Virginia Retirement Tax Guide for Richmond 55+ Buyers (2025)
Social Security, IRA withdrawals, pensions, military retirement, and property taxes — what Virginia actually taxes and what it does not.
Virginia is not a no-income-tax state. That is the most important sentence in this guide for buyers relocating from Florida, Texas, Tennessee, Nevada, or any other state without a broad income tax. Virginia taxes retirement income — selectively, with meaningful exemptions — and understanding exactly which income is taxed determines whether your retirement budget works as planned.
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| Income Type | Virginia Treatment | Notes |
|---|---|---|
| Social Security benefits | 100% exempt | Not taxed at Virginia state level regardless of amount |
| Military retirement pay | Up to $40,000 exempt | For Virginia residents 55+; verify current law |
| Traditional IRA distributions | Fully taxable | Taxed at 2%–5.75% depending on total income |
| 401(k) / 403(b) distributions | Fully taxable | Same rate as IRA distributions |
| Pension income (private) | Fully taxable | No private pension exemption in Virginia |
| Federal employee retirement (CSRS/FERS) | Fully taxable | Virginia does not exempt federal pensions |
| Roth IRA distributions | Generally exempt | Qualified distributions are tax-free at federal level, no Virginia tax |
Virginia Income Tax Rates
| Taxable Income | Virginia Tax Rate |
|---|---|
| $0 – $3,000 | 2% |
| $3,001 – $5,000 | 3% |
| $5,001 – $17,000 | 5% |
| Over $17,000 | 5.75% |
The Age Deduction for Residents 65+
Virginia provides an age deduction — a subtraction from Virginia adjusted gross income — for residents age 65 or older. For tax year 2025, the deduction is up to $12,000 per person if Virginia MAGI is $50,000 or less (single) or $75,000 or less (married filing jointly). The deduction phases out at higher income levels.
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Worked Examples
Military Retirement
As of 2025, Virginia residents who are 55 or older may subtract up to $40,000 of military retirement income from Virginia taxable income. For a household drawing $60,000 in military retirement, only $20,000 is taxable — an effective Virginia tax of roughly $1,000. This is a meaningful advantage compared to civilian pension treatment.
No Estate or Inheritance Tax
Virginia Filing Deadline: May 1
Virginia's state income tax filing deadline is May 1 — not April 15. Virginia and federal returns are filed separately; your Virginia return goes to the Virginia Department of Taxation.
Property Tax Senior Relief
Every county in Richmond's 55+ corridor — Goochland, New Kent, Hanover, Henrico, and Chesterfield — offers a senior property tax relief program for qualifying homeowners 65+. Apply through your county's Commissioner of the Revenue after closing. This benefit does not apply automatically.
This guide is for informational purposes only and does not constitute tax advice. Tax laws change; verify current rules with a Virginia-licensed CPA or tax attorney before making relocation decisions.
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Talk to a Richmond SpecialistRelated Research
- Richmond VA 55+ Communities Hub
- Richmond VA 55+ True Cost Guide
- Property Tax Comparison: All Five Counties
- Moving from Northern Virginia to Richmond
- Moving from New Jersey to Richmond
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