State guide
Does Virginia tax retirement income? IRAs, Roth conversions and Social Security (2026)
By Secure Retirement PlannerUpdated
If you retire in Virginia, your Social Security is not taxed, but pensions and IRA withdrawals are taxed, mostly at the top rate of 5.75%. Your Roth conversion is taxed as regular income too, at the same rate. That rate applies to Virginia taxable income over $17,000. Virginia starts with your federal adjusted gross income, and that includes your conversion.
If you or your spouse are 65 or older, there is a second cost to watch. Virginia's age deduction is up to $12,000 per person. It shrinks by $1 for every $1 your income goes over $75,000 if you are married ($50,000 single). Your conversion counts as income.
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The short version
- Virginia has no special break for your Roth conversion. The taxable amount is taxed like a pension or wages.
- Virginia's rates run from 2% to 5.75%, and the 5.75% rate starts at just $17,000 of taxable income.
- If you are 65 or older, your age deduction usually falls $1 for every $1 of income over $75,000 (married) or $50,000 (single).
- If you are married and both claim the income-based age deduction, you lose all $24,000 of it once your AFAGI reaches $99,000.
- Virginia does not tax your Social Security, and it doesn't count toward the age deduction phase-out.
Does Virginia tax retirement income?
Partly. Virginia does not tax your Social Security. Your pensions, IRA and 401(k) withdrawals and Roth conversions are taxed like wages, mostly at 5.75%. If you are 65 or older, an age deduction of up to $12,000 may lower your bill.
| Income type | Taxed by Virginia in 2026? | Notes |
|---|---|---|
| Social Security | No | Subtracted on Form 760, Line 5 |
| Public pensions | Yes | Taxable if federally taxable. For special cases, check with a state tax preparer |
| Private pensions | Yes | Taxed like wages, mostly at 5.75% |
| IRA and 401(k) withdrawals | Yes | No general Virginia subtraction for IRA income |
| Roth conversions | Yes | Can also shrink your age deduction once AFAGI passes $75,000 (married) |
Does Virginia tax a Roth conversion?
Yes. Your Virginia return starts with your federal adjusted gross income (AGI). Your Roth conversion is in your federal AGI, so it flows straight onto your Virginia return.
The state's own retirement guide says it plainly. If income is taxable at the federal level, it's taxable in Virginia too, with a few exceptions. Your traditional IRA payouts are on the taxable side. Your qualified Roth IRA withdrawals later are generally not taxed again.
We found no state subtraction for Roth conversions or for IRA income in general. The one IRA subtraction on the state's list is narrow. It covers plan money that another state already taxed when you put it in.
What are Virginia's income tax rates?
Virginia uses four brackets: 2% up to $3,000, 3% from $3,001 to $5,000, 5% from $5,001 to $17,000, and 5.75% over $17,000. These come from the 2025 Form 760 instructions.
So if you are a retiree who converts, almost every added dollar is taxed at 5.75%. On a $50,000 conversion that is $2,875 in Virginia tax, before any effect on your age deduction.
For 2025 and 2026, your Virginia standard deduction is $8,750 if you are single and $17,500 if you are married filing jointly. The instructions say this increase is set to end after 2026. Lawmakers could change that, so check before you plan a 2027 conversion.
| Virginia taxable income | Tax |
|---|---|
| $0 to $3,000 | 2% |
| $3,001 to $5,000 | $60 plus 3% over $3,000 |
| $5,001 to $17,000 | $120 plus 5% over $5,000 |
| Over $17,000 | $720 plus 5.75% over $17,000 |
How does a Roth conversion affect the Virginia age deduction?
If you are 65 or older, Virginia gives you an age deduction of up to $12,000. For the 2025 tax year it applied if you were born on or before January 1, 1961. If you were born on or before January 1, 1939, you get the full $12,000 no matter your income.
Everyone else gets an amount based on income. The state measures income with AFAGI, short for adjusted federal adjusted gross income. It is your federal AGI with a few small changes, minus any taxable Social Security and Tier 1 Railroad benefits.
If you are single, you lose $1 of the deduction for every $1 of AFAGI over $50,000. If you are married, you use your combined AFAGI, whether you file jointly or separately. You lose $1 for every $1 over $75,000.
Your Roth conversion adds to AFAGI dollar for dollar. So in the phase-out range, each $1,000 you convert can also cost you $1,000 of age deduction. At 5.75%, that's about $115 of Virginia tax per $1,000 converted, not $57.50.
| Situation | Full deduction if AFAGI is at or under | Example partway | Gone at AFAGI of |
|---|---|---|---|
| Single, 65+ | $50,000 ($12,000) | $7,000 at $55,000 | $62,000 |
| Married, one spouse eligible | $75,000 ($12,000) | $7,000 at $80,000 | $87,000 |
| Married, both spouses eligible | $75,000 ($24,000) | $9,000 at $90,000 | $99,000 |
When this matters most
If your income is already well above $99,000 (married) or $62,000 (single), your age deduction is gone anyway. Then a conversion costs you about 5.75%. If you are just under the phase-out, a conversion can cost close to double that on the dollars inside the range.
Does Virginia tax Social Security?
No. The state exempts your Social Security and Tier 1 Railroad Retirement benefits. If part of your benefit is taxable on your federal return, you subtract that amount on Form 760, Line 5.
This helps you when you convert. A conversion can make more of your Social Security taxable federally (see Conversions and Social Security). The state subtracts that extra amount, and AFAGI leaves it out too. So it doesn't eat into your age deduction.
What if I move, and do I need to pay estimated tax?
If you move into or out of Virginia during the year, you file as a part-year resident (Form 760PY). In general, the state taxes income you get while you live there. So the date of your conversion matters.
If you plan to move to a state with no income tax, such as Florida, a conversion after the move is generally outside Virginia's reach. Confirm the details with a Virginia-licensed preparer.
Estimated tax is new for 2026, and it can bring a surprise bill. The 2025 instructions cover tax years starting on or after January 1, 2026. You generally must make estimated payments if your state tax will be more than $1,000 above your state withholding and credits. A large conversion with no withholding can cross that line. You can pay on Form 760ES or online.
Example: a Richmond couple, both over 65, converting $50,000
Linda, 67, and Tom, 66, file jointly. They are waiting until 70 to claim Social Security. In 2026 they have $60,000 of income from Tom's pension and bank interest. Linda converts $50,000 from her traditional IRA.
Their federal taxable income goes from $12,500 to $62,500. That includes the 2026 senior deduction of $6,000 each, which they keep because their income stays under $150,000. The conversion adds about $5,754 of federal tax, all in the 10% and 12% brackets.
In Virginia, their AFAGI without the conversion is $60,000, under $75,000, so they get the full $24,000 age deduction. With the conversion, AFAGI is $110,000. That is $35,000 over the limit, which wipes out the age deduction.
Their Virginia tax rises from about $622 to about $4,862. That is an increase of about $4,240, or roughly 8.5% of the amount converted.
What this means for you: if you are over 65 in Virginia, count the lost age deduction as part of your conversion cost.
| Without conversion | With $50,000 conversion | |
|---|---|---|
| Federal AGI (and Virginia AFAGI) | $60,000 | $110,000 |
| Federal tax | about $1,250 | about $7,004 |
| Virginia age deduction (both spouses) | $24,000 | $0 |
| Virginia taxable income | $15,040 | $89,040 |
| Virginia tax | about $622 | about $4,862 |
| Total added by conversion | about $9,994 |
Hypothetical example. Assumes married filing jointly, both 65+ and eligible for the income-based age deduction, no Social Security, no other adjustments, the 2026 federal standard deduction ($32,200 plus $1,650 each for 65+), the $6,000 senior deduction each, 2026 brackets (IRS Rev. Proc. 2025-32), the 2026 Virginia standard deduction ($17,500), and Virginia exemptions of $930 each plus $800 each for 65+ (2025 amounts, assumed unchanged for 2026). It ignores the spouse tax adjustment and Medicare IRMAA. Your numbers will differ.
Common questions
Does Virginia tax Roth conversions?
Yes. Your conversion is in your federal AGI, which is where the Virginia return starts, and Virginia has no subtraction for it. Most of it is taxed at 5.75%.
What is the Virginia age deduction for 2026?
Up to $12,000 per person 65 or older. For most people it shrinks $1 for every $1 of AFAGI over $75,000 (married) or $50,000 (single). If you were born on or before Jan. 1, 1939, you get the full amount at any income.
Does a Roth conversion count toward the Virginia age deduction income limit?
Yes. AFAGI is your federal AGI minus taxable Social Security, so your conversion raises it dollar for dollar.
Does Virginia tax Social Security?
No. You subtract any federally taxable Social Security on Form 760, Line 5.
Are Roth IRA withdrawals taxed in Virginia?
Your qualified Roth IRA withdrawals are generally not in your federal AGI, so Virginia doesn't tax them either.
Do I have to make estimated payments if I convert?
Starting with 2026, generally yes if your Virginia tax will be more than your withholding and credits by over $1,000. You can cover it with withholding from the conversion or quarterly Form 760ES payments.
Sources
Facts on this page were last checked on November 9, 2026.
- Virginia Tax, 2025 Form 760 Resident Individual Income Tax Instructions · Tax rate schedule, age deduction rules and worksheet, AFAGI definition, 2025 and 2026 standard deduction, exemptions, Social Security subtraction, 2026 estimated tax rule, part-year filing. Read Nov 9, 2026.
- Virginia Tax, Subtractions · Age deduction phase-out, Social Security subtraction, IRA subtraction for income previously taxed by another state. Read Nov 9, 2026.
- Virginia Tax, Virginia Taxes and Your Retirement (Sept. 14, 2021) · Federally taxable retirement income is taxable in Virginia; traditional and Roth IRA treatment. Read Nov 9, 2026.
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments) · 2026 federal brackets and standard deduction. Read Nov 9, 2026.
Who wrote this
This guide was written and fact-checked by the Secure Retirement Planner editorial team using IRS, CMS and Social Security sources listed above. We update guides when the law or yearly limits change. How we research.