Virginia Tax Exemptions 2026 Full Guide – Virginia tax exemptions for 2026 offer significant relief for residents, seniors, veterans, families, and businesses. Whether you’re filing your 2026 Virginia individual income tax return or managing property and sales taxes, understanding available exemptions, deductions, subtractions, and credits can lower your tax bill substantially.
This comprehensive 2026 guide covers everything based on official Virginia Department of Taxation resources and current state law. Always verify details with tax.virginia.gov or a tax professional, as local rules and your situation may vary.
What Are Virginia Tax Exemptions in 2026?
Virginia tax exemptions reduce or eliminate your liability for state income tax, real estate/personal property taxes, and sales/use taxes. They include:
- Personal exemptions and deductions that lower taxable income.
- Subtractions for specific income types (e.g., military benefits, Social Security).
- Property tax relief for veterans, seniors, and disabled residents (state-mandated or local).
- Sales tax exemptions for certain purchases, organizations, and items.
For tax year 2026, key amounts like personal exemptions and the standard deduction remain stable following recent increases, with Virginia maintaining fixed-date conformity to federal tax rules as of December 31, 2025.
Virginia Income Tax Exemptions and Personal Exemptions for 2026
Virginia allows generous personal exemptions on your individual income tax return (Form 760).
- Base personal exemption: $930 each for yourself, your spouse (if filing jointly or separately as required), and each dependent claimed on your federal return.
- Additional exemptions: $800 each if you (or your spouse) are age 65 or older by January 1, 2026, or legally blind per federal rules.
Part-year residents prorate these amounts. Married couples using the Spouse Tax Adjustment must claim exemptions separately. These directly reduce Virginia taxable income (VTI).
Tip: Claim the same number of exemptions as on your federal return unless your Virginia filing status differs.
Standard Deduction and Other Income Tax Deductions in 2026
If you take the federal standard deduction, you must use Virginia’s version:
- Single or married filing separately: $8,750
- Married filing jointly: $17,500
These amounts apply for 2026 (following the 2025 increase) and are set to remain unless further legislation changes them.
Additional deductions include:
- Child and dependent care expenses (up to $3,000 for one qualifying person or $6,000 for two or more).
- Foster care deduction: $1,000 per child.
- Virginia 529 plan contributions (lesser of $4,000 or actual amount contributed per account if under age 70; full amount if 70+).
- ABLEnow account contributions.
- Long-term health care premiums, organ donor expenses, and more (see full list on tax.virginia.gov/deductions).
Itemizers use Virginia Schedule A with most federal deductions allowed (with residency adjustments).
Key Subtractions from Virginia Taxable Income in 2026
Subtractions remove certain income from your federal adjusted gross income (FAGI) when calculating Virginia taxable income. Common ones include:
- Military benefits subtraction (up to $40,000 for tax years 2025 and later).
- Social Security benefits (Virginia does not tax them).
- Certain retirement income, disability payments, and other state-specific exclusions.
Full details appear on the official Subtractions page. Virginia deconforms from some federal provisions (e.g., certain bonus depreciation, NOL carrybacks), so track records carefully.
Virginia Tax Credits for 2026
Credits directly reduce your tax or provide refunds:
- Virginia Earned Income Tax Credit (EITC): Refundable and non-refundable options for low-income workers (percentage of federal EITC).
- Credit for Low-Income Individuals.
- Other credits for education, energy efficiency, and more.
Low-income taxpayers should check eligibility on tax.virginia.gov.
Property Tax Exemptions in Virginia for 2026
Virginia offers both statewide and local property tax relief.
Disabled Veterans Property Tax Exemption
100% service-connected, permanently and totally disabled veterans (per VA rating, including certain IU cases) qualify for a full exemption on their principal residence and up to one acre of land. Unremarried surviving spouses also qualify. Apply through your local commissioner of the revenue with VA documentation. This is a state constitutional mandate.
Elderly and Disabled Real Estate Tax Relief
Most localities offer optional relief (exemption or deferral) for residents age 65+ or totally/permanently disabled. Eligibility depends on:
- Household income and net worth limits (vary by locality; e.g., often under $50,000–$140,000 income and $150,000–$500,000+ net worth excluding home).
- Primary residence ownership and occupancy.
Apply annually (deadlines typically February–June 2026; e.g., April 1 in many counties). Percentages of relief vary by income. Check your county/city website or contact the local commissioner of the revenue.
Note: Personal property tax relief (e.g., on vehicles) may also apply in some areas.
Sales and Use Tax Exemptions in Virginia for 2026
Virginia’s 5.3% state sales tax (plus local) exempts many purchases under Va. Code § 58.1-609.1:
- Government purchases (federal, state, local).
- Certain public transit, port authority, and specific nonprofit items.
- Electricity, natural gas, water, gold/silver bullion, and coins.
- Items sold in correctional facilities or by prisoners (art).
Businesses use exemption certificates (e.g., ST-12). Data centers currently enjoy a major sales/use tax exemption on qualifying equipment (set to continue into 2027, though legislative proposals exist to phase it out). Food for home consumption and other items follow specific rules—consult the full list on tax.virginia.gov.
Virginia also offers periodic sales tax holidays.
How to Claim Virginia Tax Exemptions in 2026?
- Income tax: File Form 760 (residents) or appropriate part-year/nonresident form by May 1, 2027 (for calendar-year filers). Use eFile for faster refunds.
- Property tax: Submit applications to your local commissioner of the revenue/assessor’s office with proof (VA letters, tax returns, disability documentation).
- Sales tax: Provide exemption certificates at purchase or file for refunds.
Track changes via tax.virginia.gov or subscribe to updates. Use the “Where’s My Refund?” tool and estimated payment options if needed.
Recent Changes and What to Watch for in 2026
- Standard deduction stabilized at higher levels.
- Military benefits subtraction at $40,000+.
- Fixed IRC conformity date (Dec. 31, 2025).
- Potential legislative updates on EITC, data centers, or grocery tax (monitor 2026 session outcomes).
No major new exemptions are confirmed for 2026, but local programs adjust income/net worth limits annually.
Frequently Asked Questions About Virginia Tax Exemptions 2026
Who qualifies for the veteran property tax exemption?
100% P&T disabled veterans and qualifying surviving spouses.
Are Social Security benefits taxed in Virginia?
No—they are fully subtracted.
Do I need to file an application for income tax exemptions?
No—claim them directly on your return.
When are property tax relief applications due?
Varies by locality—often early 2026 (check locally).
Final Tips for Maximizing Virginia Tax Savings in 2026
Review your situation early, gather documents, and e-file for speed. For personalized advice, visit tax.virginia.gov, contact Virginia Tax at (804) 367-2486, or consult a licensed tax professional. Local offices handle property relief questions.
Stay informed—tax laws evolve, and claiming every available Virginia tax exemption in 2026 can mean hundreds or thousands in savings for eligible residents.
Sources: Official Virginia Department of Taxation (tax.virginia.gov) and Virginia Department of Veterans Services as of April 2026. This guide is for informational purposes only and not tax advice.