Virginia's income tax brackets for 2024

Virginia taxes income at rates between 2% and 5.75%, depending on how much you earn. The state uses a progressive tax system, meaning your income is taxed at different rates as it climbs into higher brackets. You do not pay the top rate on all your income — only on the portion that falls within each bracket.

For the 2024 tax year, Virginia has six tax brackets for single filers. Income from $0 to $3,200 is taxed at 2%. From $3,201 to $12,000, the rate is 3%. From $12,001 to $60,000, it is 5.75%. Income above $60,000 stays at 5.75% — Virginia's top rate does not climb higher. If you file as married filing jointly, the bracket thresholds are roughly double, but the rates remain the same.

Key Takeaways

  • Virginia's income tax ranges from 2% on the lowest bracket to 5.75% on income above $60,000, and the rate does not increase beyond that threshold.
  • You pay different rates on different portions of your income, not the same rate on everything you earn.
  • Tax brackets adjust slightly each year for inflation, so the exact dollar amounts change annually.
  • Virginia also taxes capital gains, dividends, and interest income, though some types receive preferential treatment under state law.

How the brackets actually work with an example

Suppose you are a single filer in Virginia and earned $50,000 in 2024. You do not pay 5.75% on the whole amount. Instead, you pay 2% on the first $3,200, then 3% on the next $8,800 (from $3,201 to $12,000), then 5.75% on the remaining $38,000 (from $12,001 to $50,000). Your total Virginia income tax would be about $2,620, which is roughly 5.2% of your income — less than the top rate because part of your income fell in lower brackets.

The brackets shift slightly each year. The Virginia Department of Taxation publishes updated brackets in late 2023 for the following year, so the exact numbers for 2025 will differ slightly from 2024. If you are planning ahead or comparing years, check the department's website for the current year's brackets rather than relying on older figures.

What counts as Virginia taxable income

Virginia taxes wages, salaries, and self-employment income the same way the federal government does. It also taxes interest and dividend income at the same rates as ordinary income, though Virginia offers a small exclusion: you can exclude up to $12,000 in Virginia-source income from dividends, interest, and capital gains if you are over 65 or disabled, or up to $6,000 if you are under 65.

Capital gains — profit from selling stocks, real estate, or other assets — are taxed as ordinary income in Virginia. Unlike some states, Virginia does not offer a preferential rate for long-term capital gains. If you sold an investment for a $10,000 profit, that $10,000 is added to your income and taxed at your marginal rate.

Certain types of income are exempt from Virginia tax. These include federal tax refunds, some military pay, and income from U.S. Treasury bonds. If you receive income from out of state, Virginia generally taxes it only if you are a resident; non-residents are taxed only on Virginia-source income.

Standard deduction and filing requirements

Before you calculate tax on your income, you subtract the standard deduction. For 2024, the standard deduction in Virginia is $4,500 for single filers and $9,000 for married filing jointly. These amounts are set by Virginia and differ from the federal standard deduction, so you will use Virginia's number when filing your state return.

You must file a Virginia return if your income exceeds the standard deduction for your filing status. Even if you do not owe tax, filing can be worthwhile if you are due a refund — for instance, if your employer withheld too much or you are may have access to to a state tax credit. Virginia offers credits for child and dependent care, education expenses, and other situations, so check whether you may have access to before deciding not to file.

How withholding and estimated tax work

If you are an employee, your employer withholds Virginia income tax from each paycheck based on the W-4 form you complete. The withholding is an estimate; it may be more or less than what you actually owe. If too much is withheld, you receive a refund when you file. If too little is withheld, you owe the difference.

If you are self-employed or have income not subject to withholding, you may need to pay estimated tax quarterly. Virginia requires estimated payments if you expect to owe $150 or more in tax for the year. Payments are due April 15, June 15, September 15, and January 15 of the following year. Missing a payment can result in penalties and interest, even if you ultimately owe no tax.

Local income tax and combined burden

Virginia does not allow cities or counties to impose a local income tax. However, some localities impose a local business gross receipts tax on certain types of business income. This is separate from income tax and applies only to specific business activities, not to wages or most investment income. If you operate a business, check with your local tax assessor to see whether your locality imposes this tax.

Your total Virginia tax burden also includes sales tax (which varies by locality, typically 5.3% to 6%), property tax (which varies widely by county), and any local taxes specific to your situation. When budgeting, remember that income tax is only one piece of the picture.

Filing your Virginia return

Virginia uses Form 760, the Virginia Individual Income Tax Return, to report your income and calculate your tax. You can file electronically through Virginia's e-file system or by mail. If you use tax software, most major programs can file your Virginia return at the same time as your federal return.

The filing important date is the same as the federal important date: April 15 of the year following the tax year. If you need more time, you can request an extension, which gives you until October 15 to file. An extension to file is not an extension to pay; if you owe tax, you should pay by April 15 to avoid interest and penalties, even if you have not filed yet.

Frequently Asked Questions

Does Virginia tax Social Security benefits?

No. Virginia does not tax Social Security benefits, even if your total income is high. This is one of the few income types that receives special treatment under Virginia law. If Social Security is your only income, you do not need to file a Virginia return.

What if I moved to Virginia partway through the year?

You are a Virginia resident for tax purposes if you lived in the state for more than six months of the tax year. If you moved in partway through, you report income earned before the move to your former state and income earned after the move to Virginia. You may need to file returns in both states, though you can claim a credit on one return for taxes paid to the other.

Can I deduct federal income tax from my Virginia return?

No. Virginia does not allow a deduction for federal income tax paid. You calculate Virginia tax on your federal adjusted gross income, then explore Virginia's standard deduction and any Virginia-specific credits. Federal tax paid does not reduce your Virginia tax.

What happens if I underpay estimated tax?

Virginia charges interest and a penalty if your total withholding and estimated payments fall short of 90% of your current year tax or 100% of your prior year tax (whichever is lower). The penalty is calculated quarterly, so paying late costs more than paying on time. If you realize you will underpay, paying the next estimated payment on time can reduce the total penalty.

Is there a state earned income tax credit in Virginia?

Virginia does not have a state earned income tax credit. However, if you may have access to for the federal Earned Income Tax Credit, you may be may have access to to Virginia credits for child and dependent care or education expenses. Check the Virginia Department of Taxation website or your tax software to see which credits explore to your situation.