Military Retirement Pay State Income Tax Subtraction
Military Retirement Pay State Income Tax Subtraction
Virginia veterans can subtract up to $40,000 of military retirement income from their state taxable income starting in tax year 2025 (up from $30,000 in 2024).
Details
Virginia veterans can subtract up to $40,000 of military retirement income from their state taxable income starting in tax year 2025 (up from $30,000 in 2024). The subtraction also applies to Survivor Benefit Plan payments and other military benefits paid to a surviving spouse. No age restriction, available to all military retirees.
Restrictions
Subtraction phased in: $10K (2022), $20K (2023), $30K (2024), $40K (2025+). Age restriction removed starting tax year 2024. Claimed on Virginia income tax return Schedule ADJ.
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