The Complete Guide to Retiring in Virginia

Learn about retirement in Virginia, from taxes and income to lifestyle choices

Virginia is rated as the third best state to retire to by Wallethub—just behind Florida and Colorado. It earned high marks for quality health care and senior safety that’s enabled by strong laws around elder abuse. As a coastal state with miles of shoreline, a moderate climate, and a low crime rate, Virginia is an attractive place to retire. If Virginia’s on your list of possible retirement places, read on to get all the details about the pros and cons, including climate, tax rates, and senior communities! 

Key Takeaways:

• The average retirement age in Virginia is 65.

• Virginia’s climate is mild, making it a good place to retire if you’re sensitive to harsh weather conditions.

• Housing costs are relatively low in Virginia, but can be very high in certain areas close to Washington, DC.

• Traffic and lack of public transportation is a problem in some areas.

Pros and cons of retiring in Virginia

Like with any other state, there are various pros and cons to retiring in Virginia. Whether the pros outweigh the cons depends on financial, health, and lifestyle preferences. Below, we highlight some of the pros and cons of retiring in Virginia. 

Pros

• Virginia’s taxes are relatively low

• The climate in Virginia is mild

• With the Shenandoah mountains and a large coastline, Virginia is a great place for many outdoor activities

• Steeped in history, Virginia is also home to several historic sites, museums, and monuments

• Crime rates in Virginia are low

Cons

• The cost of living in Virginia can be high, particularly if you live in Northern Virginia, close to Washington, DC

• Other than in a few cities, there is little to no access to public transportation

• Traffic in the cities is a problem

Retirement taxes in Virginia

Social security benefits are not taxed in Virginia, but most other sources of retirement income are. These include pensions, 401(k)s, and railroad benefits. Retirement income is taxed at the same rate as any other source of income.

Income taxes in Virginia are graduated. This means that, the higher your income is, the higher percentage you’ll pay. The rates range from 2% for anyone earning $3,000 or less to 5.75% for anyone earning over $17,000.

If you are 65 or older you can receive an age deduction on your income tax, regardless of its source. The deduction is $12,000 for those born on January 1, 1939 or earlier and is based on income for anyone born after that date.

Retirement communities in Virginia

The average retirement age in Virginia is 65. Since it’s a popular place to retire, Virginia has a lot of retirement communities. There are 539 of them across the state. Richmond is known for having a high number of quality retirement communities.

Popular cities to retire to in Virginia

Several cities in Virginia have become well known as good places to retire to. Among these are:

• Richmond has many retirement communities and is considered a highly walkable city, filled with historical sites.

• Virginia Beach has picturesque beaches that have attracted many. Being further south and close to the ocean helps keep the city’s climate mild year-round.

• Williamsburg, which is most known for its Colonial Williamsburg historical area, also offers lower housing costs than most parts of the state.

Climate and outdoor recreation in Virginia

Virginia’s climate is mostly composed of hot, wet summers and cool, dry winters. Areas closer to the Blue Ridge Mountains are dryer year-round and have cooler winters. Heavy snow is uncommon. For retirees who are looking to escape the heat, Virginia’s climate might seem perfect. However, the humidity can make Virginia summers feel hotter.

Virginia’s extensive coastline allows for sailing, beach trips, and fishing. Virginia also has many lakes and rivers. The Blue Ridge Mountains provide numerous hiking trails and camping sites. Finally, Virginia’s climate is great for vineyards, and many people enjoy visiting Virginia’s 300+ wineries.

Housing and cost of living in Virginia

Housing costs in Virginia are almost exactly at the national average. Virginia’s average home goes for $351,581. The current national average is $362,481. A few areas have home costs below the average. For example, in Martinsville, the average home goes for $105,031. Home costs will be much higher as you get closer to Washington, DC. Great Falls’ average home cost is an eye-popping $1.5 million! The average property tax rate in Virginia is 0.75%.

Just like the housing costs, the cost of living in Virginia is about the same as the national average. Utility bills and healthcare costs were slightly higher than the average, and food and transportation bills were slightly lower.

Sales taxes in most places in Virginia are 5.3%. Food and certain items that are considered essential to hygiene are taxed at a rate below 1%. Some counties have a higher sales tax rate, up to 7%.

Resources for seniors in Virginia

The Virginia Department for Aging is the state’s main hub for senior resources. On its website you can find resources for caregivers, search for local resources, find locations of care centers and adult day cares, and explore legal services. The department also offers health and nutrition guides and services. A fraud section covers the details of many scams that are known to target senior citizens.

Quality of healthcare in Virginia

The United Healthcare Foundation rates Virginia 20 out of the 50 states for its quality of care for seniors. There are also several high-quality hospitals in Virginia. Chippenham Hospital was rated one of the top 100 hospitals in the United States and got additional accolades for its joint replacement surgery, cardiac surgery, and spinal surgery. Inova Alexandria Hospital also made the top 100 hospitals list. Its high quality stroke care and pulmonary care were noted.

Medicare in Virginia

1.6 million people in Virginia are currently covered by Medicare. 89% of those people are over 65, and the rest are eligible due to having a disability or qualifying chronic condition. 

If you qualify for Medicare due to age, there’s a seven-month period around your 65th birthday in which you can enroll in Medicare. This is called your Initial Enrollment Period (IEP) and it starts three months before your birth month and ends three months after. When you first enroll in Medicare, you’ll enroll in Original Medicare, which is made up of Part A and Part B. From here, you have some options, which we explain in our Virginia Medicare overview. These options include Medicare Part D (prescription drug coverage), Medicare Supplement plans, and Medicare Advantage. 38% of enrollees are on a Virginia Medicare Advantage plan.

Retiring in Virginia

With mild weather, many outdoor activities, several historical sites, and relatively affordable housing costs, Virginia attracts many retirees. If you’re interested in retiring in Virginia, consider taking a trip to the areas you’re considering to get a sense of the community and activities.