Wow, Virginia is VERY favorable to its retirees, just don’t own an expensive car as they charge nearly 5% a year on assessed value for property tax(depending on the county you live).
But lots of great income exemptions on retirement income. Qualifying couples can exlude up to $24,000 of retirement income, so long as their total AGI doesn’t exceed $75k.
Now remember the difference between taxable income and gross income. AGI of $75k means you can’t have taxable income more than $48,400 if you’re married filing jointly and over the age of 65.
Now, with that said, even if you break that $75k AGI threshold, you still can get an exemption but you will lose the entirety once you hit $87k.
Social Security is tax exempt as well. So, you can have a lot of income essentially tax free.
In fact, I ran a calculation of $50k in Social Security income and $50k in IRA distributions. Total tax for that $100k gross income? $770. That’s it.
Sales tax is quite favorable too. Virginia falls in the top 10 in terms of the lowest sales tax in the nation. Food is taxed but only 2.5% or so. So not too bad
Lastly property tax rate is quite low at .84%. Now, Virginia does have fairly expensive property so the overall dollar amount that goes to Richmond is rather high. But that primarily is from Northern Virginia where the property values are sky high.
All in all Virginia is VERY favorable for for retirees in terms of taxation.
See the video here.