What is the tax rate for Social Security benefits?

In Virginia, the tax rate for Social Security benefits is 6%. This rate applies to single or joint filers with incomes ranging from $17,000 up to $132,000. Taxpayers with incomes lower than $17,000 do not pay taxes on their Social Security benefits, and taxpayers with incomes above $132,000 pay higher taxes on their Social Security benefits. Social Security benefits are a type of retirement income, and Virginia has a graduated tax rate that increases as income increases. For taxpayers with incomes between $17,000 and $25,750, the tax rate on Social Security benefits is 5.75%. The rate increases to 6% for incomes between $25,750 and $132,000. When total income exceeds $132,000, Social Security benefits are taxed at a rate of 6.25%. The tax rate for Social Security benefits in Virginia applies to both state and federal taxes. For taxpayers who itemize their deductions, Virginia allows a tax credit of up to 5.75% of the portion of their Social Security benefits that are taxable at the state level. This tax credit reduces the amount of taxes owed on Social Security benefits. In addition to the tax rate on Social Security benefits, Virginia also imposes an additional tax on retirement income above a certain threshold. This “retirement tax” applies to income from sources like pensions, annuities, and certain retirement accounts. The tax rate for retirement income is 0.75% for incomes up to $50,000, and increases to 2.25% for incomes over $50,000.

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What is the tax rate for Social Security benefits?

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