Virginia has a state income tax, and it applies to most wages, retirement income, and investment earnings

Virginia taxes your income at rates between 2 percent and 5.75 percent, depending on how much you earn. Unlike some states that have no income tax at all, Virginia requires residents and anyone earning money within the state to file a state tax return if their income exceeds the filing threshold. The tax is progressive, meaning higher earners pay a higher percentage.

Your federal income tax and Virginia income tax are separate. You file both returns, and Virginia does not give you a credit for federal taxes paid. If you work in Virginia but live in another state, you may owe Virginia tax on wages earned here, though your home state might offer a credit to avoid double taxation.

Key Takeaways

  • Virginia income tax rates range from 2 percent on the lowest bracket to 5.75 percent on income over $17,000 for single filers, with different brackets for married and head-of-household status.
  • You must file a Virginia return if your income exceeds $12,000 (single), $24,000 (married filing jointly), or $18,000 (head of household) for the 2024 tax year.
  • Virginia taxes wages, self-employment income, interest, dividends, retirement distributions, and capital gains, though some retirement income qualifies for partial exemption.
  • If you work in Virginia but live elsewhere, you owe Virginia tax on wages earned in the state, though your home state may offer a credit to prevent paying tax twice on the same income.
  • You file Virginia taxes using Form 760 (the Virginia Individual Income Tax Return) and can file electronically through the Virginia Department of Taxation website or by mail.

Virginia income tax brackets and rates for 2024

Virginia uses six tax brackets. The rates increase as your income rises, and the brackets differ depending on your filing status. For single filers in 2024, the brackets are: 2 percent on income up to $3,000; 3 percent from $3,001 to $5,000; 5 percent from $5,001 to $17,000; and 5.75 percent on income over $17,000. Married couples filing jointly have higher income thresholds before moving to the next bracket, and head-of-household filers fall somewhere in between.

These brackets adjust slightly each year for inflation. The Virginia Department of Taxation publishes updated brackets in January, so if you are planning ahead or looking at a prior year, check their website for the exact numbers that applied. Your tax software or a tax preparer will use the correct brackets for the year you are filing.

Virginia also allows a standard deduction, which reduces the income subject to tax. For 2024, the standard deduction is $4,500 for single filers and $9,000 for married couples filing jointly. If your total income is below these amounts, you may not owe Virginia tax even if you have some income.

What income Virginia taxes and what it does not

Virginia taxes most types of income: wages from employment, self-employment income, interest earned on savings accounts and bonds, dividends from stocks, capital gains from selling investments, and distributions from retirement accounts like IRAs and 401(k)s. If you receive rental income, that is taxable too.

Some income is partially or fully exempt. Military retirement pay is exempt from Virginia tax. If you are over 59½ and receive distributions from a may have access to retirement plan, you can exclude up to $12,000 of that income (or $24,000 if married filing jointly). Social Security benefits are not taxed by Virginia. Certain types of interest income, such as interest from U.S. Treasury bonds, may be exempt under federal law, and Virginia honors that exemption.

Unemployment benefits are taxable in Virginia. Child support and alimony received are not taxable. Gifts and inheritances are not taxable income. If you are unsure whether a specific type of income counts, the Virginia Department of Taxation publishes guidance on their website, or you can contact them directly.

Filing requirements and important date

You must file a Virginia return by April 15 if your income exceeds the filing threshold for your status. For 2024, that threshold is $12,000 for single filers, $24,000 for married couples filing jointly, $18,000 for head-of-household filers, and $12,000 for married couples filing separately. If you are self-employed, you must file if your net self-employment income is $400 or more, regardless of whether you meet the income threshold.

You file using Form 760 (the Virginia Individual Income Tax Return). You can file electronically through the Virginia Department of Taxation website, which offers free e-file options, or you can print and mail the form. If you file electronically and are due a refund, you typically receive it within three to four weeks. If you mail a paper return, allow six to eight weeks.

If you cannot file by April 15, you can request an extension, which gives you until October 15 to file. An extension delays your filing important date but does not delay your tax payment important date — if you owe tax, it is still due April 15, and interest accrues on any unpaid balance after that date.

How to file your Virginia income tax return

Start by gathering your documents: your W-2 forms from employers, 1099 forms for self-employment or investment income, mortgage interest statements if you itemize deductions, and records of any estimated tax payments you made during the year. You will also need your Social Security number and your spouse's if filing jointly.

You can use tax software (such as TurboTax, H&R Block, or TaxAct) to prepare your return, and most software will walk you through the Virginia return as part of the federal return. Alternatively, you can read Form 760 from the Virginia Department of Taxation website and fill it out by hand. The form includes worksheets to help you calculate your tax liability.

If you file electronically, you submit your return directly through the Virginia Department of Taxation's e-file system or through approved tax software. If you mail your return, send it to the Virginia Department of Taxation at the address listed on the form. Keep a copy for your records.

Nonresidents and part-year residents

If you moved to Virginia partway through the year or moved away, you file as a part-year resident. You report only the income earned while you were a Virginia resident. You will need to show the date you moved in or out, so keep documentation like a lease, utility bill, or driver's license change.

If you worked in Virginia but lived in another state for the entire year, you are a nonresident for Virginia tax purposes. You still owe Virginia tax on income earned in Virginia, but you do not owe tax on income earned elsewhere. Your home state may offer a credit for taxes paid to Virginia to prevent double taxation, though this varies by state. Check with your home state's tax authority or a tax preparer to understand how your situation is handled.

Deductions and credits available in Virginia

Virginia allows you to take either the standard deduction or itemize deductions, just as you do on your federal return. If you itemize, you can deduct mortgage interest, property taxes, charitable contributions, and medical expenses (subject to the same limits as federal tax). Most people benefit from the standard deduction, which is simpler and often larger.

Virginia offers several tax credits that reduce your tax dollar-for-dollar. The Earned Income Tax Credit (EITC) is available to lower-income working individuals and families. Virginia also offers credits for child and dependent care expenses, education expenses, and certain energy-efficient home improvements. You claim these credits on your return, and they directly reduce the tax you owe.

If you are over 65, you may may have access to for an additional standard deduction. If you are blind, you may also may have access to for an additional deduction. These are claimed on your return and increase the amount of income that is not taxed.

Frequently Asked Questions

Does Virginia tax retirement income differently than wages?

Virginia taxes retirement distributions the same way it taxes wages, but you can exclude up to $12,000 of retirement income per year if you are over 59½ (or $24,000 if married filing jointly). Military retirement pay is fully exempt. Social Security is not taxed by Virginia.

What happens if I do not file a Virginia tax return?

If you owe tax and do not file, Virginia assesses penalties and interest on the unpaid amount. The penalty starts at 5 percent of the unpaid tax and increases the longer it remains unpaid. If you are due a refund but do not file, you can still claim it, but you must file within three years of the original important date.

Can I file my Virginia return electronically for free?

Yes. The Virginia Department of Taxation offers free e-file through their website, and many tax software providers offer free federal and state filing if your income is below a certain threshold. Check the Virginia Department of Taxation website for a list of approved providers.

Do I owe Virginia tax if I work remotely for a company in another state?

If you live and work in Virginia, even if your employer is based elsewhere, you owe Virginia tax on your wages. If you live in another state and work remotely for a Virginia company, you generally do not owe Virginia tax on those wages, though some states have reciprocal agreements. Check with both your home state and Virginia if you are unsure.

What is the penalty for filing late or paying late?

If you file late, Virginia charges a failure-to-file penalty of 5 percent per month (up to 25 percent total) of the unpaid tax. If you pay late, the penalty is 0.5 percent per month (up to 25 percent total). Interest also accrues on unpaid tax at a rate set quarterly by the Virginia Department of Taxation.