Virginia state income tax runs on four brackets from 2% to 5.75%, and because the top rate kicks in at just $17,000 of taxable income, most filers pay 5.75% on the bulk of what they earn. Returns are due May 1, not April 15, and the Virginia Department of Taxation administers the system. What you actually owe depends on your residency, your deductions, and credits like Virginia’s piggyback on the federal Earned Income Tax Credit.
The Tax Brackets
Virginia’s rates have not changed since 1990. Each rate applies only to the slice of income within its band, so the lower rates still cover your first dollars before the higher ones take over.1Virginia Code Commission. Virginia Code 58.1-320 – Imposition of Tax
- 2% on the first $3,000 of taxable income
- 3% on income from $3,001 to $5,000
- 5% on income from $5,001 to $17,000
- 5.75% on all income above $17,000
A worked example: on $60,000 of taxable income, you pay $720 on the first $17,000 and 5.75% on the remaining $43,000, for roughly $3,193 total.1Virginia Code Commission. Virginia Code 58.1-320 – Imposition of Tax Because the top bracket starts so low, raises and bonuses are almost always taxed at 5.75%.
What Reduces Your Taxable Income
Standard Deduction
For tax years 2025 and 2026, the Virginia standard deduction is $8,750 for single filers and $17,500 for married couples filing jointly. Married filing separately claims $8,750 each.2Virginia Code Commission. Virginia Code 58.1-322.03 – Virginia Taxable Income; Deductions
One rule trips people up: your Virginia method has to match your federal method. If you itemized federally, you must itemize in Virginia. If you took the federal standard deduction, you take the Virginia one.2Virginia Code Commission. Virginia Code 58.1-322.03 – Virginia Taxable Income; Deductions
Personal Exemptions
Virginia allows a $930 exemption for yourself, for your spouse on a joint return, and for each dependent you claimed federally.3Virginia Tax. Exemptions A family of four with two dependent children claims $3,720 in exemptions on top of the standard deduction.
Age Deduction at 65
Virginians 65 or older can deduct up to $12,000 more. The deduction phases out dollar for dollar once income (federal AGI minus Social Security and certain other federally taxed benefits) exceeds $50,000 for single filers or $75,000 for joint filers, disappearing completely at $62,000 and $87,000 respectively.4Virginia Code Commission. Code of Virginia – Article 2. Individual Income Tax
Earned Income Tax Credit
Starting with the 2026 tax year, Virginia’s EITC equals 25% of your federal credit and is fully refundable, so you get the money even if it exceeds your Virginia tax bill.5Virginia Legislative Information System. HB 1074 – State Taxation in the Commonwealth A $4,000 federal EITC becomes $1,000 added to your Virginia refund.
Who Has to File a Virginia Return
Full-year residents file Form 760 and owe Virginia tax on all income no matter where it was earned. You are a full-year resident either because Virginia is your permanent home or because you kept a place to live in the state and were physically present more than 183 days during the year.6Virginia Code Commission. Virginia Code 58.1-302 – Definitions
Part-year residents who moved in or out during the year file Form 760PY and are taxed only on income earned while living in Virginia. Nonresidents who earned Virginia-source income (wages for work done in the state, rent from Virginia property) file Form 763. All three forms begin with your federal adjusted gross income.
Reciprocity With Nearby States
Virginia has reciprocal agreements with the District of Columbia, Kentucky, Maryland, Pennsylvania, and West Virginia.7Virginia Tax. Reciprocity If you live in one of those jurisdictions and commute into Virginia for a wage or salary job, your Virginia employer should not withhold Virginia tax; you owe tax only to your home state. The reverse works too for Virginians commuting out.
The agreement covers only wages and salaries, not self-employment, business, or investment income. And if an employer in a reciprocal state mistakenly withholds that state’s tax from your pay, you have to file in that state to recover it. You cannot claim a credit for it on your Virginia return.
The May 1 Deadline and Extensions
Virginia individual returns are due May 1 for calendar-year filers, two weeks after the federal April 15 deadline.8Virginia Code Commission. Virginia Code 58.1-341 – Returns of Individuals If May 1 falls on a weekend or holiday, the deadline moves to the next business day.9Virginia Tax. When to File
Virginia grants an automatic six-month filing extension to November 1 with no form to submit. The extension buys you time to file, not time to pay. If you owe, you still have to pay by May 1, or you’ll owe penalties and interest.9Virginia Tax. When to File Active-duty military deployed outside the United States get an automatic extension running until 90 days after deployment ends.8Virginia Code Commission. Virginia Code 58.1-341 – Returns of Individuals
Estimated Payments
If you earn income without Virginia withholding (self-employment, investments, rentals), you probably owe quarterly estimated payments.10Virginia Code Commission. Code of Virginia – Article 19. Estimated Tax For 2026, the quarterly due dates for calendar-year filers are:
- May 1, 2026 (first installment, filed with your declaration)
- June 15, 2026
- September 15, 2026
- January 15, 2027
The first payment aligns with Virginia’s May 1 filing date, not the federal April 15. You divide your projected annual liability into four equal installments.10Virginia Code Commission. Code of Virginia – Article 19. Estimated Tax
What Late Filing or Late Payment Costs
Virginia charges 6% per month for filing late and 6% per month for paying late, with a combined cap of 30% of the unpaid tax.11Virginia Tax. Penalties and Interest Only one of those penalties applies in any given month, but the clock runs fast either way.
If you use the six-month extension but fail to pay at least 90% of what you owe by May 1, a separate extension penalty of 2% per month applies to the unpaid balance, up to 12%. The extension penalty and the late payment penalty don’t run simultaneously.
Interest runs on top of penalties at the federal underpayment rate plus 2%, accruing from the original May 1 due date regardless of any extension.11Virginia Tax. Penalties and Interest If you need more time to finish the paperwork, pay as close to the full balance as you can by May 1 anyway. The extension is for forms, not for money.
How to File, Pay, and Track a Refund
Most filers submit through the Virginia Tax website or commercial tax software; electronic filing is faster and cuts down on data-entry errors. Paper returns go to the address in the form instructions, which differs depending on whether you’re enclosing a payment. Before you start, have your Social Security number, W-2s, any 1099s, and your completed federal return in front of you, because the Virginia return begins with your federal AGI and layers state additions, subtractions, deductions, and exemptions on top.
You can pay by electronic bank draft, credit or debit card, or by mailing a check with Form 760-PMT. Write your Social Security number on any check so the payment lands on the right account.12Virginia Department of Taxation. Form 760PMT – Virginia Income Tax Payment Coupon
Refund timing depends on how you filed. In peak season, e-filed returns are typically processed within two weeks; outside peak season, allow up to four. Paper returns can take eight weeks or more, and certified mail adds about three weeks to those estimates.13Virginia Tax. Where’s My Refund The “Where’s My Refund?” tool on the Virginia Tax website shows status once processing begins.