You’ll be hard-pressed to find a more patriotic group of people than us here in Virginia. Maybe it’s because of our enormous Naval Station Norfolk, our Virginia War Museum, or the fact that more American presidents have been born in Virginia than in any other state. Yes, that’s correct – 8 Virginians later became Presidents (so far!). Even our country’s founding father, George Washington, can call Virginia his birthplace. It’s also why we love our veterans and always go out of our way to take care of them. We recommend Virginia Beach as a great place to retire and the state as a whole, of course, but especially to veterans!
Of course, there must be a more concrete reason to settle down here in Virginia for your Golden Years besides being welcomed with open arms. So, what specific benefits await you here in the great state of Virginia?
Virginia is the Most Veteran Friendly State
According to personal finance website WalletHub, Virginia is the most veteran-friendly state. When factors such as healthcare, economic environment, and quality of life are combined, Virginia beats out every other state regarding veteran friendliness. Each factor has its own subfactors that were carefully weighed and added together after extensive research. These subfactors include the number and quality of Veteran Affairs hospitals, state taxes on military pensions, amount of military bases and existing veterans, and housing affordability. You can read more here.
Low Veteran Taxes
Reduced Veteran Retirement Income Tax
On September 9th, 2022, Governor Younkin signed into law a phased deduction rate for veterans 55 and older.
- $10,000 in taxable year 2022,
- $20,000 in taxable year 2023,
- $30,000 in taxable year 2024
- Up to $40,000 in taxable year 2025.
Basically, when you file your 2022 taxes, you will be able to deduct $10,000 from your taxable income, and an additional $10,000 can be deducted each year until 2025 when the deduction caps out at $40,000. For example, if your post-federal tax retirement income is $50,000 in 2022, Virginia will only tax $40,000 of it after a $10,000 deduction. In 2023, they will tax only $30,000 because you’re then able to deduct $20,000.
After all the phases have been implemented in 2025, if your post-federal tax income is, say, $100,000, Virginia will tax $60,000 of it, as the maximum deductible amount of $40,000 will have been reached.
Besides having more disposable income, higher tax savings means being able to sock more away into an investment account (such as a Roth IRA) or utilize alternative savings methods. With the way inflation is corroding retirement accounts, all possible avenues to secure your retirement should be explored!
NO Veteran Retirement Income Tax
As a special thank you and honor to those who have sacrificed so much to those with a 100% VA Disability, the State of Virginia won’t tax retirement income at all. If you are a Medal of Honor recipient, you needn’t worry about state income taxes either. You’ve certainly earned it!
Veteran Property Tax Exemptions
For 100% VA Disabled veterans, you won’t have to pay taxes on your primary dwelling. The property will remain tax-free as long as it is owned by a surviving spouse of a 100% VA Disabled veteran as well.
Other Veteran Benefits
Many veterans love to hunt and fish. Keeping this in mind, Virginia offers discounted lifetime hunting and fishing licenses to disabled veterans. If you are a 100% VA Disabled veteran, they’re free! On top of that, there are special hunting and fishing zones on military bases that are accessible to veterans. 100% VA Disabled veterans also get free admission to state parks with free use of any boat launches. The courtesy is extended to anybody assisting the veteran.
Virginia is a beautiful state that abounds with possibilities for veterans and their families. If you’d like more information about the benefits Virginia offers and how relocation would affect your retirement portfolio, I’d love to chat with you. Just click the button below to set up a meeting!