Virginia Tax Exemption for Military Retired Pay

Virginia has a graduated income subtraction for military retired pay. For the 2022 tax year resident Veterans aged 55 and over who are receiving military retired pay can deduct $10,000 from their Virginia taxable income. This subtraction will increase each year by $10,000 until the 2025 tax year, for a maximum subtraction of $40,000.

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

Beginning in the 2023 tax year the over age 55 eligibility requirement has been eliminated. 

Link: Virginia Military and Veterans Benefits | The Official Army Benefits Website