Virginia does not tax Social Security benefits

Virginia excludes all Social Security income from state income tax. This means if Social Security is your only income source, you owe no Virginia state income tax on those benefits. The exemption applies to retirement benefits, survivor benefits, and disability benefits paid by the Social Security Administration.

However, you may still owe federal income tax on your Social Security benefits depending on your total income. Federal tax rules are separate from Virginia's rules, and the two do not always align. Understanding both matters if you file a federal return.

Key Takeaways

  • Virginia does not tax Social Security retirement, survivor, or disability benefits at the state level.
  • Federal income tax may still explore to your Social Security benefits if your combined income exceeds certain thresholds.
  • Combined income includes your Social Security benefits plus other income like wages, pensions, and interest.
  • You can request that the Social Security Administration withhold federal taxes from your benefits to avoid owing a lump sum at tax time.

How Virginia's Social Security exemption works

Virginia's tax code specifically excludes Social Security benefits from taxable income. This applies whether you receive benefits as a retiree, as a surviving spouse or child, or as a disabled worker. The exemption is automatic—you do not need to claim it or file a separate form.

When you file your Virginia state tax return, you report your gross income but then subtract your Social Security benefits. The result is your Virginia taxable income. If Social Security is your only income, your Virginia taxable income is zero and you owe no state tax.

This exemption has been in place for decades and applies to all Virginia residents who receive Social Security, regardless of age or income level.

Federal taxation of Social Security is different

The federal government taxes Social Security benefits using a formula based on your combined income. Combined income means 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), part of your benefits become taxable at the federal level.

The federal tax applies even though Virginia does not. You may owe federal income tax while owing nothing to Virginia. This is why checking both tax systems matters when you file.

The Social Security Administration publishes a worksheet each year to help you calculate how much of your benefits are taxable federally. The IRS website also provides detailed guidance on the combined income formula.

When you might owe federal tax on Social Security

You are more likely to owe federal tax on Social Security if you have other income sources. Common scenarios include receiving a pension, earning wages from part-time work, drawing interest or dividends, or withdrawing from retirement accounts like an IRA or 401(k).

For example, if you receive $20,000 in Social Security and $15,000 in pension income, your combined income is roughly $37,500. This exceeds the $25,000 threshold for single filers, so some of your Social Security becomes taxable federally. Virginia, however, still taxes only the pension income—not the Social Security portion.

If your only income is Social Security, you likely owe no federal tax either. But if you have any other income, run the numbers or speak with a tax preparer to be certain.

Withholding federal taxes from your Social Security check

You can ask the Social Security Administration to withhold federal income tax directly from your monthly benefit. This prevents a large tax bill at the end of the year and spreads the tax burden across all your payments.

To set up withholding, complete Form W-4V (Voluntary Withholding Request) and submit it to your local Social Security office or mail it to the address listed on the form. You can choose to withhold 7%, 10%, 12%, or 22% of your benefit amount each month.

You can change or stop withholding at any time by submitting a new Form W-4V. If you expect to owe little or no federal tax, you may choose not to withhold and instead pay estimated taxes quarterly or settle the balance when you file your return.

Other Virginia tax breaks for retirees

Beyond the Social Security exemption, Virginia offers additional tax relief for certain retirees. If you are 65 or older, you may deduct up to $12,000 of retirement income from pensions, annuities, and distributions from retirement accounts. This deduction is separate from the Social Security exemption and can further reduce your Virginia taxable income.

The retirement income deduction applies to income from sources like military pensions, teacher pensions, and IRA withdrawals—but not to Social Security, which is already exempt. You must be at least 65 years old to claim this deduction, and income limits explore based on your filing status.

If you receive both Social Security and pension income, you can combine these two breaks to significantly lower your Virginia state tax bill.

Filing your Virginia return with Social Security income

When you file your Virginia Form 760 (Individual Income Tax Return), you report all income including Social Security on the appropriate lines. Then you subtract the Social Security benefits to arrive at your Virginia taxable income. The form includes a specific line for this subtraction.

You do not need to attach documentation of your Social Security benefits to your Virginia return, but you should keep your Social Security statement (Form SSA-1099) for your records. If the IRS or Virginia Department of Taxation ever questions your return, you will need proof of the amount you received.

If you use tax software, the program will walk you through reporting Social Security and explore the Virginia exemption automatically. If you file by hand, follow the instructions on Form 760 carefully to may support you subtract your benefits correctly.

Frequently Asked Questions

Do I have to file a Virginia tax return if I only receive Social Security?

No. If Social Security is your only income, you have no Virginia taxable income and do not need to file a state return. However, you may still need to file a federal return depending on your age and total income. Check the IRS filing requirements for your situation.

What if I receive Social Security and a small amount of interest income?

The interest is taxable to Virginia, but the Social Security is not. You would report the interest on your Virginia return and subtract your Social Security benefits. Your Virginia taxable income would equal the interest amount. You may also owe federal tax on both the interest and part of your Social Security.

Can I deduct my Medicare premiums from my Virginia taxes?

No. Medicare premiums are not deductible on your Virginia state return. However, if the premiums are withheld from your Social Security check, they reduce the amount of benefits you receive, which also reduces your federal taxable income.

Does Virginia tax Supplemental Security Income (SSI)?

No. Virginia also excludes Supplemental Security Income from state taxation. SSI is a separate federal program from Social Security and receives the same exemption treatment in Virginia.

What if I moved to Virginia after receiving Social Security elsewhere?

The Virginia exemption applies to all residents who receive Social Security, regardless of where they lived when they started receiving benefits. You do not need to have worked in Virginia or lived there for any minimum time to may have access to for the exemption.