Virginia does not tax Social Security benefits, regardless of your total income or filing status

Virginia is one of 38 states that does not impose a state income tax on Social Security retirement, survivor, or disability benefits. If you receive Social Security payments and live in Virginia, you will not owe Virginia state income tax on those payments. This applies whether you are retired, disabled, or receiving benefits as a survivor.

However, your Social Security benefits may still be taxable at the federal level, depending on your combined income. Federal taxation of Social Security is separate from state taxation, and Virginia's exemption does not change your federal tax obligations.

Key Takeaways

  • Virginia does not tax Social Security benefits at the state level, so you will not owe Virginia income tax on your monthly payments.
  • Federal taxation of Social Security depends on your combined income (Social Security plus other income), not on state residency.
  • If you move to Virginia from another state that taxes Social Security, you will stop owing state tax on those benefits once you establish residency.
  • You should still file a federal tax return if your combined income exceeds the threshold, even though Virginia will not tax your benefits.

How Virginia's Social Security Tax Exemption Works

Virginia's tax code excludes all Social Security benefits from state taxable income. This means the Virginia Department of Taxation does not count your Social Security payments when calculating what you owe in state income tax. The exemption is automatic — you do not need to request it or file a separate form.

This exemption applies to all types of Social Security income: retirement benefits, Supplemental Security Income (SSI), Supplemental Security Disability Insurance (SSDI), and survivor benefits paid to family members. If you receive any of these payments and live in Virginia, none of them are subject to Virginia state income tax.

Federal Taxation of Social Security Is Separate

Even though Virginia does not tax your benefits, the federal government may. Up to 85 percent of your Social Security benefits can be subject to federal income tax, depending on your combined income. Combined income means your adjusted gross income plus nontaxable interest plus half of your Social Security benefits.

The federal thresholds are: if you are single and your combined income is between $25,000 and $34,000, you may owe federal tax on up to 50 percent of your benefits. If your combined income exceeds $34,000, you may owe tax on up to 85 percent. If you are married filing jointly, the thresholds are $32,000 and $44,000. These thresholds have not changed since 1984.

Your Social Security statement will show your benefit amount, but it will not calculate your federal tax liability. You or a tax preparer will need to determine this using IRS worksheets or tax software.

What Counts as Income for Federal Tax Purposes

Combined income includes wages, self-employment income, interest, dividends, capital gains, rental income, and distributions from retirement accounts like IRAs and 401(k)s. It also includes income from pensions, annuities, and part-time work. Certain types of nontaxable interest — such as interest from municipal bonds — still count toward the combined income threshold for Social Security taxation purposes.

This is why some retirees with modest Social Security benefits but significant other income end up owing federal tax on their benefits. A person receiving $20,000 in Social Security and $30,000 in pension income has a combined income of $40,000 (plus half their Social Security), which may push them over the federal threshold.

If You Move to Virginia from Another State

Thirteen states currently tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. If you move to Virginia from one of these states, you will no longer owe state income tax on your Social Security once you establish Virginia residency.

Residency is typically established when you move your permanent home to Virginia, register to vote there, and obtain a Virginia driver's license or ID. You may still owe tax to your former state for the portion of the year you lived there, so check with that state's tax authority about your filing obligations for the year you moved.

Filing a Federal Tax Return in Virginia

Even though Virginia does not tax your Social Security, you may still need to file a federal tax return. The IRS requires you to file if your gross income (including Social Security) exceeds certain thresholds. For 2024, a single person age 65 or older must file if their gross income is $15,000 or more. A married couple filing jointly, where at least one spouse is 65 or older, must file if their combined gross income is $27,700 or more.

These thresholds include Social Security income in the calculation. If you have other income sources — pensions, part-time work, investment income — you are more likely to exceed the threshold. Even if you do not owe federal tax, filing a return may allow you to claim refundable credits like the Earned Income Tax Credit or the Additional Child Tax Credit.

Frequently Asked Questions

Do I have to file a Virginia state income tax return?

No. Virginia does not require you to file a state return if your only income is Social Security. However, if you have other income sources — such as wages, pensions, or investment income — you may need to file. Check the Virginia Department of Taxation website or contact them directly to confirm your filing requirement based on your total income.

Will I owe Virginia tax if I work part-time and receive Social Security?

No tax on the Social Security itself. However, your part-time wages are subject to Virginia income tax. Virginia taxes wages at rates ranging from 2 percent to 5.75 percent depending on your income bracket. Your Social Security benefits remain exempt, but your wages will not be.

What if I receive both Social Security and a pension?

Virginia does not tax your Social Security, but it does tax pension income. You will owe Virginia state income tax on your pension payments. However, Virginia offers a tax deduction for certain military pensions and some government employee pensions, so check whether your pension qualifies for an exemption.

Do I need to report my Social Security income to Virginia?

If you file a Virginia state return, you must report your Social Security income on the return, even though it is exempt from tax. This allows Virginia to verify that you meet the residency and income requirements for other tax benefits you may claim. The exemption is applied after you report it.

Can I deduct Medicare premiums from my Virginia taxes?

No. Virginia does not allow a deduction for Medicare premiums paid from Social Security or from other sources. However, the federal government allows you to deduct Medicare premiums as a medical expense if you itemize deductions on your federal return and your total medical expenses exceed 7.5 percent of your adjusted gross income.