The Short Answer
Active-duty members serving 90+ consecutive days with military pay under $30,000 may subtract up to $15,000; otherwise pay is taxed at rates up to 5.75%, and nonresidents are taxed only on non-military Virginia income. Your base pay is set by the federal pay table — identical to every other state for your rank and years of service. What actually changes in Virginia is your BAH (averaging $1,900/mo without dependents and $2,300/mo with dependents) and how Virginia treats the taxable portion of your pay.
State tax status: ~ PARTIAL EXEMPT
2026 Worked Example — E-5, 6 Years, With Dependents in Virginia
Here is how the math actually lands for a mid-career enlisted member stationed in Virginia, built the way I read my own LES. Base pay and BAS are federal; the Virginia BAH figure is the state average.
| Monthly line item | Amount | Taxable? |
|---|---|---|
| Base pay (E-5, over 6 yrs) | $3,874 | Yes (federal + state) |
| BAH with dependents (Virginia avg) | $2,300 | No — tax-free |
| BAS (enlisted) | $476.95 | No — tax-free |
| Gross monthly entitlements | $6,650.95 | — |
| Taxable income (base pay only) | $3,874 | — |
| Est. Virginia state income tax | varies — see notes | — |
Only the $3,874 of base pay is taxable — the $2,776.95 of BAH + BAS is completely tax-free. Run your exact rank, ZIP, and dependency status in the Military Pay Calculator for a precise estimate.
How Virginia Taxes Each Type of Military Pay
Active-Duty Base Pay
Active-duty members serving 90+ consecutive days with military pay under $30,000 may subtract up to $15,000; otherwise pay is taxed at rates up to 5.75%, and nonresidents are taxed only on non-military Virginia income.
Guard & Reserve Drill Pay
Virginia National Guard members (rank O-6 and below) may subtract the lesser of up to 39 days of service pay or $5,500.
Military Retirement Pay
Military retirement is partially exempt with a subtraction of up to $30,000 for tax year 2025, increasing to up to $40,000 for tax year 2026 (no longer age-restricted).
VA Disability Compensation
VA disability compensation is exempt federally and is not taxed by Virginia.
SCRA & Residency in Virginia
A nonresident sailor homeported at Naval Station Norfolk who keeps another state's legal residence owes no Virginia tax on military pay under SCRA, and a spouse may claim MSRRA.
This is the single most misunderstood rule in military pay. Your home of record / state of legal residence — not your duty station — generally determines who can tax your military pay. Changing it is a deliberate act, not something that happens automatically when you PCS.
Major Military Installations in Virginia
- Naval Station Norfolk
- Joint Base Langley-Eustis
- Marine Corps Base Quantico
- Naval Air Station Oceana
BAH is set by the Military Housing Area covering your duty ZIP. Verify your exact rate at the official DoD BAH lookup.
Official Sources
FAQ — Military Pay in Virginia
Does Virginia tax my military base pay?
Active-duty members serving 90+ consecutive days with military pay under $30,000 may subtract up to $15,000; otherwise pay is taxed at rates up to 5.75%, and nonresidents are taxed only on non-military Virginia income.
Is my BAH taxed in Virginia?
No. BAH is federally tax-free and is never counted as income for Virginia state income tax, regardless of how Virginia treats base pay.
Does Virginia tax military retirement pay?
Military retirement is partially exempt with a subtraction of up to $30,000 for tax year 2025, increasing to up to $40,000 for tax year 2026 (no longer age-restricted).
I'm stationed in Virginia but my home of record is elsewhere — who taxes me?
A nonresident sailor homeported at Naval Station Norfolk who keeps another state's legal residence owes no Virginia tax on military pay under SCRA, and a spouse may claim MSRRA.