Virginia legislation · 2027 Regular Session
Virginia SB148: A BILL to amend and reenact § 58.1-322.02 of the Code of Virginia, relating to income tax subtraction; military retirement benefits; uniformed services.
Status: In committee, January 28, 2026
Income tax subtraction; military retirement benefits; uniformed services. Expands the military benefits income tax subtraction to include retirement income received for service in the uniformed services of the United States, which includes the United States Armed Forces, the commissioned corps of the National Oceanic and Atmospheric Administration, and the commissioned corps of the United States Public Health Service. Under current law, the subtraction is only allowed for military retirement income received for service in the United States Armed Forces.
What the bill says
To amend and reenact § 58.1-322.02 of the Code of Virginia, relating to income tax subtraction; military retirement benefits; uniformed services. ---------- Patron--McPike ---------- Referred to Committee on Finance and Appropriations ---------- 1. That § 58.1-322.02 of the Code of Virginia is amended and reenacted as subtractions. In computing Virginia taxable income pursuant to § 58.1-322, to the extent included in federal adjusted gross income, there shall be subtracted: 1. Income derived from obligations, or on the sale or exchange of obligations, of the United States and on obligat.
From the introduced text, January 7, 2026:
A BILL to amend and reenact § 58.1-322.02 of the Code of Virginia, relating to income tax subtraction; military retirement benefits; uniformed services. ---------- Patron--McPike ---------- Referred to Committee on Finance and Appropriations ---------- 1. That § 58.1-322.02 of the Code of Virginia is amended and reenacted as subtractions. In computing Virginia taxable income pursuant to § 58.1-322, to the extent included in federal adjusted gross income, there shall be subtracted: 1. Income derived from obligations, or on the sale or exchange of obligations, of the United States and on obligations or securities of any authority, commission, or instrumentality of the United States to the extent exempt from state income taxes under the laws of the United States, including, but not limited to, stocks, bonds, treasury bills, and treasury notes but not including interest on refunds of federal taxes, interest on equipment purchase contracts, or interest on other normal business transactions. 2. Income derived from obligations, or on the sale or exchange of obligations, of the Commonwealth or of any political subdivision or instrumentality of the Commonwealth. 3. Benefits received under Title II of the Social Security Act and other benefits subject to federal income taxation solely pursuant to § 86 of the Internal Revenue Code. 4. Up to $20,000 of disability income, as defined in § 22(c)(2)(B)(iii) of the …