Does Virginia tax military retirement pay?
Partly taxed
Partly. Virginia's Military Benefits Subtraction lets you subtract up to $40,000 of eligible military benefits on 2025 and later returns ($30,000 for 2024).
In the state's own words
Copied word for word from the official document linked below each quote:
“$30,000 of eligible military benefits on your tax year 2024 return; and $40,000 of eligible military benefits on your tax year 2025 and later returns.”
Other retirement income in Virginia
Yes. Virginia generally taxes what is taxable federally, so pension and IRA distributions are usually taxable. People 65 and older may get an age deduction of up to $12,000, which shrinks with income for most. The Virginia pension page has the details, and the Virginia Social Security page covers Social Security. No. Virginia exempts Social Security; you subtract any amount that was in your federal adjusted gross income.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with Virginia Tax before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Military Benefits Subtraction FAQVirginia Tax. Read on November 13, 2026.