Virginia State Tax Guide

check collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Unlike the Federal Income Tax, Virginia’s state income tax does not provide couples filing jointly with expanded income tax brackets. Virginia has a progressive income tax, with a top marginal rate that is slightly lower than the national average. The average sales tax in the state, combining state and average local rates, is among the lowest in the country. The Commissioner of the Revenue can assist you in preparing state income tax returns, getting necessary forms, and answer questions about state income taxes.

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Virginia passes law to crack down on organized retail theft -.

Posted: Sat, 25 Feb 2023 06:33:55 GMT [source]

For diesel gas, the state excise rate is 28.90 cents per gallon. Capital gains in Virginia are taxed as regular income, which means they will likely face the top rate of 5.75%. Your location will determine whether you owe local and / or state taxes. If resolution services cannot be provided, investigation fees will be refunded.

Income Tax Preparation

All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. Contact Information – Commissioners of the Revenue Contact InformationUse this to figure out where to mail your tax return or what number to call with questions. SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user’s account by an Adviser or provide advice regarding specific investments. First, we calculate your adjusted gross income by taking your total household income and reducing it by certain items such as contributions to your 401. There are three types of residency statuses when it comes to Virginia state income tax.


YourselfBoth you and your spouse can take a Virginia Income Tax Rates For 2021 exemption of up to $930. Many couples filing jointly choose to file under the Spouse Tax Adjustment in which case each person must exempt themselves. Virginia allows an automatic 6-month extension to file your return (Nov. 1 for most people).

Virginia Income Tax Calculator 2022-2023

The state derives its constitutional authority to tax from Article X of the state constitution. AgeIf you are 65 or older, you can claim up to $800 on your income taxes. If filing jointly, each person must file their own age exemption. Virginia 529 account owners who are Virginia taxpayers can really multiply their 529 plan deductions. There is also an unlimited carry forward to future tax years, subject to certain restrictions. If so, you may deduct the entire amount contributed to a Virginia 529 account in one year! Doing so can provide a legacy for your grandchildren, reduce your Virginia income tax, and help you avoid estate taxes.

  • Another 10 U.S states have a flat tax rate—everyone pays the same percentage regardless of how much they earn.
  • Special rules may apply to military members or individuals living abroad.
  • He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets.
  • As a result, they can sell their credits to Virginia residents who want to purchase the credits at a reduced price.

Sales taxes apply generally, while excise taxes apply to specific items like cigarettes or fuel. These are key revenue sources in Virginia, but because households with low and moderate incomes tend to spend more of their income on basics like food, gas, and clothing, these taxes tend to be regressive. Meanwhile households with higher incomes can save more of their income or spend on untaxed services, and so pay a lower share of their income on these taxes. Sales and excise taxes in particular exacerbate existing racial income inequality for Black and Latino taxpayers in Virginia. A modernized sales tax that applies to services and digital products would cover a broader, more balanced mix of consumer spending.

Virginia Tax Information

Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Virginia tax refund, you can visit the Virginia Income Tax Refund page. provides easy access to five of the most commonly used Virginia income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Virginia tax forms library or the ‘s tax forms page. Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.

If you’re going to take advantage of the extension, you will still need to pay your estimated tax bill by the original deadline in order to avoid late-filing penalties or interest. Other states have a top tax rate, but not all states have the same number of income brackets leading up to the top rate. For example, Hawaii has a top tax rate of 11% and 12 income brackets, while Iowa has a top tax rate of 8.53% and nine income brackets. Of Danville will total 6.3%, comprised of the 4.3% state tax, the 1% local option tax, and the 1% additional local tax. In fiscal year 2015, Virginia’s business tax climate was ranked 26th in the nation.

Virginia State Tax Guide

Your local income tax is based on where you live – not where you work, or where your tax preparer is located. Be sure to use the correct rate for the local jurisdiction in which you live.

Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Mark has over 20 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors. If the due date falls on a Saturday, Sunday, or holiday, you have until the next business day to file with no penalty. Virginia can further improve the EITC and could also enact a refundable CTC to boost family incomes even further and help families better afford basics like child care, transportation, and food. The federal Earned Income Tax Credit and Child Tax Credit are proven tools to boost family incomes. When we invest together in the foundations that benefit all of us, our communities thrive.

Descriptions like the note attached to a service payment on a peer-to-peer app, for example, do not determine the taxability of that income. Please also note that income from gig work is generally taxable regardless of whether you received a Form 1099-K from a TPSO. For taxable years beginning on and after January 1, 2021, but before January 1, 2026, the Virginia General Assembly has established a new elective pass-through entity tax. The elective income tax and corresponding refundable credit allow the qualifying PTE to shift the income tax burden from the PTE owners to the PTE itself. In addition, taxpayers age 65 and older can claim a deduction of up to $12,000.

  • The state income tax rates range from 2% to 5.75%, and the general sales tax rate is 5.3% (which is 4.3% state tax and 1.% local tax).
  • Accordingly, the Virginia rates for the fourth quarter of 2022 will be 8% for tax underpayments and 8% for tax overpayments .
  • Even so, you don’t have to earn much to pay Virginia’s highest tax rate.
  • The average effective property tax rate in Virginia is 0.75%, 21st-lowest in the country.

Virginia’s maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Virginia’s %. You can learn more about how the Virginia income tax compares to other states’ income taxes by visiting our map of income taxes by state. Virginia has four marginal tax brackets, ranging from 2% to 5.75% .

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