railroad Retirement) are subtracted, with no age or income limit.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Virginia?
Pensions are taxable, but each person 65+ can take an age deduction of up to $12,000, reduced at higher incomes.
Virginia has no pension exclusion. The age deduction is $12,000 per person 65+. If you were born on or before January 1, 1939 you get the full amount regardless of income; otherwise it’s reduced $1 for every $1 of “adjusted federal AGI” (AGI minus taxable Social Security) over $50,000 single or $75,000 married. It isn’t indexed and can’t be combined with the disability income subtraction.
Public vs. private pensions: Treated the same: taxable, with the age deduction.
Are IRA and 401(k) withdrawals taxed in Virginia?
IRA and 401(k) withdrawals are taxable; the same income-tested age deduction applies.
There is no IRA- or 401(k)-specific exclusion.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Virginia?
Up to $40,000 a year of military benefits can be subtracted at any age from 2025 (Medal of Honor recipients’ retirement pay is fully exempt). It can be combined with the age deduction; CSRS and FERS pensions don’t qualify.
What is Virginia’s income tax rate?
4 brackets, topping out at 5.75%.
Four brackets for all filers, unchanged since 1990: 2% on the first $3,000, 3% to $5,000, 5% to $17,000 and 5.75% above $17,000.
2026 brackets. Each rate applies to taxable income above the amount shown.
| All filers | Rate |
|---|---|
| $0 | 2% |
| $3,000 | 3% |
| $5,000 | 5% |
| $17,000 | 5.75% |
Standard deduction and exemptions
Standard deduction: $8,750 single and $17,500 married for 2025–2026; $9,200 / $18,400 for 2027 and $9,300 / $18,600 for 2028–2029, then back to $3,000 / $6,000 from 2030 unless changed. Personal exemption: $930 each, plus $800 more for each person 65+ or blind.
What tax breaks do seniors get in Virginia?
The age deduction (up to $12,000 per person 65+, income-tested) and the extra $800 exemption. Virginia starts from federal AGI, so the federal $6,000 senior deduction does not apply.
What changed for 2026?
2026 session: federal conformity fixed at December 31, 2025; the standard deduction extended and raised for 2027–2029; the refundable earned income credit extended through 2029. No change to the age deduction, the $40,000 military subtraction or the rates for 2026.
Rates and deductions come from the Code of Virginia, current for 2026.
How Virginia compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- VirginiaThis pageFriendlySocial Security Not taxedTop rate: 5.75% top
- District of ColumbiaLess friendlySocial Security Not taxedTop rate: 10.75% top
- KentuckyVery friendlySocial Security Not taxedTop rate: 3.5% flat
- MarylandFriendlySocial Security Not taxedTop rate: 6.5% top
- North CarolinaFriendlySocial Security Not taxedTop rate: 3.99% flat
- TennesseeTax-free retirement incomeSocial Security Not taxedTop rate: None
- West VirginiaFriendlySocial Security Not taxedTop rate: 4.58% top
State tax is half the picture — check the federal side
Virginia retirement tax questions
Is Virginia tax-friendly for retirees?
We rate Virginia “Friendly” for 2026. Virginia does not tax Social Security benefits. An age deduction of up to $12,000 per person 65+, phased out above $50,000 ($75,000 married) of adjusted AGI. The top income tax rate is 5.75%.
Are required minimum distributions (RMDs) taxed in Virginia?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Virginia’s rules for those accounts. IRA and 401(k) withdrawals are taxable; the same income-tested age deduction applies.
Is military retirement pay taxed in Virginia?
Partly. Up to $40,000 a year of military benefits can be subtracted at any age from 2025 (Medal of Honor recipients’ retirement pay is fully exempt). It can be combined with the age deduction; CSRS and FERS pensions don’t qualify.
What is Virginia’s income tax rate for 2026?
Four brackets for all filers, unchanged since 1990: 2% on the first $3,000, 3% to $5,000, 5% to $17,000 and 5.75% above $17,000.
Sources for Virginia
Primary sources only. We re-check them whenever an agency publishes new figures.
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