Yes, Virginia does have state taxes. The Commonwealth collects a graduated individual income tax that tops out at 5.75%, a 6% corporate income tax, sales tax ranging from 5.3% to 7% depending on where you shop, and excise taxes on motor fuels, tobacco, and alcohol. Property taxes exist in Virginia too, but the state itself does not levy them; cities, counties, and towns do. Virginia has no estate tax and no inheritance tax on most estates.
Individual Income Tax Rates
Virginia uses four income tax brackets, and the top bracket starts low enough that most working residents hit it on the bulk of their earnings.1Virginia Department of Taxation. Individual Income Tax Calculator
- $0 to $3,000: 2%
- $3,001 to $5,000: $60 plus 3% of the amount over $3,000
- $5,001 to $17,000: $120 plus 5% of the amount over $5,000
- $17,001 and above: $720 plus 5.75% of the amount over $17,000
A Virginian with $54,000 in taxable income owes $720 plus 5.75% of the $37,000 above the top threshold, or roughly $2,848 before credits.
Deductions, Exemptions, and Credits
The standard deduction for the 2025 and 2026 tax years is $8,750 for single filers and $17,500 for married couples filing jointly.2Virginia Department of Taxation. 2026 Fiscal Impact Statement – SB 662 You can also claim a personal exemption of $930 for yourself, your spouse, and each dependent, plus an extra $800 exemption per person if you or your spouse are blind or at least 65.3Virginia Department of Taxation. Exemptions
Virginia offers a state Earned Income Tax Credit worth 20% of the federal EITC, available in both refundable and non-refundable versions.4Virginia Department of Taxation. Virginia Earned Income Tax Credit and Credit for Low Income Individuals The Department of Taxation lists further subtractions that can lower your Virginia taxable income beyond the federal starting point.5Virginia Department of Taxation. Deductions
Who Has to File a Virginia Return
You must file a Virginia return if you are required to file federally and your Virginia adjusted gross income is at least $11,950 for a single filer or $23,900 for a married couple filing jointly.6Virginia Department of Taxation. Who Must File Part-year residents and nonresidents with Virginia-source income file too.
Virginia treats you as a resident if you are domiciled in the state or if you keep a place to live in Virginia for more than 183 days during the year.7Virginia Department of Taxation. Residency Status If neither applies, you can file as a nonresident. Anyone whose expected Virginia liability after withholding tops $150 has to make quarterly estimated payments, which is the trap most freelancers and investors run into.8Virginia Department of Taxation. Individual Estimated Tax Payments
How Virginia Taxes Retirement Income
Social Security benefits that are taxable federally are fully exempt in Virginia. The state subtracts them out when calculating Virginia taxable income, so retirees living mostly on Social Security typically owe nothing on those benefits.
Virginia also offers an age deduction for residents born on or before January 1, 1960. If you were born before January 2, 1939, you can subtract up to $12,000, and a qualifying spouse can do the same. For those born between January 2, 1939, and January 1, 1960, the deduction phases out by $1 for every $1 of adjusted federal AGI over $50,000 (single) or $75,000 (married filing jointly).9Virginia Department of Taxation. Subtractions
Sales and Use Tax
Virginia’s sales tax rate depends on the locality. The state portion is 4.3% with a mandatory 1% local add-on, and some regions layer more on top.10Virginia Department of Taxation. Retail Sales and Use Tax
- 5.3% across most of Virginia
- 6% in Northern Virginia, Hampton Roads, and Central Virginia, where a 0.7% regional transportation tax applies
- 6.3% in Charlotte, Gloucester, Northampton, and Patrick counties
- 7% in the Historic Triangle of Williamsburg, James City County, and York County
Groceries for home consumption and certain essential personal hygiene products are taxed at a flat 1% statewide.11Virginia Department of Taxation. Grocery Tax Prepared meals and restaurant food pay the full local rate. Prescription drugs, eyeglasses, hearing aids, and durable medical equipment are exempt.12Virginia Department of Taxation. Sales Tax Exemptions
If you buy from an out-of-state seller that doesn’t collect Virginia tax, use tax applies at your local rate.13Virginia Department of Taxation. Consumers Use Tax There is a small exemption for out-of-state mail-order catalog purchases totaling $100 or less per year; above that, you owe use tax on the full amount.
Property Tax
Virginia has no state property tax. Cities, counties, and towns set their own rates and handle assessment and collection on real estate and on tangible personal property like vehicles, boats, and business equipment.14Virginia Department of Taxation. Property Tax and Real Estate Tax Questions Rates vary widely; a rural county homeowner may pay an effective rate under 0.5% while a Northern Virginia homeowner pays considerably more. If you run a business, many Virginia localities also collect a Business, Professional and Occupational License (BPOL) tax on gross receipts, so check with your local commissioner of the revenue.
Corporate Income Tax
Virginia imposes a flat 6% tax on the income of corporations organized in the Commonwealth and on out-of-state corporations with Virginia-source income.15Virginia Code Commission. Virginia Code 58.1-400 – Imposition of Tax The base starts with federal taxable income and applies Virginia-specific additions and subtractions.16Cornell Law Institute. Virginia Regulations 23VAC10-120-20 Multi-state corporations apportion income to Virginia using a formula built on sales, payroll, and property in the state.
Fuel, Tobacco, and Alcohol Taxes
Virginia’s motor fuels tax adjusts every July 1 based on the Consumer Price Index, and the statute forbids the rate from dropping.17Virginia Code Commission. Virginia Code 58.1-2217 – Taxes Levied; Rate From July 1, 2025 through June 30, 2026, gasoline is taxed at 31.7 cents per gallon, diesel at 32.7 cents, aviation fuel at 5 cents, and alternative fuels at 31.7 cents per gasoline gallon equivalent.18Virginia Department of Motor Vehicles. Fuels Tax Rates and Alternative Fuels Conversion A separate storage tank fee of 0.6 cents per gallon also applies.
Cigarettes are taxed at $0.60 per pack, or $0.45 per pack for heated tobacco products. Other tobacco products, including cigars and pipe tobacco, pay 10% of the manufacturer’s sales price.19Virginia Department of Taxation. Cigarette Tax
Beer carries an excise tax of roughly 25.65 cents per gallon, with wine taxed under a separate statute.20Virginia Code Commission. Virginia Code 4.1-236 – Excise Tax on Beer and Wine Coolers Distilled spirits work differently because Virginia is a control state: ABC stores are the sole retail outlet, and a 20% state tax is baked into the shelf price along with handling fees and markup.21Virginia ABC. Pricing Information
Estate and Inheritance Tax
Virginia has no estate tax and no inheritance tax for the vast majority of estates. The state’s old estate tax was tied to a federal credit that was eliminated, effectively repealing Virginia’s tax as of July 1, 2007. Some narrow remainder interests can still trigger inheritance tax, but most heirs owe nothing to Virginia.22Virginia Department of Taxation. Estate and Inheritance Taxes
Filing Deadline and Penalties
Virginia’s individual income tax return is due May 1, about two weeks after the federal deadline. Virginia automatically grants a six-month filing extension with no paperwork, pushing the deadline to November 1 for most filers. The extension covers only your return; any tax you owe is still due May 1, and interest runs on unpaid balances no matter what.
Late penalties add up fast:23Virginia Department of Taxation. Penalties and Interest
- Extension penalty: if you file within six months of the due date but your unpaid balance exceeds 10% of your total liability, 2% per month on the balance, up to 12%.
- Late filing penalty: if you file more than six months late, 6% per month, up to 30%.
- Late payment penalty: if you file on time but pay late, 6% per month, capped at 30%. It doesn’t stack with the late filing penalty for the same month.
Paying your best estimate by May 1 is the cleanest way to avoid the penalty stack, even if you still need the extension to finish the paperwork.