Updated October 16, 2026. Quick answer: Yes, unless you elect no withholding on Form VA-4P. Virginia’s form says “your payer is required to withhold Virginia income tax from your payments”, with an election of no withholding available on stated grounds.
Virginia pension withholding at a glance
| Item | What the documents say |
|---|---|
| Is state withholding required on regular pension payments? | Yes, unless you file Form VA-4P electing no withholding on a stated ground |
| Default rate if you give the payer no form | With no VA-4P on file the payer withholds as if you had claimed zero exemptions, from the withholding tables |
| Lump sum or one-time payment | A nonperiodic payment, or one subject to mandatory federal withholding of 20% or 28%, is withheld at 4% |
| Form to start, change or stop it | Form VA-4P (Rev. 04/26), filed with the payer |
| Changed for 2026? | Not stated: the form (Rev. 04/26) and the employer guide (Rev. 10/26) describe no change to pension withholding |
What the Virginia documents say
Form VA-4P says “your payer is required to withhold Virginia income tax from your payments”. The rule applies to pension and annuity payments to residents when federal withholding is required; IRA and SEP payments from financial institutions are carved out.
With no Form VA-4P on file, Virginia’s guide says the payer must “withhold Virginia income tax as if no exemptions had been claimed”. For nonperiodic payments and payments under mandatory federal withholding the guide says to “withhold Virginia tax at a rate of 4%”.
“Form VA-4P should be filed before pension or annuity distributions begin”. On line 4 you can elect no withholding, for example after electing no federal withholding, or when you expect Virginia adjusted gross income under $11,950 single or $23,900 married. Line 2 adds withholding and line 3 requests voluntary withholding.
What the printed rate means in dollars
For a $50,000 nonperiodic payment: 4% of $50,000 is $2,000 (computed as $50,000 times 4%).
These are illustrations of the rate the state document prints, not a prediction of how your payer will calculate or what you will owe at filing.
What a mover should know
This page is about Virginia as a state of residence. An instruction line written for a nonresident or part-year filer is not the rule for a resident, and none of the documents read settles a part-year or two-state case, so check each state’s own rule. The federal side is the same everywhere; CMG’s federal 20% withholding on a pension lump sum page covers it, state tax withholding on IRA and 401(k) withdrawals in Virginia covers the account side, and state withholding on retirement withdrawals lists the other states checked.
What the documents do not say
- The documents read do not describe a 2026 change to pension withholding.
Common mistakes
- Assuming a federal no-withholding choice means nothing is withheld for the state without checking the state certificate.
- Assuming the answer for one state applies to another, or that state withholding settles the state tax owed at filing.
Related: state tax withholding on IRA and 401(k) withdrawals in Virginia, Virginia retirement taxes, whether Virginia taxes pensions, state withholding on retirement withdrawals, and retirement withholding calculator.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for retirement income
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your pension income
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Form VA-4P Withholding Exemption Certificate for Recipients of Pension and Annuity Payments (with instructions): https://www.tax.virginia.gov/sites/default/files/taxforms/withholding/any/va-4p-any.pdf
- Income Tax Withholding Guide for Employers: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/employer-withholding-instructions.pdf
- IRS Tax Topic 413, Rollovers from retirement plans: https://www.irs.gov/taxtopics/tc413
Sources: the primary documents linked above, read on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.