Virginia Retirement Taxes (2026): Age Deduction & Probate Tax

How Virginia taxes retirement income (statute-cited)

The probate tax — and what settling an estate costs

Is Virginia a good state to retire in for taxes?

Virginia vs. its neighbors

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2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.

Updated July 24, 2026. Quick answer: Virginia never taxes Social Security, has graduated rates that reach 5.75% on taxable income over $17,000, and offers two notable offsets with very different rules: an age deduction of up to $12,000 at 65+ that phases out quickly with income, and a military benefits subtraction that reached its full $40,000 per veteran in 2025. Virginia also levies something almost no state has: a literal probate tax on estates.

Federal civil service pensions in Virginia: does Virginia tax federal pensions.

State retirement-income forms, line by line: Virginia age deduction.

Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Virginia tax on inherited IRA withdrawals.

Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Virginia tax 403(b) and 457(b) withdrawals.

Drawing a pension? Whether the state withholds tax from it, from its own documents: Virginia tax withholding on pension payments.

Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is Virginia a community property state?.

Selling your home? How the state taxes the profit, from its own tax documents: Does Virginia tax the profit from selling your home?.

Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Virginia tax withholding on IRA and 401(k) withdrawals.

Taking money out of your TSP? How the state taxes it, from its own tax documents: Does Virginia tax TSP withdrawals?.

For a pension earned elsewhere or paid after you move: does Virginia tax out-of-state pensions.

Before the tax question, the Fairfax County employees’ pension options, DROP and refund rules, from the system’s own handbook: Fairfax County ERS retirement decisions.

For trust income specifically: does Virginia tax trust income.

Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Virginia have an inheritance tax?.

For dividends and interest specifically: does Virginia tax dividends and interest.

Making a gift or planning an estate? The state’s gift tax answer, from its own tax documents: Does Virginia have a gift tax?.

For annuity payments specifically: does Virginia tax annuity income.

Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does Virginia have an estate tax?.

For military retired pay: does Virginia tax military retirement.

Saving for a child’s college? The state’s 529 break has its own page: Virginia 529 plan tax deduction.

For the sale of stocks, funds or real estate: does Virginia tax capital gains.

For 401(k) and IRA withdrawals specifically: does Virginia tax 401(k) and IRA withdrawals.

The state’s income tax schedule: the Virginia income tax rate for 2026.

More on Virginia: Intestate Succession in Virginia, IRA Creditor Protection in Virginia and Is a Living Trust Worth It in Virginia?

How Virginia taxes retirement income (statute-cited)

Income tax	Graduated 2%–5.75%; the top rate starts at $17,000, so most retirement income is effectively taxed at 5.75%
Social Security	Not taxed (subtracted from federal AGI)
Age Deduction (Va. Code §58.1-322.03)	Born on/before Jan 1, 1939: full $12,000. Age 65+ born after: $12,000 reduced $1-for-$1 by adjusted FAGI (excluding taxable SS) over $50,000 single / $75,000 married combined — fully gone at $62,000 for singles. The phaseout is the part most guides skip
Military retirement	Up to $40,000 per veteran for TY2025 and after (Va. Code §58.1-322.02(18); phased in $10k→$40k over 2022–25, age-55 requirement removed from TY2024). May be taken together with the age deduction when you qualify for both
Estate / inheritance tax	None (Virginia Tax says the state no longer has an estate tax or inheritance tax, though certain remainder interests are still subject to the inheritance tax; the old estate tax equaled the federal credit for state death taxes, which was eliminated)

Reality check on the age deduction: a single 65+ retiree with $60,000 of non-SS income keeps only $2,000 of the deduction; at $62,000 it is gone entirely. Virginia’s headline benefits skew toward military retirees and lower-income seniors.

The probate tax — and what settling an estate costs

Virginia taxes probate itself: 10¢ per $100 of estate value (Va. Code §58.1-1712), with no tax on estates of $15,000 or less, and localities may impose a local tax equal to one-third of the state tax: a $500,000 probate estate pays about $500 state plus about $167 where a locality imposes it. Personal representatives receive “reasonable compensation” (Va. Code §64.2-1208), which Commissioners of Accounts assess against published guideline percentage scales. Small estates: $75,000 of personal property by affidavit after a 60-day wait (Va. Code §64.2-601). Context: probate cost by state · small-estate limits by state · will vs. trust calculator.

Is Virginia a good state to retire in for taxes?

Split by profile: military retirees do very well — $40,000 per veteran subtracted plus untaxed Social Security covers most or all of a typical military retirement. Civilian retirees with moderate-to-high income fare worse than in neighboring North Carolina: the 5.75% rate starts low, the age deduction phases out by $62,000, and IRA/401(k)/pension income gets no general exclusion. No tax at death and a modest probate tax keep end-of-life costs reasonable.

Virginia is one of 43 jurisdictions that do not tax Social Security at any income level in 2026. The other 8 exempt benefits only up to an income or age limit. Full rules and statutes: the 51-state table.

Virginia vs. its neighbors

State	Social Security	Pension / 401(k) / IRA	Estate tax	Inheritance tax
Virginia	Not taxed	Taxable; age deduction up to $12,000 (income-tested)	None	None
North Carolina	Not taxed	Taxed at flat 3.99% (2026)	None (repealed 2013)	None
Maryland	Not taxed	Pension exclusion up to $40,600 for 2026 at 65+ (not IRAs)	Yes — $5M exemption	Yes — 10% collateral heirs
Tennessee	Not taxed	Not taxed (no income tax)	None	None

Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.

Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Virginia may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.

Finding a financial advisor in Virginia

Per the SEC’s July 2026 Investment Adviser roster, Virginia has 298 SEC-registered advisory firms (#13 nationally) managing $580.0 billion (#23 by AUM). Full breakdown: Virginia advisor statistics. Reviewing fee structures before or after a move: fee-drag calculator.

Thinking about moving?

Four taxes change when you move state in retirement, not one: income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Corridor comparisons involving Virginia:

Leaving Virginia? See leaving Virginia in retirement.

Compare any two states with the retirement tax comparison tool, or browse all corridors at the relocation hub.

What probate costs in Virginia

Virginia law sets no percentage for probate compensation; it allows a fiduciary “a reasonable compensation in the form of a commission on receipts or otherwise.” Commissioners of Accounts apply their own guidelines. Fairfax County’s, for example, allow 5% of the first $400,000 of probate inventory value, 4% of the next $300,000, 3% of the next $300,000 and 2% of the balance over $1,000,000 (amounts over $10,000,000 by agreement with the Commissioner), plus 5% of income receipts, and the will controls when it sets the compensation. And the small-estate shortcut of $75,000 does not clear a solely owned house on its own, which is the detail most guidance omits. Full detail with the governing statute, the court filing fee and the threshold: Virginia probate cost. To price a specific estate, use the probate cost calculator.

Cite or share this guide

Suggested citation: Clear Money Guide, “Virginia Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/virginia-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.

Figures verified against Va. Code §§58.1-320, 58.1-322.02, 58.1-322.03, 58.1-1712, 58.1-1718, 64.2-601 and 64.2-1208, and the Virginia Department of Taxation subtractions, military-benefits and probate-tax pages on September 30, 2026; the Maryland pension-exclusion figure, the estate-tax repeal date, and the SEC adviser roster figures were not re-checked.

Virginia Retirement Taxes (2026): The Age Deduction, the $40,000 Military Subtraction, and the Probate Tax

What this state guide covers