Does Virginia tax military retirement?

Partly. Each retiree subtracts up to $40,000 a year (2025 and later); anything above is taxed at up to 5.75%.

Is SBP taxed in Virginia?

Survivor Benefit Plan payments to a surviving spouse count under the same $40,000 military subtraction.

Do 100% disabled veterans pay property tax in Virginia?

No real estate tax on their home, if the VA rates them 100% service-connected, permanent and total.

Virginia retirement taxes in 2026: military retired pay, Social Security and property tax

Short answer

Virginia does not tax Social Security. Military retired pay is partly exempt: each retiree can subtract up to $40,000 a year (2025 and later), including Survivor Benefit Plan payments to a surviving spouse. Above that, it's taxed at Virginia's rates, which top out at 5.75%. Veterans rated 100% service-connected, permanent and total pay no real estate tax on their home.

Not tax advice. Rules change; confirm with Virginia Tax, your local Commissioner of the Revenue or a tax professional.

Virginia at a glance (2026)

	Virginia
State income tax	2% to 5.75% (5.75% over $17,000 of taxable income)
Standard deduction	$8,750 single / $17,500 joint (2025 and 2026)
Social Security	Not taxed
Military retired pay	Up to $40,000 per person subtracted (any age)
Survivor Benefit Plan	Counts under the same $40,000 subtraction for a surviving spouse
Other pensions, IRA, 401(k)	Taxed; age deduction up to $12,000 at 65+, income-tested
65+ property tax relief	Set by each city or county
100% P&T disabled veteran	Full real estate tax exemption on the home; one vehicle exempt
Average property tax	About 0.78% of home value a year

Income tax

Rates are 2% on the first $3,000, 3% to $5,000, 5% to $17,000 and 5.75% above that. The standard deduction is $8,750 single or $17,500 joint for 2025 and 2026. There's no local income tax. Sources: Va. Code §58.1-320; Virginia Tax, 2025 Form 760PY instructions; 2026 Legislative Summary (July 2026).

Military retired pay

Each retiree can subtract up to $40,000 a year of military retirement income, at any age (2025 and later). The cap rose from $10,000 (2022) to $20,000 (2023) to $30,000 (2024). Medal of Honor recipients subtract all of it. Survivor Benefit Plan payments to a surviving spouse count under the same subtraction. Income you subtract here can't also get another deduction, such as the age deduction.

Proposals to make military retirement fully exempt were introduced in 2026 but not enacted. Source: Va. Code §58.1-322.02(18); Virginia Tax, 2026 Legislative Summary.

Other retirement income

Pensions, IRAs and 401(k)s are taxed. At 65 or older, you can deduct up to $12,000 per person, reduced $1 for every $1 of adjusted federal AGI above $50,000 (single) or $75,000 (married). It's gone at about $62,000 single. Source: Virginia Tax, Subtractions; Va. Code §58.1-322.03.

Property tax relief for 65+

Virginia leaves senior relief to each city or county, which sets its own income and asset limits. Two examples near Hampton Roads bases:

Virginia Beach: 65+ or totally and permanently disabled, household income up to $87,419 for an exemption (up to $114,062 for a freeze), assets up to $350,000 not counting the home. Apply February 1 to June 30.
Norfolk: 65+ or disabled, income up to $67,000, net worth up to $350,000. Lower incomes get an exemption; higher incomes get a deferral. Deadline June 1.

Sources: Va. Code §58.1-3210; Virginia Beach Commissioner of the Revenue; City of Norfolk.

Disabled veterans

Real estate: veterans rated 100% service-connected, permanent and total pay no real estate tax on their home and at least one acre. Virginia's Department of Veterans Services says 100% through Individual Unemployability, if permanent and total, also qualifies. An unremarried surviving spouse keeps it and can move it to a new home. You can claim back years to your rating date (as far back as 2011).
Vehicle: one car or pickup owned by a 100% P&T veteran is exempt from personal property tax. This one doesn't pass to a surviving spouse.
Line-of-duty surviving spouses: the home of a spouse of a service member who died in the line of duty is exempt (expanded by voters in 2024).
No partial exemption for lower ratings at the state level.

Apply with your local Commissioner of the Revenue. A state workgroup is reviewing the program's cost, with a report due November 15, 2026. Sources: Va. Code §58.1-3219.5, §58.1-3668 and §58.1-3219.9; Virginia Department of Veterans Services.

Common mistakes

Assuming military retired pay is fully exempt. The cap is $40,000 per person.
Using the same income twice. Military retirement can't also take the age deduction.
Missing local deadlines. Norfolk's is June 1 and Virginia Beach's is June 30.
Not claiming back years for the 100% P&T exemption.

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Federal rules: Is military retirement taxable?

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FAQ

Does Virginia tax military retirement?: Partly. Each retiree subtracts up to $40,000 a year (2025 and later); anything above is taxed at up to 5.75%.
Does Virginia tax Social Security?: No.
Is SBP taxed in Virginia?: Survivor Benefit Plan payments to a surviving spouse count under the same $40,000 military subtraction.
Do 100% disabled veterans pay property tax in Virginia?: No real estate tax on their home, if the VA rates them 100% service-connected, permanent and total.

Sources

Last reviewed October 21, 2026. Not tax advice.