Compare taxes and see how much you save moving from Virginia to Florida
Virginia is a popular retirement state in the Mid-Atlantic — lower cost than the DC suburbs, good healthcare access, and mild seasons. But Virginia's state income tax takes a meaningful bite from retirement income. The top rate is 5.75% on income above $17,000. Social Security is fully exempt, and retirees aged 65 and older qualify for a $12,000 age deduction from their taxable income. After that deduction, a retiree with $100,000 in non-Social Security retirement income (pensions, 401(k), IRA withdrawals) pays approximately $4,800 in Virginia state tax. Florida charges nothing. Over a 20-year retirement, that gap is roughly $96,000 on a $100K income stream. Virginia also has no estate tax, which it shares with Florida. Virginia's appeal for retirees lies in its proximity to family and DC-area healthcare, four seasons, and lower housing costs than Northern Virginia. Florida's appeal is pure: no income tax, no estate tax, and warm weather year-round. For retirees who can work from anywhere, the financial case for Florida over Virginia is strong — the annual tax savings on pension and IRA income alone can cover several months of living costs.
SS Exempt, Age Deduction
Progressive 2–5.75%; Social Security exempt; $12,000 age deduction for 65+
No Income Tax
Zero state income tax on all retirement income sources
At $100,000 income:
Florida saves approximately $4,800/year vs Virginia at $100K retirement income (excluding Social Security). Virginia's $12,000 age deduction reduces the taxable base; the remaining income faces rates up to 5.75%.
| Income | VA Tax | FL Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 retirement | ~$1,900 | $0 | FL saves ~$1,900/yr | $19,000 |
| $75,000 retirement | ~$3,365 | $0 | FL saves ~$3,365/yr | $33,650 |
| $100,000 retirement | ~$4,803 | $0 | FL saves ~$4,803/yr | $48,030 |
| $150,000 retirement | ~$7,678 | $0 | FL saves ~$7,678/yr | $76,780 |
| $250,000 retirement | ~$13,685 | $0 | FL saves ~$13,685/yr | $136,850 |
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Get Matched With a Retirement Tax CPA →No. Virginia fully exempts Social Security benefits from state income tax. This has been the case for many years and applies regardless of your total income. If your primary income source in retirement is Social Security, the Virginia versus Florida tax difference is small. The Virginia tax advantage shrinks; the gap widens once you factor in pension income, IRA withdrawals, and RMDs from traditional retirement accounts.
Virginia allows a $12,000 income deduction for taxpayers aged 65 and older. This reduces your taxable Virginia income by $12,000 before applying the progressive tax brackets. At 5.75%, this deduction saves about $690 per year compared to having no deduction. For married couples where both spouses are 65+, each can claim the $12,000 deduction — a combined $24,000 reduction. The deduction begins to phase out once income exceeds $50,000 (single) or $75,000 (married).
Federal government pensions are subject to Virginia income tax after the age deduction. Virginia does not offer a specific exemption for federal, state, or local government pensions beyond the general $12,000 age deduction. Military retirement pay is also taxed in Virginia after the deduction. This is a notable difference from some states that fully exempt government or military pensions — and a meaningful contrast with Florida, which taxes no pension income at all.
If your retirement income (excluding Social Security) is $80,000, you would pay approximately $3,800 in Virginia state tax after the $12,000 age deduction. In Florida, you pay $0. Over 20 years at constant income, that's $76,000 in total savings by choosing Florida. At $120,000, the Virginia tax bill is approximately $6,200 per year — or $124,000 over 20 years. These figures do not account for Florida's higher property insurance costs, which can offset $3,000–$5,000 of the tax advantage annually.
No. Virginia abolished its state estate tax in 2007. There is no Virginia inheritance tax either. Both Virginia and Florida follow the federal estate tax threshold ($13.61 million per individual in 2024), making both states favorable for wealth transfer. This is a significant advantage both states share over states like Massachusetts, Oregon, or Illinois, which have state estate taxes starting at $1–2 million.
For most retirees with meaningful non-Social Security income, the numbers favour Florida. The annual state tax saving ranges from $1,900 (at $50K) to $13,700 (at $250K). However, moving costs, Florida's property insurance ($4,000–$8,000/year), and leaving established family and healthcare relationships all have real value. Retirees with income under $60,000 in non-SS distributions may find the savings ($2,300–$3,000/year) not worth the upheaval. High-income retirees with substantial pension or IRA income save significantly more and have a stronger financial case to move.
Required Minimum Distributions from traditional IRAs and 401(k)s count as ordinary income in Virginia and are subject to the state income tax after the $12,000 age deduction. At 5.75%, a $50,000 RMD would result in approximately $2,185 in Virginia state tax (after the deduction). In Florida, the same $50,000 RMD faces zero state tax. For retirees with large IRA balances who will face substantial RMDs, the Florida advantage compounds significantly over time.