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

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, taxes everything else at graduated rates reaching 5.75% by just $17,000 of income, and offers two offsets with very different personalities: 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 — a figure many pages, including an old ranking state article, still understate. Virginia also levies something almost no state has: a literal probate tax on estates.

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(24); phased in $10k→$40k over 2022–25, age-55 requirement removed from TY2024). Cannot be stacked with the age deduction on the same income
Estate / inheritance tax	None (estate tax repealed for deaths on/after 7/1/2007)

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 add up to one-third more — a $500,000 probate estate pays about $500 state + up to ~$167 local. Personal representatives receive “reasonable compensation” (Va. Code §64.2-1208), which Commissioners of Accounts assess against published guideline percentage scales. Small estates: $50,000 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 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 (repealed 2007)	None
North Carolina	Not taxed	Taxed at flat 3.99% (2026)	None (repealed 2013)	None
Maryland	Not taxed	Pension exclusion up to $41,200 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.

Disclosure: the button above routes to an advertising partner and Clear Money Guide may earn a referral fee. See our Affiliate Disclosure.

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 sets probate compensation by a “reasonable fee” standard with no percentage schedule, so anyone quoting a firm figure is estimating. And the small-estate shortcut of $50,000 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.

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