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Desktop: 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 the military retirement pay from the Virginia individual income tax return in TaxSlayer Pro, from the Virginia Resident Tax Return Menu select:

  • Total Subtractions
  • Other Subtractions
  • Other Subtractions - Click New and select either subtraction code 60 - Military Benefits or 44 - Medal of Honor Recipients and enter the eligible military retirement as a positive number.

Additional Information:

Virginia DOT: Military Benefits Subtraction FAQs

Virginia DOT: Subtractions from Income

While TaxSlayer Pro strives to make the information and links contained on this page as timely and accurate as possible, TaxSlayer Pro makes no promise or guarantee about the timeliness, accuracy or completeness of the contents of this page. The information contained on this page is for general information and is not intended to be tax advice. The user is also encouraged to review the underlying state resources and publications.