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2026 rules · verified against Virginia's primary source
Virginia partially exempts military retirement pay (up to about $40,000); the rest is taxable.
Military retirees (and surviving spouses) may subtract up to $40,000 of military benefits from Virginia taxable income; no age requirement. The $40,000 cap is the fully phased-in amount for 2025 and later returns.
Treatment
partially exempt
Exemption up to
$40,000
Top marginal rate
5.75%
Source: https://www.tax.virginia.gov/military-benefits-faq · verified July 2026
Estimated Virginia state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
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