Updated July 25, 2026. Quick answer (2026): If you are weighing a move out of Virginia in retirement, the entire case for leaving Virginia is income tax — a top rate of 5.75% on withdrawals. Virginia levies no estate tax and no inheritance tax, so there is no ‘death tax’ to escape. Four taxes change when you move — income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. This page prices all four for Virginia, then links a worked comparison for each destination.
What Virginia actually charges a retiree
| Tax | Virginia position, 2026 |
|---|---|
| State income tax | graduated, 2% to 5.75% top rate (top bracket starts at $17,000) |
| Social Security | Not taxed (subtracted from federal AGI). |
| Pension / 401(k) / IRA | Pensions, 401(k) and IRA withdrawals taxable; |
| Estate tax | none (repealed for deaths on/after 7/1/2007) |
| Inheritance tax | none |
| Probate fee model | reasonable-fee |
| Probate filing fee | Probate tax of 10 cents per $100 of estate value, with no tax on estates of $15,000 or less (Va. Code §58.1-1712); localities may add up to one-third of the state tax (§58.1-1718); plus modest clerk recordation fees (e.g., $25 list of heirs, §64.2-509/58.1 fees). Verified on law.lis.virginia.gov. |
| Small-estate limit | $50,000 — Virginia Small Estate Act affidavit for personal property (Va. Code §64.2-601); 60-day wait. Widely documented; cite well established. |
The mistake Virginia retirees make
Because Virginia has a high headline income-tax rate, people assume it also has a punishing estate tax. It does not — Virginia levies neither an estate tax nor an inheritance tax. So the saving from moving is real but single-sourced: it is income tax on withdrawals and nothing else. If you are moving to a state that does levy a death tax, you can end up worse off overall.
Where Virginia retirees go, and what each move is worth
Destinations below are drawn from documented retiree migration. Each links a worked, statute-cited comparison of all four taxes for that specific pair.
- Virginia to North Carolina — top rate falls; compare the death taxes too
- Virginia to South Carolina — top rate falls; compare the death taxes too
- Virginia to Florida — stop paying income tax on withdrawals
- Virginia to Tennessee — stop paying income tax on withdrawals
Getting the sequence right
Leaving Virginia cleanly is a sequencing problem as much as a tax one: domicile tests, what happens to property you keep behind, and the order of conversions and sales. See finding an advisor for a cross-state move for what to look for and the five questions to ask first.
Will Virginia still tax me after I move away?
Not on your retirement withdrawals, once you genuinely change domicile — but that is a harder test than a change of address, and what you leave behind stays in reach.
- Domicile is a test, not an address. Virginia can audit a departing resident. Days present, licence, registrations, where your advisers are and where you keep what you value all count.
- Property left behind stays reachable. Keeping a home in Virginia can keep part of your estate inside Virginia rules.
- Sequence any Roth conversion. It is taxed where you are domiciled in the year you convert — see how all 51 jurisdictions tax Roth conversions.
Full Virginia detail: Virginia retirement taxes. All corridors: retirement tax relocation hub.
Getting the order right
Move timing, conversion sequencing and estate exposure interact, and the order changes the total. Know what advice should cost before you buy it — see our advisor cost guide.
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Cite or share this guide
Suggested citation: Clear Money Guide, “Leaving Virginia in Retirement: the 2026 Tax Position,” statute-cited; clearmoneyguide.com/leaving-virginia-retirement-taxes/. Free to cite with attribution. Download the full dataset as CSV, or contact contact@clearmoneyguide.com for custom cuts.
Primary sources
- Va. Code § 58.1-322.03 (age deduction and SS subtraction)
- Va. Code § 58.1-322.02(24) (military benefits subtraction)
- Virginia Tax: Subtractions page and Military Benefits FAQ
- Va. Code §64.2-1208
- Va. Code §64.2-601
- Va. Code §58.1-1712
- Va. Code §58.1-1718