Retiring in Richmond
Virginia offers real retiree tax advantages -- full exemption of Social Security income, and a real age deduction of up to $12,000 for other retirement income (phasing out above $50,000 single/$75,000 joint federal AGI) -- though Richmond's real estate tax rate is the highest among core Richmond-region jurisdictions, worth weighing against the state-level tax benefits for a retiree choosing between the city itself and its surrounding counties.
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Learn moreSocial Security: Fully Exempt, a Real and Straightforward Benefit
Virginia does not tax Social Security benefits or Tier 1 Railroad Retirement income at all -- a real, straightforward, and complete exemption applying to any Virginia resident regardless of age, not a partial or income-limited benefit.
A Real Age Deduction for Other Retirement Income, With a Genuine Phase-Out
Virginia's age deduction allows taxpayers 65 or older to deduct up to $12,000 of other income (pensions, IRA/401(k) distributions, investment income, and more) from state taxable income. This phases out $1 for every $1 that federal adjusted gross income exceeds $50,000 (single) or $75,000 (married filing jointly), fully eliminated at $62,000 single / $99,000 MFJ. Taxpayers born on or before January 1, 1939 receive the full $12,000 with no income test at all -- a real but now very small and shrinking cohort, since that birth-year cutoff means qualifying taxpayers are in their late 80s or older as of 2026.
What's Left Is Taxed at Virginia's Near-Flat 5.75% Rate
Retirement income above what the Social Security exemption and age deduction cover is taxed under Virginia's standard graduated brackets, which top out at 5.75% starting at just $17,000 of taxable income -- functionally near-flat for most of a retiree's income above the exempted/deducted amounts. See the taxes topic page for the full bracket detail.
A Real Trade-off: State Tax Benefits vs. Richmond's Higher Local Property Tax
A retiree weighing Richmond specifically (as opposed to Virginia generally) should factor in a real, city-specific cost: Richmond's $1.20-per-$100 real estate tax rate is the highest among core Richmond-region jurisdictions, meaningfully above Henrico ($0.83), Chesterfield ($0.91), and Hanover ($0.81). A retiree prioritizing the lowest total tax burden might reasonably choose to live in one of these surrounding counties while still accessing Richmond's healthcare systems, cultural amenities, and urban core -- a real, practical option given Richmond's independent-city structure and its close-by, well-connected suburbs.
Richmond Is a Working, Multi-Pillar City First, With Real Healthcare Depth for Retirees
The honest positioning: Richmond's identity is state government, VCU/VCU Health, and a growing finance sector -- not a dedicated retiree-centric pace the way some Sun Belt retirement markets are built to be. That said, Richmond's real healthcare depth (VCU Medical Center's #1-in-Virginia ranking, plus Bon Secours and HCA Virginia systems, detailed on the healthcare topic page) is a genuine, relevant asset for retirees prioritizing healthcare access specifically, even without a retirement-community-first identity.
Key takeaways
- Virginia fully exempts Social Security income from state tax -- a real, straightforward, complete exemption for any Virginia resident regardless of age.
- Virginia's age deduction (up to $12,000 for 65+, phasing out above $50K single/$75K MFJ federal AGI, fully eliminated at $62K/$99K) applies to other retirement income; those born on/before Jan 1, 1939 get the full amount with no income test, a real but now very small cohort.
- Income above these exemptions/deductions is taxed at Virginia's near-flat 5.75% top rate (starting at just $17,000 of taxable income) -- see the taxes topic page for the full bracket detail.
- A real trade-off for retirees: Richmond's real estate tax rate is the highest among core Richmond-region jurisdictions -- a retiree prioritizing lowest total tax burden might reasonably choose a surrounding county while still accessing Richmond's amenities.
- Richmond is a working, multi-pillar city first, not a dedicated retirement destination -- though its real healthcare depth (VCU Medical Center's sustained #1-in-Virginia ranking, plus Bon Secours/HCA Virginia) is a genuine asset for retirees prioritizing healthcare access.
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