Governor Glen Youngkin signed two tax cut bills for veterans on Sep 9. SB 528 patroned by Senator Bryce Reeves, (R-Spotsylvania), and HB 1128, patroned by Delegate John McGuire, (R-Goochland).
The bills create a state income tax deduction for military retirement income for veterans age 55 and older at a phased-in rate of $10,000 in the taxable year 2022, $20,000 in the taxable year 2023, $30,000 in the taxable year 2024, and up to $40,000 in the taxable year 2025.
According to the Virginia Tax Department the Senate bill should help military retirees save $1,250 a year, while the House bill will help military retirees save up to $2,500 a year.
“As part of my Day One Game Plan, I’ve pledged to fight for a reduction in military veteran retirement pay taxation, and today, we are delivering on that promise. This is a great step toward making Virginia the most veteran-friendly state in the country. I feel honored to support our service members in this way. I want to thank the legislators for their incredible work as we continue to advocate for our military-connected communities, veterans, and their families,” said Governor Glenn Youngkin during the signing ceremony.
In his statement, McGuire thanked the governor for his support. “Thank you Governor Youngkin for trusting me to fight hard to get HB 1128, one of your campaign promises, passed in the General Assembly. Governor Youngkin’s message to Virginia veterans is clear, we appreciate your service and want you to stay. As a father, husband, Navy SEAL veteran, business owner, and legislator, I want to thank Governor Youngkin and fellow legislators for caring about Virginia veterans. Together we have achieved a great milestone – the largest veteran tax decrease in Virginia history.”
“I am grateful for this significant achievement to support our Veterans and incentivize them to stay in Virginia. Veterans and their families are tremendous assets to the Commonwealth, and we must do everything to keep those families here after their service is complete. Virginia will continue to be the best state for our military Veterans and their families,” said Secretary of Veterans and Defense Affairs Craig Crenshaw.
According to Veteran.com, this puts Virginia in line with other states that either exempt military retirement pay or offer other relief to military retirees. Nine states don’t have a personal income tax, three states fully tax military retirement pay, 25 states don’t tax retirement pay, and 13 tax a portion of it.
“During my time as a senator, I have consistently worked to make Virginia the most veteran-friendly state in the country. Today marks a big step toward achieving that goal to attract and retain the best of the best talent that our country produces,” said Reeves. “When it comes to those who wear the cloth of our country and risk their lives for our freedom, you will find the Virginia legislature standing shoulder to shoulder with all of us stepping up to do our very best. I’d like to thank the 27 plus veteran service organizations and the Joint Leadership Council (JLC) who helped to get this bill passed.”
“This retirement tax cut is a huge benefit to veterans! And it definitely moves Virginia towards being a more veteran-friendly state to live in and retire,” said Angela McConnell, CEO of The Northern Virginia Veterans Association.