Cost of Living in Virginia for Retirees

Virginia has long attracted retirees with its mix of historic charm, four distinct seasons and proximity to major metropolitan areas like Washington, D.C., Richmond and Norfolk. Its varied geography – from the Atlantic coast and Chesapeake Bay to the rolling hills of the Blue Ridge Mountains – offers retirees a wide range of lifestyle options and living costs. Whether you prefer urban conveniences or peaceful rural settings, Virginia can accommodate, but understanding the full financial picture is key before making the move.

This guide walks you through what it really costs to retire in Virginia, covering housing, taxes and lifestyle expenses. With this knowledge, you can build a retirement plan that fits your goals and gives you confidence in your financial future.

WHERE YOU’LL LIVE: HOMEOWNERSHIP COSTS ACROSS VIRGINIA

For most retirees, owning a home is a major priority, and it typically represents the largest portion of their retirement expenses. Virginia’s housing market is notably diverse depending on location and type of community, making it essential to consider what fits your budget and lifestyle.

HOME PRICES BY REGION

As of mid 2025, the median home price in Virginia is about $415,000, but prices vary widely based on where you choose to settle:

• Northern Virginia: This region, sometimes called NoVA, includes suburbs such as Arlington and Fairfax, where the median home price in May of 2025 was $664,000. These areas offer excellent amenities, broad access to cultural and employment opportunities and strong property value appreciation, but they come with a higher price tag.
• Tidewater and Coastal Areas: Cities like Virginia Beach and Norfolk attract retirees seeking a coastal lifestyle with median home prices generally reaching $419,000 as of August 2025. These areas offer waterfront access, boating and fishing opportunities, with moderate housing costs compared to NoVA.
• Central and Western Virginia: Regions such as Roanoke, Lynchburg and Charlottesville provide a more affordable cost of living. Median home prices recently fell between $300,000-$479,000, making them attractive for budget-conscious retirees who want scenic mountain views and small-town charm.

HOMEOWNERS ASSOCIATION FEES AND COMMUNITY AMENITIES

Many retirees are drawn to active adult or planned communities that offer amenities like pools, golf courses, fitness centers and social clubs. While these amenities enhance lifestyle, they usually come with monthly HOA fees. These range from $100 to $200 per month, covering common area maintenance, landscaping and community services.

Before purchasing, it’s important to carefully review HOA budgets and rules, as fees can fluctuate and sometimes include special assessments for major repairs.

MAINTENANCE, INSURANCE AND WEATHER CONSIDERATIONS

Homeownership also means budgeting for maintenance and insurance costs, which can vary based on home age, size and location. Coastal properties may face higher flood insurance premiums, while homes in the mountains require preparation for snow removal and winter weather damage.

To protect your investment and maintain comfort, you should also factor regular upkeep – such as roof repairs, HVAC servicing and landscaping – into your annual budget.

NAVIGATING VIRGINIA’S TAX LANDSCAPE FOR RETIREES

Taxes can significantly impact how far your retirement dollars stretch. Virginia’s tax system has both advantages and challenges to understand.

STATE INCOME TAXES ON RETIREMENT

Virginia doesn’t offer the same tax perks as states with no income tax, but it does provide some financial breathing room for retirees:

• Social Security benefits are not taxed: Virginia fully exempts Social Security income from state income tax.
• Deductions for other retirement income: Retirees age 65 and older can deduct up to $12,000 of pension or IRA income, though the deduction amount may be reduced based on adjusted gross income.

Virginia’s income tax rates range from 2% to 5.75%, with the highest rate applying to income above roughly $17,000 for individuals. This means many retirees will pay some level of state income tax on their withdrawals and pensions.

PROPERTY TAXES AND EXEMPTIONS

Virginia’s average effective property tax rate is about 0.76%, slightly below the national average. Localities may offer tax relief programs for seniors or disabled homeowners, which can also reduce your annual property tax bill.

For retirees planning to downsize or buy a second home, it’s important to consider property taxes carefully, as they can add thousands of dollars annually depending on the home value and local rates.

SALES AND OTHER TAXES

Virginia’s statewide sales tax is 5.3%, but local additions can push this to as high as 7% in some areas. This rate may affect everyday purchases – from groceries (mostly exempt) to dining and entertainment.

Notably, Virginia does not have a state estate or inheritance tax, which is advantageous for retirees interested in legacy planning. Remember, though, that federal estate taxes will still apply – but only at high estate values.

LIFESTYLE CONSIDERATIONS AND EXTRA EXPENSES TO EXPECT

Retirement isn’t just about budgeting for basics; your quality of life matters too. Virginia’s climate and culture bring unique costs and opportunities.

SEASONAL AND CLIMATE-RELATED COSTS

Virginia’s four-season climate brings both beauty and a few added expenses. Cold winters often mean higher heating bills and occasional costs for snow removal or home winterization. Summers can be hot and humid, especially in the Tidewater and southern regions, leading to increased cooling costs.

Still, many retirees find that Virginia’s mild shoulder seasons – spring and fall – offer ample opportunities to enjoy the outdoors. From gardening to hiking to community events, staying active outside can offset the need for indoor entertainment and help keep discretionary spending in check.

RECREATION AND SOCIAL ACTIVITIES

Virginia offers a rich tapestry of outdoor adventures and cultural experiences. Whether it’s hiking the scenic Appalachian Trail, exploring the breathtaking Shenandoah National Park or immersing yourself in the state’s vibrant historic festivals and museums, there’s always something to inspire and entertain.

Many retirees set aside funds for hobbies, travel and social activities that enrich their lifestyle. Costs for dining out, entertainment and local events can vary widely depending on individual tastes and how active you choose to be.

COMMUNITY AND SOCIAL AMENITIES

Many retirees appreciate the sense of connection and convenience offered by active adult or 55+ communities. These neighborhoods often provide desirable amenities like fitness centers, swimming pools and organized social events that promote an engaging lifestyle. While these perks enhance retirement living, it’s important to factor in the associated monthly fees when budgeting.

MAKING A SMART RETIREMENT PLAN FOR VIRGINIA LIVING

Virginia offers a unique blend of urban conveniences, natural beauty and rich history that attracts many retirees. However, the cost of living can vary significantly depending on where you choose to settle and the lifestyle you envision.

Being well-informed about housing markets, healthcare expenses, tax obligations and lifestyle costs is essential for creating a realistic and sustainable retirement budget.

At Edelman Financial Engines, we specialize in customized retirement planning that takes your location preferences and financial goals into account. We can help you:

• Accurately estimate monthly living expenses in your chosen Virginia community
• Develop tax-efficient Social Security claiming and income withdrawal strategies
• Maximize the longevity of your retirement savings

If the Old Dominion State sounds like the right fit for you, a financial advisor can help you plan your retirement in Virginia with confidence and clarity.