Bill > HB47

This bill amends Virginia's income tax law to expand tax subtractions for military and foreign service retirement benefits. Starting January 1, 2027, the bill will allow retirement income from uniformed services (as defined in federal law) to be subtracted from taxable income, and it will permit up to $40,000 of United States Foreign Service retirement benefits to be subtracted when calculating Virginia taxable income. Specifically, the foreign service retirement benefits covered include amounts received from the Foreign Service Retirement and Disability System or the Foreign Service Pension System for employment in the Foreign Service of the United States. The bill includes a provision that prevents taxpayers from claiming multiple credits or deductions for the same retirement income, ensuring that individuals cannot use this new subtraction in conjunction with other existing tax benefits for the same funds. This change aims to provide additional tax relief for military and foreign service personnel by reducing their state tax burden on retirement income.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB47