Taxes in Virginia come in four main forms: a graduated individual income tax that tops out at 5.75%, a 5.3% general sales tax (6% in three regions, 1% on groceries), locally set real estate and vehicle taxes, and a 6% corporate income tax. Virginia has no estate or inheritance tax. Individual income tax returns are due May 1, not April 15.
Individual Income Tax Rates
Virginia uses four brackets, applied to your Virginia taxable income:1Virginia Code Commission. Code of Virginia – Article 2. Individual Income Tax
- 2% on the first $3,000
- 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
The top bracket starts at $17,000, so most working Virginians pay 5.75% on the bulk of their earnings.
Who Has to File
If you lived in Virginia or kept a home here for more than 183 days during the year, you are a resident and owe tax on all income regardless of where you earned it. Part-year residents file a separate return for the months they lived in the state. Nonresidents owe Virginia tax only on income sourced from inside the state, such as wages from a Virginia job or rent from Virginia property.2Virginia Department of Taxation. Residency Status
Deductions and Exemptions That Lower the Bill
The Virginia standard deduction is $8,750 for single filers and $17,500 for married couples filing jointly. If you took the standard deduction on your federal return, you must take it on your Virginia return too.3Virginia Department of Taxation. Deductions
You can also claim a $930 personal exemption for yourself, your spouse, and each dependent. These come off your income before the brackets are applied.3Virginia Department of Taxation. Deductions
Social Security and Retirement Income
Virginia does not tax Social Security benefits. Whatever portion the federal government taxes, you subtract on your Virginia return, which zeroes it out at the state level. The same exclusion applies to Tier 1 Railroad Retirement benefits.4Virginia Department of Taxation. Virginia Taxes and Your Retirement
An age deduction of up to $12,000 is available to Virginians born on or before January 1, 1939. Those born after that date but on or before January 1, 1960, may qualify as well, depending on income. You cannot claim the age deduction and the disability income subtraction in the same year.5Virginia Department of Taxation. Subtractions
Sales and Use Tax
The general sales tax rate across most of Virginia is 5.3%, made up of a 4.3% state tax and a 1% local add-on.6Virginia Department of Taxation. Retail Sales and Use Tax
Three regions pay 6% because of additional transportation taxes: Northern Virginia (including Fairfax County, Loudoun, Arlington, and Prince William), Hampton Roads (Norfolk, Virginia Beach, Newport News, and nearby localities), and Central Virginia (Henrico, Chesterfield, Richmond City, and neighboring counties). The applicable rate depends on where the goods are delivered or the transaction occurs.6Virginia Department of Taxation. Retail Sales and Use Tax
Groceries Are Taxed at 1%
Food for home consumption and certain essential personal hygiene products carry a reduced 1% rate throughout the state. The reduced rate applies everywhere, so groceries in Arlington are taxed the same as groceries in a rural county.7Virginia Department of Taxation. Grocery Tax
What’s Exempt
Prescription drugs, eyeglasses, hearing aids, and durable medical equipment such as wheelchairs are fully exempt. So are items bought for resale, goods shipped out of state, and purchases by federal and state government agencies.8Virginia Department of Taxation. Sales Tax Exemptions
Nonprofits under IRC sections 501(c)(3), 501(c)(4), and 501(c)(19) can buy items tax-free after they obtain an exemption certificate. Agricultural supplies used in commercial farming, industrial raw materials destined for manufactured products, and certified pollution control equipment are also exempt.8Virginia Department of Taxation. Sales Tax Exemptions
Real Estate and Vehicle Property Tax
Virginia’s property taxes are set and collected entirely at the local level. There is no state real estate tax. Each county and independent city sets a rate expressed per $100 of assessed value, and those rates vary widely. In 2024, the lowest county rates were around $0.33 per $100 and the highest city rate was $1.43 per $100 in Manassas Park.9Virginia Department of Taxation. Tax Rates for County, City, Town, and Districts TY 2024
Your bill equals the assessed value divided by 100, multiplied by the local rate. A home assessed at $350,000 in a locality charging $1.00 per $100 generates an annual real estate tax of $3,500. Assessment challenges typically go through a local board of equalization.
Vehicles Are Taxed Every Year
Localities also tax personal property, most commonly cars. Your county or city assesses the vehicle’s value using recognized pricing guides and applies the local personal property tax rate. Newcomers from states that don’t tax vehicles this way often don’t see it coming.
The Personal Property Tax Relief Act softens the hit. The state reimburses localities for a share of the tax on the first $20,000 of a qualifying vehicle’s assessed value, and that relief appears as a credit on your bill. Vehicles assessed at $1,000 or less receive 100% relief, so no tax is owed. The vehicle must be used for non-business purposes to qualify.10Virginia Code Commission. Code of Virginia – Personal Property Tax Relief
Relief for Veterans, Seniors, and People With Disabilities
Veterans rated by the U.S. Department of Veterans Affairs as having a 100% service-connected, permanent, and total disability are exempt from real estate tax on their principal residence and up to one acre of land. If the veteran died on or after January 1, 2011, the surviving spouse keeps the exemption as long as they do not remarry.11Virginia Code Commission. Code of Virginia Title 58.1 Chapter 32 Section 58.1-3219.5 – Exemption From Taxes on Property for Disabled Veterans
State law also authorizes every locality to exempt or defer real estate taxes for residents age 65 and older, or those who are permanently and totally disabled. Each locality designs its own program with its own income and asset limits, so what you qualify for depends on where you live. Your local commissioner of the revenue or treasurer’s office can confirm the thresholds.12Virginia Code Commission. Code of Virginia Title 58.1 Chapter 32 Section 58.1-3210 – Exemption or Deferral of Taxes on Property of Certain Elderly Individuals and Individuals With Disabilities
Business Taxes
Virginia charges a flat 6% corporate income tax on the Virginia taxable income of C corporations doing business in the state.13Virginia Department of Taxation. Corporation Income Tax
Pass-through entities such as S corporations, partnerships, and LLCs taxed as partnerships can elect to pay Virginia income tax at the entity level instead of passing it through to owners. The election is filed on Form 502PTET and is designed to help owners work around the federal $10,000 cap on state and local tax deductions. Electing entities must make quarterly estimated payments and file electronically by April 15 for calendar-year filers, with an automatic six-month filing extension (not a payment extension).14Virginia Department of Taxation. Pass-Through Entities
Many localities also charge a Business, Professional, and Occupational License (BPOL) tax on gross receipts. Rates typically run from $0.03 to $0.58 per $100 of gross receipts, depending on the locality and the type of business. Not every locality imposes it, so check with your local commissioner of the revenue.
Out-of-state retailers and marketplace facilitators owe Virginia sales tax once they exceed $100,000 in gross revenue from Virginia sales or complete 200 or more transactions with Virginia customers in a calendar year.15Virginia Department of Taxation. Remote Sellers, Marketplace Facilitators, and Economic Nexus
No Estate or Inheritance Tax
Virginia does not impose an estate tax or an inheritance tax. The state’s old estate tax was tied to the federal credit for state death taxes, and when that credit was eliminated at the federal level, Virginia’s estate tax was effectively repealed as of July 1, 2007. Certain rare remainder interests may still be subject to an inheritance tax, but for the vast majority of estates, no state-level death tax applies.16Virginia Department of Taxation. Estate and Inheritance Taxes
Filing Deadlines, Extensions, and Penalties
The Virginia individual income tax deadline is May 1, not April 15. If May 1 lands on a weekend or holiday, the deadline moves to the next business day. Fiscal-year filers owe their returns by the 15th day of the fourth month after the close of their fiscal year.17Virginia Tax. When to File
Virginia grants an automatic six-month filing extension, pushing the deadline to November 1 for most filers. You don’t have to apply. The extension only covers paperwork though. Any tax owed must still be paid by May 1 to avoid penalties and interest.17Virginia Tax. When to File
Missing the deadline gets expensive quickly. Failing to file by the due date (or the extended due date) triggers a penalty of 6% of the unpaid tax per month, capped at 30%. Filing during the extension period but underpaying by more than 10% brings a separate 2% monthly penalty on the balance. Interest on underpayments currently runs 8% annually.18Virginia Tax. Rulings of the Tax Commissioner Document Number 24-7419Virginia Tax. Virginia Interest Rates Change for the 2nd Quarter of 2026
How to File and Pay
Residents report income on Form 760. Virginia starts with federal adjusted gross income, so finish your federal return first. Have your W-2s, any 1099s, and Social Security numbers for yourself, your spouse, and dependents ready.2Virginia Department of Taxation. Residency Status
Virginia Tax eForms lets you complete and submit the return online without creating an account, and approved third-party tax software also supports electronic filing.20Virginia Tax. eForms FAQs
If you file on paper, mail the return to the address in the instruction booklet. Pay by check or money order made out to the Virginia Department of Taxation, with your Social Security number and tax year on the payment, and send it with the 760-PMT voucher.21Virginia Department of Taxation. Individual Income Tax Payment Options
Once the return is processed, you can check refund status through the Virginia Tax online portal. Keep copies of everything you submitted and your confirmation number in case questions come up later.