The Pros and Cons of Retiring in Virginia

Virginia often makes the shortlist for retirement destinations – and for good reason. From coastal towns and rolling mountains to charming historic cities, the Old Dominion offers a diverse blend of natural beauty, cultural depth and economic stability. Retirees can enjoy four distinct seasons, rich history and proximity to both outdoor adventure and top-tier health care providers.

But, as with any major life decision, it’s important to look at the full picture. While Virginia has much to offer, there are trade-offs to consider – like cost-of-living variations, unpredictable weather and tax policies that may not be ideal for every retiree.

In this guide, we’ll walk you through the pros and cons of retiring in Virginia to help you evaluate whether it aligns with your lifestyle and financial goals.

THE PROS OF RETIRING IN VIRGINIA

A MIX OF TAX BENEFITS FOR RETIREES

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 exempts Social Security income from state taxes.
• Deductions for other retirement income: Retirees 65 and older can deduct up to $12,000 of pension or IRA income, depending on age and adjusted gross income.
• Moderate property taxes: Virginia’s property tax rates average at 0.76% and are below the national average, helping to keep long-term housing expenses manageable.

While it’s not a tax haven, Virginia strikes a balance that appeals to many retirees – especially those who value access to amenities and health care over minimal taxation.

DIVERSE LANDSCAPES AND SEASONS

Love the idea of experiencing all four seasons? Virginia offers a taste of everything:

• Mild springs and colorful autumns are ideal for outdoor enthusiasts and those who enjoy seasonal changes.
• Snow in the mountains and milder winters near the coast give you flexibility to choose your preferred climate.
• With the Blue Ridge Mountains, Shenandoah National Park and the Chesapeake Bay, the state is rich in opportunities for hiking, boating and adventurous getaways.

This geographic diversity also means retirees can choose between mountain towns, beach communities or suburban enclaves just outside Washington, D.C. – each with its own pace of life.

VIBRANT COMMUNITIES TO MATCH YOUR LIFESTYLE

Virginia’s mix of cities, college towns and rural communities provides something for everyone:

• Charlottesville: A charming college town with vineyards, culture and mountain views
• Williamsburg: Rich in colonial history, it’s quiet yet lively, especially for history buffs and golf lovers
• Richmond: Offers an affordable urban experience with art, food and access to riverside trails
• Virginia Beach: Coastal living with walkable boardwalks and a growing health care system

Whether you’re seeking peaceful seclusion or a culturally rich environment, you can find your niche in Virginia.

ACCESS TO EXCELLENT HEALTH CARE

Health care is a key concern for retirees – and Virginia offers strong options:

• Top-tier hospitals and health systems include Inova Health, UVA Health and VCU Medical Center.
• Specialists and major medical centers are especially concentrated in Northern Virginia and metro areas.
• Resources for aging in place, such as home care services, geriatric programs and community support, are available across the state.

This infrastructure gives retirees confidence in accessing the care they need, both now and as their health needs evolve.

PROXIMITY TO FAMILY AND TRAVEL HUBS

Retirees with children or grandchildren in the Northeast or Mid-Atlantic often find Virginia ideal for staying connected. Major interstates and several regional airports – like Dulles International Airport and Richmond International – make it easy to travel for holidays, medical needs or last-minute plans.

Plus, living in Virginia puts you within driving distance of Washington, D.C., North Carolina beaches and even New York City for a weekend getaway.

THE CONS OF RETIRING IN VIRGINIA

INCOME TAXES MAY IMPACT HIGHER EARNERS

Unlike states such as Florida or Tennessee, Virginia does have a state income tax. While it offers deductions for retirees, the tax brackets range from 2% to 5.75%, and income from pensions, 401ks and IRAs may be taxed above those deductions.

For retirees with significant investment or retirement account withdrawals, this may reduce overall tax efficiency, depending on their income strategy.

COST OF LIVING VARIES WIDELY

Virginia’s affordability depends largely on where you settle:

• Northern Virginia is known for its high cost of living, particularly in areas near Washington, D.C.
• Coastal and suburban regions can offer more affordability but are still above national averages in some cases.
• Rural and mountain areas are often more budget-friendly but may come with trade-offs like fewer amenities or longer drives to quality health care.
• Housing costs vary significantly across the state. The median home prices in early 2025 ranged from $664,000 in Northern Virginia to under $300,000 in areas like Roanoke and Lynchburg – making location a key factor in retirement planning.

It’s worth evaluating housing costs, taxes, transportation and access to daily essentials in any area you're considering.

TRAFFIC AND URBAN CONGESTION IN SOME AREAS

If you plan to retire near a city – especially Northern Virginia or around Richmond – traffic congestion is something to keep in mind. Commuting times can be long, and growth in some suburban areas has outpaced infrastructure updates.

This can affect everything from doctor’s visits to visiting family or simply running errands. In more rural areas, the issue may flip – less congestion but longer travel distances.

UNPREDICTABLE WEATHER AND STORM RISKS

Virginia doesn’t experience hurricanes as frequently as some other southern states, but coastal areas are still at risk during storm season. Inland, retirees should be prepared for:

• Hot, humid summers, especially in central and eastern Virginia
• Occasional snow or ice in winter, particularly in the western and northern parts of the state.
• Severe storms, including thunderstorms and the rare tornado in the spring and summer

Having a home with backup power or access to emergency resources can offer added peace of mind.

IS VIRGINIA RIGHT FOR YOUR RETIREMENT?

Virginia offers a compelling lifestyle for retirees who value variety, culture and a balanced approach to taxation. With its scenic beauty, strong health care network and rich history, the state appeals to those who want to stay active, connected and supported during their retirement years.

You may find Virginia especially appealing if you:

• Enjoy seasonal change and access to nature year-round
• Value being close to family and travel hubs on the East Coast
• Want access to high-quality health care without moving too far from urban convenience
• Prefer a mix of lifestyle options, from quiet towns to vibrant cities

However, if minimizing taxes is your top priority or you’re particularly sensitive to humidity or snow, it may be worth comparing Virginia with other low-tax retirement destinations before making a final decision.

PLAN A RETIREMENT THAT FITS YOUR FUTURE

At Edelman Financial Engines, we’re here to help you create a retirement plan that fits your life – and your location. Our experienced advisors can provide guidance on everything from managing income and investments to optimizing taxes and navigating big decisions with confidence.

So, whether Virginia feels like home or you’re still weighing your options, an advisor can help you take the next step with a strategy that’s built around your goals so you can start planning the retirement you deserve.