Virginia's Income Tax Rates and Brackets

Virginia has a progressive income tax system, meaning the rate you pay depends on how much you earn. The state uses five tax brackets that range from 2% on the lowest incomes to 5.75% on the highest. Your actual rate depends on which bracket your income falls into, not your total income.

For the 2024 tax year, a single filer pays 2% on income up to $3,000, then 3% on income between $3,001 and $5,000, then 5% on income between $5,001 and $17,000, then 5.75% on income between $17,001 and $100,000, and 5.75% on anything above $100,000. If you file as married filing jointly, the income thresholds are higher—for example, the 2% bracket extends to $6,000 instead of $3,000. Virginia also offers a tax credit for low-income residents, which can reduce or eliminate your state income tax bill if you earn below a certain threshold.

Key Takeaways

  • Virginia's state income tax ranges from 2% to 5.75% depending on your income level, with five separate tax brackets for single and married filers.
  • The state sales tax is 4.3%, but localities can add up to 2.3% more, making the total sales tax between 4.3% and 6.6% depending on where you shop.
  • Property tax rates vary by county and city—there is no statewide rate—and are based on the assessed value of your home or land.
  • Virginia offers a property tax relief program for seniors and disabled residents that can lower or freeze your property tax bill.

Sales Tax in Virginia

Virginia's state sales tax is 4.3%, but this is not the full amount you pay at checkout. Most localities add their own sales tax on top of the state rate, which means the total can range from 4.3% to 6.6% depending on where you live. For example, Arlington County adds 2.3% to the state rate, bringing the total to 6.6%, while some rural counties add less.

The sales tax applies to most goods you buy in stores, but not to groceries, prescription medications, or medical equipment. Some services like haircuts and repairs are also taxed, while others like professional services are not. If you buy something online from a Virginia retailer, you typically pay Virginia sales tax. If you buy from an out-of-state retailer, the rules depend on whether that retailer has a physical presence in Virginia.

Property Tax Rates by County and City

Virginia does not have a statewide property tax rate. Instead, each county and city sets its own rate based on the assessed value of your property. The rate can range from less than 0.5% in some rural areas to over 1.2% in urban areas like Arlington. To find your specific rate, you need to check with your local assessor's office or your county's tax website.

Property tax is calculated by multiplying your home's assessed value by the local tax rate. For example, if your home is assessed at $300,000 and your county's rate is 0.8%, you would owe $2,400 per year. The assessed value is not the same as the market value—it is determined by your local assessor and is usually lower. You can appeal your assessment if you believe it is too high.

How Virginia Calculates Your Income Tax

When you file your Virginia state income tax return, you report your federal taxable income and then make adjustments specific to Virginia. Some income that is taxed federally is not taxed by Virginia, and vice versa. For example, military retirement pay is not taxed by Virginia, but interest and dividends are taxed at your regular rate.

Virginia allows you to deduct the federal income tax you paid, which lowers your Virginia taxable income. This is called the federal tax deduction and is one of the largest deductions available to Virginia residents. You can also claim the standard deduction or itemize deductions, just as you do on your federal return. If you have questions about what income to report or what deductions you can claim, the Virginia Department of Taxation publishes detailed guides on its website.

Tax Credits and Relief Programs for Virginia Residents

Virginia offers several tax credits that can reduce the amount of tax you owe. The Earned Income Tax Credit is available to low- and moderate-income workers and can result in a refund even if you owe no tax. The state also offers a credit for child and dependent care expenses, a credit for taxes paid to other states, and a credit for property taxes paid if you are a renter.

If you are a senior or disabled resident, Virginia's property tax relief program may allow you to freeze your property tax bill at its current level or reduce it based on your income. You must meet age and income requirements to may have access to. The program is administered by your local assessor's office, and you can contact them to learn whether you meet the criteria.

When and How to File Virginia Taxes

Virginia follows the federal tax important date, which is typically April 15 each year. You file your Virginia return at the same time you file your federal return, either on paper or electronically. If you file electronically, you can file your Virginia return through the Virginia Department of Taxation's website or through a tax software provider.

If you owe Virginia income tax, you can pay it when you file or set up a payment plan with the state. If you expect to owe more than $150 in tax for the year, you may need to make estimated tax payments throughout the year. Self-employed individuals and those with investment income often need to make quarterly estimated payments. The Virginia Department of Taxation website has a payment portal where you can pay online, by phone, or by mail.

Frequently Asked Questions

Do I have to pay Virginia income tax if I work in Virginia but live in another state?

Yes, Virginia taxes income earned within the state, regardless of where you live. However, you may be able to claim a credit on your home state's return for taxes paid to Virginia. The rules vary by state, so check with your home state's tax authority.

Is Social Security taxed in Virginia?

No, Virginia does not tax Social Security benefits. Military retirement pay is also exempt from Virginia income tax. However, other types of retirement income, such as distributions from IRAs and 401(k)s, are taxed at your regular rate.

What is the difference between assessed value and market value for property tax?

Market value is what your home would sell for on the open market. Assessed value is what your local assessor determines for tax purposes and is usually lower. The assessor uses sales data, property characteristics, and other factors to estimate assessed value. You can appeal if you believe the assessment is incorrect.

Can I deduct state income tax on my federal return?

Yes, you can deduct Virginia state income tax on your federal return if you itemize deductions. You can deduct either the income tax you paid or the sales tax you paid, but not both. Most taxpayers choose to deduct income tax because it is usually higher.

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

If you owe Virginia income tax and do not file, the state can assess penalties and interest on the unpaid amount. The Department of Taxation may also contact your employer or financial institutions to collect the debt. If you are owed a refund but do not file, you have a limited time to claim it—typically three years from the original due date.