Virginia
#14
retiree-friendly rank
- Social Security
- SS exempt from state tax
- Retirement income
- Partial retirement exclusions
- Death tax
- None
Prop 0.78% · Sales 5.77%
2026Virginia vs Illinois Retirement Taxes
Virginia and Illinois tie on this site's modeled retiree-friendliness score. Compare Social Security, pensions and IRA withdrawals, estate/inheritance taxes, and supporting property and sales rates.
By Sammy S. · Founder · AuthorUpdated for 2026
More retiree-friendly on this model
Virginia and Illinois are tied
Both states share the same modeled Social Security, retirement-income, and estate/inheritance score.
Side-by-side retirement tax scoreboard
Illinois
#14
retiree-friendly rank
- Social Security
- SS exempt from state tax
- Retirement income
- Retirement income exempt
- Death tax
- Estate tax
Prop 1.88% · Sales 8.98%
Retirement tax metric comparison
Rankings emphasize income and death taxes. Property and sales rates matter for cash flow but do not drive the retiree-friendliness score.
| Metric | Virginia | Illinois |
|---|---|---|
| Retiree-friendly rank | #14 | #14 |
| Social Security | SS exempt from state tax | SS exempt from state tax |
| Retirement income | Partial retirement exclusions | Retirement income exempt |
| Estate / inheritance | None | Estate tax |
| Estate exemption | — | $4M |
| Estate top rate | — | 16% |
| Effective property tax | 0.78% | 1.88% |
| Combined sales tax | 5.77% | 8.98% |
State rules explained
Why Virginia and Illinois differ for retirees
The gap is rarely one rule. Social Security thresholds, pension exclusions, and estate taxes can each flip which state looks better for a given household.
Virginia rules
Exempts Social Security with an age-based deduction for other income.
Virginia does not tax Social Security benefits at the state level. Federal tax rules still apply.
Social Security exempt. Age deduction up to about $12,000 (age 65+) may reduce taxable income—confirm Form 760 instructions.
- Property
- 0.78%
- Sales
- 5.77%
Illinois rules
Taxes wages but fully exempts Social Security and most retirement distributions; still has an estate tax.
Illinois does not tax Social Security benefits at the state level. Federal tax rules still apply.
Pensions, IRA, 401(k), and Social Security are generally exempt from Illinois income tax.
Estate tax: exemption about $4M, top rate about 16%.
- Property
- 1.88%
- Sales
- 8.98%
Income mix matters
A household living mostly on Social Security may prefer different rules than one drawing large IRA RMDs. Compare Virginia and Illinois against your actual income mix.
Death taxes are separate
Federal estate tax can still apply above about $15M. State estate or inheritance tax is an extra layer in some states.
Property & sales still count
Virginia property 0.78% vs Illinois 1.88%; sales 5.77% vs 8.98%.
Compare a different pair
Compare any two states
Social Security, pensions/IRA, estate taxes, and supporting property/sales rates.
Related tools
Estimate federal retirement figures
Use Social Security and RMD tools, then apply each state's rules from this comparison.
Virginia vs Illinois retirement tax FAQs
Virginia and Illinois tie on the modeled retiree-friendliness score. Also compare property tax (0.78% vs 1.88%) and combined sales tax (5.77% vs 8.98%).
Virginia: ss exempt from state tax. Illinois: ss exempt from state tax. Federal Social Security tax rules apply in both states.
Virginia: partial retirement exclusions. Illinois: retirement income exempt.
Virginia: no estate tax. Illinois: estate tax (exemption about $4M).
Not always. Property taxes, sales taxes, and estate taxes can offset income-tax savings. Compare total household exposure, not income tax alone.
Federal income tax, Medicare IRMAA surcharges, and the federal estate tax framework do not depend on the state of residence in the same way state income tax does. State rules sit on top of federal rules.
Related retirement tax comparisons
Educational comparison only. Confirm current state return instructions and estate planning rules before relocating.