Does Virginia tax pensions and retirement income?
Taxed, with narrow exceptions
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.
In the state's own words
Copied word for word from the official document linked below each quote:
“With a few exceptions, if a source of income is taxable at the federal level, it’s taxable to Virginia as well.”
“If you were born on January 1, 1939, or earlier, you can subtract $12,000 If you were born on January 2, 1939, or later, the amount of allowed subtraction is based on your income.”
And Social Security?
No. Virginia exempts Social Security; you subtract any amount that was in your federal adjusted gross income. The Virginia Social Security page quotes the rule.
Federal tax still applies
Whatever Virginia does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) 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.
- Virginia Taxes and Your RetirementVirginia Tax. Read on November 12, 2026.