Virginia State Tax Rate Guide – Virginia’s tax system combines moderate rates with a progressive structure for individuals and competitive business taxes. Whether you’re a resident filing your 2025 taxes in 2026, a business owner, or planning a move to the Commonwealth, this Virginia State Tax Rate Guide breaks down the latest rates, brackets, deductions, and filing details using official and trusted sources like the Virginia Department of Taxation and the Tax Foundation.
Stay up to date with current rules—no major rate changes took effect for tax year 2025/2026, though proposed legislation for higher earners remains under discussion.
Virginia Individual Income Tax Rates and Brackets
Virginia uses a graduated (progressive) individual income tax with four brackets. The same brackets apply to all filing statuses (single, married filing jointly, head of household, etc.).
Here are the 2025 Virginia state income tax rates (filed in 2026):
| Tax Rate | Taxable Income Bracket | Tax Calculation |
|---|---|---|
| 2% | $0 – $3,000 | 2% of taxable income |
| 3% | $3,001 – $5,000 | $60 + 3% of amount over $3,000 |
| 5% | $5,001 – $17,000 | $120 + 5% of amount over $5,000 |
| 5.75% | $17,001 and above | $720 + 5.75% of amount over $17,000 |
Example: A single filer with $50,000 taxable income pays approximately $2,345 in Virginia state income tax (before credits or deductions).
Standard Deduction (2026):
- $8,750 (single or married filing separately)
- $17,500 (married filing jointly)
- $11,650 (head of household)
Personal Exemption: $930 per person (you, spouse, and dependents).
Virginia does not conform to all federal deductions—certain itemized deductions are limited.
Virginia Sales Tax Rates
Virginia’s sales tax is one of the more straightforward in the U.S. The base state sales tax rate is 4.3%, with a mandatory 1% local add-on that brings the minimum combined rate to 5.3%. Localities can add up to an additional 2.7%, so total rates range from 5.3% to 7%.
Current combined sales tax rates by region (examples as of 2026):
- Most areas: 5.3%
- Hampton Roads, Central Virginia, Northern Virginia (outside Historic Triangle): 6%
- Certain counties (e.g., Halifax, Henry): 6.3%
- Historic Triangle (James City County, Williamsburg, York County): 7%
Use the official Virginia Sales Tax Rate and Locality Code Lookup for your exact zip code.
Key exemptions include most groceries, prescription drugs, and certain clothing during the annual sales tax holiday (usually early August). Business purchases for resale are also exempt with proper documentation.
Virginia Property Tax Rates
Virginia does not have a statewide property tax rate. Instead, counties, cities, and towns set their own real estate tax rates (typically expressed per $100 of assessed value). Homes are assessed at 100% of fair market value.
Statewide averages (2026):
- Effective property tax rate: 0.73% – 0.77% of home value (below the national average of ~0.92%)
- Median annual property tax paid: $2,790 on a median home value of ~$383,700
Rates vary significantly by locality. Northern Virginia and suburban areas near D.C. tend to have higher bills due to higher property values, while rural counties are often lower. Check your local commissioner of revenue or assessor’s office for the exact rate in your area.
Common relief programs: Senior citizens, disabled veterans, and certain low-income homeowners may qualify for exemptions or deferrals.
Virginia Corporate Income Tax Rate
Virginia imposes a flat 6% corporate income tax on Virginia taxable income for C-corporations. This rate applies to both in-state and out-of-state companies doing business in Virginia.
Pass-through entities (LLCs, S-corps, partnerships) generally avoid entity-level tax and pass income through to owners’ individual returns (subject to the personal income tax rates above).
No major corporate rate reduction has been enacted for 2026, despite legislative proposals.
Other Important Virginia Taxes
- Estate and Inheritance Taxes: Virginia has no state estate tax or inheritance tax.
- Motor Fuels Tax: Gasoline and diesel are taxed at the state level (rates adjust periodically; check Virginia Tax for current cents-per-gallon).
- Unemployment Insurance: Employers pay based on experience-rated schedules.
- Recordation Tax: Applies to real estate deeds and certain mortgages.
How to File Virginia State Taxes?
Virginia state tax returns are due May 1, 2026 for calendar-year 2025 filers (or the next business day if it falls on a weekend/holiday).
Easy filing options:
- Free electronic filing through Virginia Tax’s iFile system (recommended)
- Federal/state e-file through tax software (TurboTax, H&R Block, etc.)
- Paper Form 760 (Individual Income Tax Return)
You must file if you:
- Are a Virginia resident with income
- Have Virginia-source income as a non-resident
- Owe tax or want a refund of withheld taxes
Payment options: Direct debit, credit card, or check. Virginia offers free filing for many low- and middle-income taxpayers.
Virginia Tax Credits and Deductions Worth Claiming
Popular credits include:
- Child and Dependent Care Expenses Credit
- Virginia Earned Income Tax Credit (up to 20% of federal EITC)
- Education savings and tuition credits
- Low-income housing credits (for businesses)
Always review the latest Form 760 instructions on the Virginia Department of Taxation website for eligibility.
Recent Changes and What to Watch in 2026
No statewide rate increases or decreases occurred for 2025/2026. However, lawmakers continue to debate proposals for new high-income brackets or corporate rate reductions—monitor the Virginia General Assembly and official Virginia Tax news releases for updates.
Inflation adjustments to the standard deduction and brackets are not automatic in Virginia (unlike the federal system), so “bracket creep” remains a consideration.
Final Tips for Virginia Taxpayers
- Use the official Virginia Tax website for forms, calculators, and direct deposit refunds.
- Track local sales tax rates if you shop across county lines.
- Consult a tax professional for complex situations (multi-state income, business ownership, or real estate investments).
- Set up e-file and direct deposit to get your refund faster—average processing is under 3 weeks.
This Virginia State Tax Rate Guide is based on the most current data available in 2026. Tax laws can change, so always verify with the Virginia Department of Taxation or a qualified advisor for your specific situation. Smart planning with Virginia’s competitive tax structure can help you keep more of what you earn while enjoying everything the Commonwealth has to offer.