If you’ve started thinking seriously about retirement, chances are you’ve also started thinking about costs. How much will I need each month? Will my savings really last? And where can I live that helps me make the most of what I have?
That’s where taxes come into the picture. Specifically, whether your Social Security income will be taxed.
Many retirees start their search by looking at states that don’t tax Social Security, hoping to stretch their budget a little further. But taxes are just one piece of the puzzle.
You might find a state that doesn’t touch your Social Security, only to discover sky-high housing prices, expensive insurance, or hidden costs that add up fast.
That’s why it helps to look beyond the headline.
Virginia doesn’t just check the no-tax box. It offers a complete package of smart, balanced living, from affordable healthcare to reasonable property taxes and everyday expenses that won’t nickel-and-dime you.
In this guide, we’ll explore why skipping the Social Security tax is only part of the story and why retiring in Virginia could offer more long-term value than some of the flashier “tax-friendly” states you’ve heard about.
Why Taxes on Social Security Matter in Retirement
For many retirees, Social Security makes up a significant portion of their monthly income. However, not everyone realizes that those benefits can be taxed depending on where you live.
At the federal level, your Social Security might be partially taxed if your income (including pensions, withdrawals, or part-time work) crosses a certain threshold. On top of that, some states tax those benefits, too.
Others, like Virginia, choose not to.
It’s Not Just About One Line on Your Tax Return
Many retirees are drawn to states that don’t tax Social Security because it feels like an easy win.
And in some ways, it is.
But Josh Withers, a financial advisor with Frieden Wealth Management, reminds us that retirement planning is about the long game, not just the quick savings.
“Focusing on your long-term strategy is crucial. Emotions can sometimes lead to hasty decisions, especially in uncertain times. But attempting to outsmart the market, or your budget, often means missing key opportunities.”
When you zoom out and look at the full picture, where you retire impacts more than just your taxes. It touches everything; housing, healthcare, insurance, transportation, and your overall peace of mind.
Virginia is one of the few places that offers both: tax relief and long-term stability.
A Closer Look: States That Don’t Tax Social Security
If you’ve been researching retirement options, you’ve probably come across lists of states that don’t tax Social Security income. On the surface, this sounds like the golden ticket to a budget-friendly retirement, but it’s only part of the story.
Who’s On the List?
As of 2025, these states do not tax Social Security income:
- Alaska
- Florida
- Illinois
- Iowa
- Mississippi
- Nevada
- New Hampshire
- Pennsylvania
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
- Virginia
Virginia makes the cut, but what sets it apart is what else it brings to the table.
What’s the Catch?
Just because a state doesn’t tax Social Security doesn’t mean it’s truly affordable. In fact, many of these “tax-friendly” states come with higher hidden costs.
Let’s break it down:
| State | Social Security Tax | Cost Concerns |
|---|---|---|
| Florida | ❌ No | Extremely high property insurance, rising housing costs, crowded medical systems |
| Texas | ❌ No | Among the highest property tax rates in the country |
| Nevada | ❌ No | Elevated housing and healthcare costs in metro areas |
| Tennessee | ❌ No | Lower income taxes, but rising rents in all major cities |
| Virginia | ❌ No | Reasonable housing, low property taxes, moderate cost of living, and quality healthcare |
Beyond the Tax Break
Many retirees look at taxes first, and understandably so. But retirement affordability isn’t just about one policy.
Here’s what really makes a difference:
- Property taxes
- Healthcare costs
- Housing availability and prices
- Insurance premiums
- Day-to-day expenses like groceries, gas, and utilities
“Today’s news moves so quickly that you should anticipate more price swings in the weeks ahead. But don’t let emotions override sound decision-making,” says Josh Withers,“While 2025 might feel extraordinary, history shows it is pretty much like every other year.”
It’s a helpful reminder that real financial stability comes from the full picture and an all encompassing strategy, not just chasing a single tax break without considering other expenses.
Why Virginia Offers Even More for Retirees
Virginia doesn’t just skip the Social Security tax; it offers a full package of financial perks that make it one of the most well-rounded retirement destinations in the country.
Let’s take a closer look at what sets it apart.
Social Security Stays Untaxed in Virginia
We’ll start with the obvious: Virginia does not tax Social Security income. It’s a straightforward win for retirees relying on benefits as a major income source. No surprises, no add-ons, just more of your money staying in your pocket each month.
Generous Breaks on Retirement Income
If you earn income from other sources, like a pension, IRA, or 401(k), Virginia gives residents aged 65 and older up to a $12,000 deduction on retirement income. And there’s no estate or inheritance tax, making it easier to preserve your legacy for loved ones.
Low Property Taxes (Without Giving Up the View)
Property taxes in Virginia are well below the national average, with an effective tax rate around 0.76%. That’s a big deal for homeowners, especially when you factor in access to oceanfront or small-town living without the sticker shock of places like California or Florida.
In Virginia Beach, for example, the average property tax bill is significantly lower than what you’d find in many popular coastal cities.
Healthcare You Can Count On
Virginia ranks high for healthcare access and quality, but even better, it’s reasonably priced in most areas. In fact:
- Employer-sponsored health plans average just over $1,823 annually for employees
- Doctor visits and basic care are on par with or slightly below national averages
- Cities like Richmond and Virginia Beach offer both excellent care and lower costs than major metro areas
Everyday Costs That Make a Big Difference
In Virginia, your dollar stretches further across the board with the average cost of living in Virginia 0.68% lower than the national average.
- Groceries: About 16% cheaper than the national average
- Gas: Averaging $3.53/gallon, which is below the national average
- Utilities: Monthly utility bills come in around $175–$250, depending on region and home size, which is lower than the national average.
- Dining out: Meals are typically $5–$10 cheaper than in popular retirement states
- Auto insurance: Virginia residents pay an average of $960/year, far less than Florida or Texas
These little savings make a real difference on a fixed income.
Affordable Coastal Living Without the Tradeoffs
Living near the ocean doesn’t have to mean breaking the bank. In places like Virginia Beach, Chesapeake, and Norfolk, you’ll find:
- One-bedroom rents averaging $1,500–$2,000; slightly higher than the national average but much lower for popular beachside retirement states
- Median home prices under $400,000
- Year-round beach access, boardwalks, and community events, all without the extreme heat, storm risk, or insurance spikes you’ll find in other coastal states
Mild Seasons = Lower Utility Costs
Virginia’s four-season climate is famously moderate. That means:
- Less need for constant air conditioning in summer
- No deep freezes or heavy snowstorms that hike up winter heating bills
- Lower average monthly utilities compared to many northern or southern states
- Lower property insurance costs
Comfortable weather and comfortable utility bills? That’s a retirement win.
Atlantic Shores — Where Cost Meets Comfort
You’ve seen how Virginia stacks up on paper: low taxes, reasonable housing, manageable everyday expenses, and top-tier healthcare. But what does that actually look like in real life?
At Atlantic Shores, it looks like this:
- A private coastal community with easy access to Virginia Beach’s boardwalk and shoreline
- Beautiful, maintenance-free homes and apartments
- On-site healthcare, dining, fitness, and wellness services
- Built-in community, friendship, and support
- All-inclusive pricing options that help you plan with confidence
- Access to care that evolves with your needs
- No hidden fees or unexpected expenses
Retirement should be about enjoying your time, not worrying about what the next month’s bills will bring.
Retirement That Feels Good And Makes Sense
When planning for retirement, it’s easy to focus on just one number. But true financial peace of mind comes from looking at the whole picture.
Yes, states that don’t tax Social Security are a great starting point. But as you’ve seen, the bigger win comes from living where everything is built to support your retirement; lower housing costs, accessible healthcare, affordable everyday living, and a community that truly cares.
That’s exactly what Virginia offers. And it’s what Atlantic Shores brings to life every single day.
Ready to explore what retirement could really look like?
Schedule a visit to Atlantic Shores and let us show you how far your retirement can go, financially, emotionally, and personally.
Frequently Asked Questions About Social Security and Retirement in Virginia
Why is Virginia a good state for retirees?
Virginia offers a rare mix of no tax on Social Security, low property taxes, affordable healthcare, and a moderate cost of living. It also features a four-season climate and access to coastal living in areas like Virginia Beach.
Does Virginia tax Social Security benefits?
No, Virginia does not tax Social Security benefits. Retirees also receive up to a $12,000 deduction on other retirement income, with no estate or inheritance taxes.
How does Virginia compare to Florida for retirement?
Both states don’t tax Social Security, but Virginia generally has lower property insurance costs, fewer climate risks, and a more moderate cost of living. It’s a strong alternative for retirees seeking long-term financial stability.
What should I consider beyond Social Security taxes when choosing a state to retire?
Beyond tax policies, consider housing costs, healthcare access, property taxes, insurance rates, and overall cost of living. These factors often have a greater long-term impact than tax savings alone.
Is Virginia Beach a good place to retire?
Yes. Virginia Beach offers affordable coastal living, low property taxes, access to healthcare, and a vibrant, retiree-friendly community — all with a lower risk of extreme weather and insurance hikes.
What makes Atlantic Shores different from other retirement communities?
Atlantic Shores offers all-inclusive pricing, on-site healthcare, a private coastal location, and a built-in community near Virginia Beach. It’s designed to provide long-term peace of mind and financial predictability.
What are the hidden costs to watch out for in ‘tax-friendly’ states?
Even if a state doesn’t tax Social Security, high housing costs, insurance premiums, healthcare expenses, and property taxes can outweigh those savings. It’s important to look at the full financial picture.
