Virginia Taxable Income Subtraction for Military Retired Pay

Virginia Department of Taxation

$40,000 of military retired pay subtracted from Virginia taxable income

You can subtract $40,000 of military retired pay from your Virginia taxable income. Thrift Savings Plan distributions do not count as retired pay and cannot be subtracted.

Check eligibility

How to apply

There is nothing to apply for in advance. Claim the subtraction on your Virginia income tax return using your Form 1099-R figures.

What you'll need

Your Form 1099-R showing your military retired pay.

Eligibility

You are filing a Virginia income tax return
You receive military retired pay
If your tax year is earlier than 2025, you are claiming the smaller amount allowed for that year under the phase-in schedule rather than the full $40,000
If you are filing for a tax year in which Virginia still limited this subtraction to older taxpayers, you were age 55 or older

Source

Official source

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