Virginia does not tax Social Security benefits
Virginia exempts all Social Security retirement, survivor, and disability benefits from state income tax. If Social Security is your only income source, you owe nothing to Virginia. If you receive Social Security along with other income — wages, pensions, or investment earnings — you pay Virginia tax only on that other income, not on the Social Security portion.
This exemption applies whether you file as a single filer, married filing jointly, or any other filing status. It also applies to federal railroad retirement benefits, which are treated the same way as Social Security for Virginia tax purposes.
The federal government may still tax your Social Security benefits depending on your total income, but that is separate from Virginia state tax. Virginia's exemption means you will not see Social Security withheld on your state return.
Key Takeaways
- Virginia does not tax Social Security retirement, survivor, or disability benefits under any circumstances.
- If you have other income besides Social Security, you pay Virginia tax only on that other income.
- Federal railroad retirement benefits receive the same tax treatment as Social Security in Virginia.
- The federal government may still tax your Social Security depending on your total income, but Virginia will not.
- You do not need to report Social Security income on your Virginia tax return.
How Virginia treats other retirement income
While Social Security is fully exempt, Virginia taxes other types of retirement income differently. Military pensions, federal employee pensions, and private pension income are all subject to Virginia state tax unless you meet specific age or service requirements.
If you are 59½ or older, Virginia allows you to exclude up to $12,000 of retirement income per year from taxation. This applies to distributions from IRAs, 401(k) plans, and similar accounts. The exclusion does not explore to Social Security, because Social Security is already exempt entirely.
If you receive a pension from the military or a federal civilian job, you may may have access to for a different exclusion. Military retirees can exclude military retirement pay from Virginia tax. Federal employees who retired under the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) can also exclude their pension income under certain conditions.
What income counts toward federal taxation of Social Security
Even though Virginia does not tax Social Security, the federal government may. Whether your Social Security is taxable at the federal level depends on your "combined income," which is calculated as your adjusted gross income plus nontaxable interest plus half of your Social Security benefits.
If your combined income exceeds $25,000 (single filer) or $32,000 (married filing jointly), up to 50 percent of your Social Security benefits become subject to federal income tax. If your combined income exceeds $34,000 (single) or $44,000 (married filing jointly), up to 85 percent of your benefits may be taxable.
Common sources of income that count toward this threshold include wages, self-employment income, pensions, interest, dividends, capital gains, and distributions from retirement accounts. Roth IRA distributions do not count, but traditional IRA and 401(k) distributions do.
Filing your Virginia return with Social Security income
You do not report Social Security income on your Virginia tax return. When you file Form 760 (Virginia's individual income tax return), you list only the income that Virginia taxes — wages, interest, dividends, pensions, and other sources.
If you file a federal return (Form 1040), you will report your Social Security benefits there, because the federal government needs that information to calculate whether any portion is taxable. Your Virginia return does not require this information.
If you are unsure whether you need to file a Virginia return at all, the threshold depends on your age and filing status. Virginia generally requires you to file if your income exceeds the standard deduction for your situation. Since Social Security does not count toward Virginia income, you may not need to file even if you receive benefits, depending on your other income.
Withholding and estimated tax payments
Social Security benefits are not subject to Virginia withholding. If you receive only Social Security and have no other income, no Virginia tax will be withheld, and you will not owe anything when you file.
If you have other income — such as wages or a pension — you may have Virginia tax withheld from that income. Check your pay stub or pension statement to see whether Virginia tax is being taken out. If you are self-employed or have income with no withholding, you may need to make estimated tax payments to Virginia quarterly.
You can adjust your withholding by filing Form VA-4 with your employer or pension provider. This form tells them how much Virginia tax to take from your paychecks.
Moving to or from Virginia with Social Security
If you move to Virginia and already receive Social Security, your benefits remain the same. Virginia will not tax them, regardless of when you moved to the state or how long you have lived there.
If you move out of Virginia, Social Security still will not be taxed by Virginia. Once you establish residency in another state, you follow that state's rules. Some states tax Social Security; most do not. Check the tax rules of your new state to understand how your benefits will be treated.
For Virginia tax purposes, residency is determined by where you live on December 31 of the tax year. If you moved partway through the year, you may owe tax to Virginia for the months you lived there and to another state for the months you lived there.
Frequently Asked Questions
Do I have to file a Virginia tax return if Social Security is my only income?
No. Since Virginia does not tax Social Security, you have no Virginia income to report. You file only if you have other income — wages, pensions, interest, or dividends — that exceeds Virginia's filing threshold for your age and status.
Will my Social Security be taxed if I still work?
Virginia will not tax your Social Security, even if you work. However, the federal government may tax your Social Security if your combined income (wages plus half your benefits) exceeds the federal threshold. Virginia state tax applies only to your wages, not your benefits.
What if I receive both a pension and Social Security?
Virginia taxes your pension income but not your Social Security. If you are 59½ or older, you can exclude up to $12,000 of retirement income per year, which may include part of your pension. Social Security is already fully exempt and does not count toward this limit.
Does Virginia tax federal railroad retirement benefits?
No. Federal railroad retirement benefits receive the same treatment as Social Security in Virginia and are fully exempt from state tax. The federal government may tax them depending on your total income.
Can I claim Social Security income as a deduction on my Virginia return?
You do not report Social Security on your Virginia return at all, so there is nothing to deduct. The exemption is automatic — Virginia straightforward does not tax these benefits.