Virginia - Military Retirement/Pension Income

Tax Years 2021 and prior

For tax years 2021 and prior, military retirement income is taxable in Virginia except for military retirement income received by Medal of Honor recipients.

Tax Years 2022 and forward

For tax years 2022 and 2023, the Military Benefits Subtraction can be taken by taxpayers age 55 or older. Beginning with tax year 2024, this subtraction has no age limitation.

The Military Benefits Subtraction includes the following military benefits, subject to the annual limitation:

• Military retirement income received for service in the Armed Forces of the United States.
• Benefits paid to the surviving spouse of a veteran of the Armed Forces of the United States under the Survivor Benefit Plan program established by the U.S. Department of Defense.
• Military benefits paid to the surviving spouse of a veteran of the Armed Forces of the United States.
• Qualified military benefits received pursuant to a section of the Internal Revenue Code regarding certain military benefits.

The amount of the subtraction each tax year is limited as follows:

• 2022 - $10,000
• 2023 - $20,000
• 2024 - $30,000
• 2025 and forward - $40,000

To subtract military retirement pay from the Virginia individual income tax return in Tax Processors Plus Online, from the Virginia Return menu select:

• Subtractions from Income
• Other Subtractions - In the dropdown menu select either Military Benefits or Medal of Honor Recipients and enter the subtraction amount as a positive number.

Additional Information:

Virginia DOT: Military Benefits Subtraction FAQs

Virginia DOT: Subtractions from Income

Tax Processors Plus Online strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.