Virginia retirement income tax (2026)

How Virginia taxes retirement income

Virginia taxes income in 4 brackets for a married couple filing jointly, from 2% to 5.75%; the top rate starts at $17,000 of taxable income^[1]. For the example couple below, the last dollar of taxable income falls in the 5.75% bracket.

Before the rate applies, the simulator subtracts a standard deduction of $17,500 on a joint return ($8,750 single) and personal exemptions of $1,860 ($930 single).

Social Security benefits are exempt from Virginia income tax: none of the benefit enters the state base, as in 22 of the 24 states covered here that tax income.

The simulator applies no retirement-income exclusion in Virginia: IRA and 401(k) withdrawals and pensions are taxed like other income. Any narrower break in state law that the simulator does not apply is listed under “What this page leaves out”.

Long-term capital gains and qualified dividends are taxed as ordinary income, at the same rates.

For single filers the simulator halves the joint deduction and exemption but keeps the joint bracket widths. Where Virginia’s real single brackets are narrower, that understates a single filer’s tax.

Put together, the example couple below owes $2,079 in Virginia, the 19th lowest of the 24 states covered here that tax income.

2026 brackets

Bracket thresholds are held at these values in every simulated year. The simulator does not index state amounts for inflation.

Worked example

A retired couple, both 67, filing jointly, with $48,000 of Social Security, $40,000 of IRA withdrawals and a $20,000 pension. The figures are computed when the page is built, by the same state-tax function the simulator runs.

The couple’s next $1,000 of IRA withdrawals would add $58 of Virginia tax.

A single retiree, 67, with half those amounts ($24,000 of Social Security, $20,000 of IRA withdrawals, a $10,000 pension) owes $911, 1.69% of gross income, against the couple’s 1.93%.

As IRA withdrawals rise

The same couple, with Social Security and the pension unchanged, taking more from their IRAs (a larger withdrawal, a required minimum distribution or a Roth conversion all count as distributions here):

Neighbouring states

The example couple’s state tax in Virginia and in the neighbouring states covered here, same income and ages:

Against Virginia, the couple would pay more in Maryland (+$156); less in Kentucky (−$2,079), Tennessee (−$2,079), North Carolina (−$702). With $200,000 of IRA withdrawals instead of $40,000, they would owe $11,279 in Virginia, against Maryland ($10,063), Kentucky ($5,287), Tennessee ($0), North Carolina ($7,761).

What this page leaves out

What the simulator does and does not handle for Virginia, item by item^[1]:

• 2%–5.75% brackets (top at $17,000, not indexed).
• $17,500 married filing jointly standard deduction (2025–2026, $8,750 single), $930/person exemption.
• Social Security exempt.
• The $12,000/person age-65 deduction is NOT modeled: it is reduced dollar-for-dollar by joint AFAGI over $75,000, so most simulated retirees would get $0.

In every state the simulator also leaves out credits, itemized deductions, deductions that phase out with income, local income taxes, surtaxes and any deduction for federal tax paid. It holds state amounts fixed and does not index them for inflation.

See it over a full plan

Related

• All 33 states compared
• State taxes in retirement: the exemptions that change the map
• The Social Security tax torpedo
• The RMD bomb: how pre-tax savings become forced income
• Roth ladder: how a Roth conversion ladder works
• Taxes in retirement: the topic guide
• Marginal-rate map (federal and state tax on the next dollar)