Virginia taxes personal income at rates up to 5.75%, while Texas has no state income tax at all. For a single filer earning $75,000, that works out to roughly $3,500 a year paid to Virginia and nothing paid to Texas on the same wages. The headline comparison between Virginia and Texas state income tax is that simple, but the full picture isn’t: Texas makes up a large share of the difference through property and sales taxes, and Virginia’s residency rules can keep taxing you even after you think you’ve left.
What Virginia Charges on Your Income
Virginia runs a four-bracket progressive system that has been in place since 1990:
- 2% on the first $3,000 of taxable income
- 3% from $3,001 to $5,000
- 5% from $5,001 to $17,000
- 5.75% on everything above $17,0001Virginia Code Commission. Virginia Code 58.1-320 – Imposition of Tax
The brackets are the same for single filers, married couples filing jointly, and heads of household. Because the top rate starts at $17,000, most working adults pay close to 5.75% on the bulk of what they earn.
Before the rates apply, Virginia reduces your income by a standard deduction and personal exemptions. For tax years 2025 and 2026, the standard deduction is $8,750 for single filers and $17,500 for married couples filing jointly.2Virginia Code Commission. Virginia Code 58.1-322.03 – Virginia Taxable Income Deductions Each filer also claims a personal exemption of $930 per person, including dependents.3Virginia Tax. Exemptions
A Worked Example
Take a single person earning $75,000 in Virginia. Subtracting the $8,750 standard deduction and $930 personal exemption leaves $65,320 in Virginia taxable income. The tax comes to $60 in the first bracket, $60 in the second, $600 in the third, and $2,778 on income above $17,000. Total: about $3,498, or an effective state rate near 4.7%.
A married couple filing jointly on $150,000 of combined income would owe roughly $7,370 after their larger standard deduction and two personal exemptions. A Texas resident with the same earnings owes the state nothing.
Why Texas Has No Income Tax
Texas doesn’t just skip the income tax, it’s constitutionally barred from creating one. Article 8, Section 1-r of the Texas Constitution states: “No individual may be subject to a state income tax.”4State of Texas. Texas Constitution Article 8 – Taxation and Revenue Voters added the provision on November 5, 2019, when Proposition 4 passed with about 74% approval.
Before 2019, creating an income tax required a statewide referendum. Now it would take a two-thirds vote in both chambers of the state legislature plus a majority public vote on a new constitutional amendment.4State of Texas. Texas Constitution Article 8 – Taxation and Revenue For anyone making long-term financial plans around the absence of a state income tax, that’s a strong guarantee.
One boundary worth knowing: the ban applies only to individuals. Texas still imposes a franchise tax on businesses with revenue above $2,650,000, so self-employed people and business owners should check whether their entity owes it even though their personal wages don’t.5Texas Comptroller of Public Accounts. Franchise Tax
Where Texas Takes the Money Back
Skipping an income tax doesn’t mean skipping taxes. Texas funds its government largely through property and sales taxes, and depending on where and how you live, the trade can be close to a wash.
Property Taxes
Texas property taxes are among the highest in the country, with average effective rates around 1.4% of a home’s assessed value. Virginia averages about 0.71%. On a $350,000 home, that’s roughly $4,900 a year in Texas against about $2,485 in Virginia, a difference of around $2,400. In expensive Texas metros like Austin and Dallas, where assessed values have climbed sharply, the yearly property tax bill can rival or exceed what a Virginia resident would pay in state income tax.
Virginia also charges an annual personal property tax on vehicles, which Texas does not. Every Virginia locality assesses this tax based on the vehicle’s value as of January 1, and rates vary by county and city. For a household with two newer cars, it can add several hundred dollars a year.
Sales Taxes
The Texas state sales tax is 6.25%, and local jurisdictions can add up to 2%, bringing the combined rate to a maximum of 8.25% in most metro areas.6Texas Comptroller of Public Accounts. Local Sales and Use Tax Collection – A Guide for Sellers Virginia’s general rate is 5.3% in most of the state, rising to 6% in Northern Virginia, Hampton Roads, and the Richmond area, and to 7% in parts of the Historic Triangle like Williamsburg.7Virginia Tax. Retail Sales and Use Tax The Texas rate is higher almost everywhere, but Virginia applies its sales tax to groceries at a reduced rate while Texas doesn’t tax groceries at all.
Who Comes Out Ahead
For most wage earners, Texas still wins on total state tax burden. Income tax savings outweigh the higher property and sales costs. The gap narrows quickly for homeowners with expensive houses and shrinks to almost nothing for retirees on fixed incomes who would owe little Virginia income tax anyway. Running your own numbers matters more than any rule of thumb.
When Virginia Can Still Tax You After You Leave
Virginia defines two kinds of residents, and either one owes Virginia tax on worldwide income.
A domiciliary resident is someone whose permanent home is in Virginia, meaning the place you intend to return to even while temporarily living somewhere else. The state looks at where you’re registered to vote, where your car is titled, where your spouse and children live, and where you own real estate.8Virginia Code Commission. Virginia Code 58.1-302 – Definitions Working in Texas for months at a time won’t break your Virginia domicile if you keep a home there and haven’t taken clear steps to establish a new permanent residence elsewhere.
An actual resident is anyone who keeps a place to live in Virginia and is physically present for more than 183 days during the tax year, even without intending to stay permanently.8Virginia Code Commission. Virginia Code 58.1-302 – Definitions This catches people who split time between states.
Texas residency is simpler because no income tax hangs on it. Establishing it matters for a driver’s license, voter registration, and in-state college tuition. New arrivals can drive on their out-of-state license for up to 90 days but should apply for a Texas license within that window.9Texas Department of Public Safety. Moving to Texas – A Guide to Driver Licenses and IDs If you’re leaving Virginia, taking these concrete steps helps show you’ve abandoned your Virginia domicile.
Filing If You Move Between the Two States
Virginia requires a return from anyone with Virginia adjusted gross income at or above $11,950 (single) or $23,900 (married filing jointly).10Virginia Tax. Who Must File11Virginia Tax. When to File12Virginia Department of Taxation. Virginia Automatic Extension Payment Voucher for Individuals
Which form you file depends on your residency during the year. Full-year residents use Form 760. Part-year residents who moved into or out of Virginia use Form 760PY, which prorates income and deductions based on the portion of the year you were a resident.13Virginia Department of Taxation. Virginia 2025 Form 760PY – Virginia Part-Year Resident Income Tax Return Nonresidents who still earn income from Virginia sources, such as a rental property or contract work performed in the state, use Form 763.14Virginia Department of Taxation. Virginia 2025 Form 763 Non-Resident Individual Income Tax Instructions
Form 760PY is the one most people moving to Texas will encounter. Track your move date carefully, because the number of days you were a Virginia resident determines how much income the state can tax. A Texas lease start date, the date you changed your driver’s license, and utility connection records all help establish a clean break.
Texas has no equivalent return. No forms, no state-level audits of personal earnings, and nothing withheld from your paycheck beyond federal taxes.
What Happens If You Miss Virginia’s Deadline
Missing May 1 in Virginia triggers two separate penalties. A late payment penalty of 6% of the unpaid tax accrues each month, up to 30%.15Virginia Tax. Virginia Tax Penalty and Interest Updates A separate late filing penalty of 6% per month, also capped at 30%, applies if you haven’t filed more than six months after the due date. Interest runs on the unpaid balance from May 1 until you pay.
The automatic extension to November 1 protects you from the late filing penalty but not from late payment penalties or interest. If you’re relocating to Texas mid-year and know you’ll owe Virginia tax, make an estimated payment by May 1 using Form 760IP. People who forget about their Virginia obligation after settling into Texas are the ones who end up with a 30% penalty stacked on top of the tax itself.