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Abstract Landward migration of coastal ecosystems in response to sea-level rise is altering coastal carbon dynamics. Although such landscapes rapidly accumulate soil carbon, barrier-island migration jeopardizes long-term storage through burial and exposure of organic-rich backbarrier deposits along the lower beach and shoreface. Here, we quantify the carbon flux associated with the seaside erosion of backbarrier lagoon and peat deposits along the Virginia Atlantic Coast. Barrier transgression leads to the release of approximately 26.1 Gg of organic carbon annually. Recent (1994–2017 C.E.) erosion rates exceed annual soil carbon accumulation rates (1984–2020) in adjacent backbarrier ecosystems by approximately 30%. Additionally, shoreface erosion of thick lagoon sediments accounts for >80% of total carbon losses, despite containing lower carbon densities than overlying salt marsh peat. Together, these results emphasize the impermanence of carbon stored in coastal environments and suggest that existing landscape-scale carbon budgets may overstate the magnitude of the coastal carbon sink.