Taxes in Virginia: State Tax Guide 2026
Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.
Taxes in Virginia: State Tax Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
Virginia combines a relatively moderate income tax with one of the highest concentrations of federal workers and military personnel in the country. The Commonwealth’s four-bracket income tax tops out at 5.75%, and its overall tax burden falls near the national middle. Northern Virginia’s proximity to Washington, D.C., and the state’s growing tech corridor make understanding local taxes essential for residents and newcomers alike.
Virginia Income Tax Rates (2026)
Virginia uses a progressive income tax with four brackets. Rates apply to all filers:
| Tax Rate | Taxable Income Range |
|---|---|
| 2.00% | $0 – ~$3,000 |
| 3.00% | ~$3,001 – ~$5,000 |
| 5.00% | ~$5,001 – ~$17,000 |
| 5.75% | Over ~$17,000 |
The top rate kicks in at a relatively low income threshold, meaning most working Virginians pay the top marginal rate on the bulk of their earnings.
Virginia’s standard deduction is ~$8,000 for single filers and ~$16,000 for married filing jointly. Personal exemptions of ~$930 per taxpayer and dependent also apply.
Sales Tax
| Component | Rate |
|---|---|
| State base rate | 4.30% |
| Local add-on (most areas) | 1.00% |
| Standard combined rate | 5.30% |
| Northern Virginia / Hampton Roads | 6.00% (additional 0.70% for transit) |
Virginia’s sales tax is below the national average of ~6.6% combined, though regional surcharges in Northern Virginia and Hampton Roads push rates higher.
Exempt from sales tax: Most groceries (taxed at a reduced 1% state rate, with the local 1% still applying for ~2.50% total in most areas), prescription medications, and certain medical supplies.
Property Tax
| Metric | Amount |
|---|---|
| Average effective rate | ~0.82% |
| National average | 0.99% |
Property taxes in Virginia are levied by cities and counties independently. Rates vary significantly: rural counties may charge ~$0.50 per $100 of assessed value, while Fairfax County charges around ~$1.11 per $100. Homes are reassessed every one to four years depending on locality.
Example: A home assessed at $450,000 in Fairfax County pays approximately ~$5,000 per year in property taxes. The same home in a rural county at $0.55 per $100 pays approximately ~$2,475.
Other Taxes
- Estate and inheritance tax: Virginia does not impose a state estate tax or inheritance tax.
- Capital gains: Taxed as ordinary income at the standard income tax rates (up to 5.75%).
- Car tax (personal property tax): Virginia is one of few states that taxes the value of vehicles annually. Rates vary by locality; relief programs offset part of the tax on the first ~$20,000 of assessed value.
- Fuel tax: ~$0.302 per gallon for gasoline, with regional add-ons in Northern Virginia and Hampton Roads.
- Cigarette tax: ~$0.60 per pack, one of the lowest in the nation.
- Local income taxes: No local income taxes are imposed in Virginia.
Tax Breaks and Credits
- Age deduction: Taxpayers 65+ may deduct up to ~$12,000 of income from any source, subject to income limits. The deduction is being expanded over several years.
- Land preservation credit: Up to 40% of the value of donated conservation easements, capped at ~$20,000 per year with a 13-year carryforward.
- Virginia Earned Income Tax Credit: ~20% of the federal EITC amount, refundable.
- Low-income tax credit: A nonrefundable credit for filers with Virginia adjusted gross income below ~$12,000 (single) or ~$23,000 (married).
- Military benefits: Active-duty pay is subject to Virginia tax, but the age deduction and federal exclusions for combat pay reduce the effective burden. Virginia does not tax military retirement pay up to ~$40,000 (phasing in through 2026).
- 529 plan deduction: Up to ~$4,000 per account per year, with unlimited carryforward.
Key Takeaways
- Virginia’s top income tax rate of 5.75% applies to most working residents due to the low ~$17,000 threshold
- The combined sales tax rate (5.30%–6.00%) is below the national average
- Property taxes vary widely by locality, with Northern Virginia rates roughly double those in rural areas
- The annual car tax on vehicle value is a distinctive cost that catches newcomers off guard
- No state estate or inheritance tax applies, and military retirement pay exclusions are expanding
Next Steps
- Compare Virginia to other states at State Income Tax Comparison: All 50 States Ranked
- Understand your federal obligation with the Federal Income Tax Guide 2026
- Make sure you claim everything you can — Tax Deductions You’re Probably Missing
- Ready to file? See How to File Your Taxes Step by Step
Tax information is for educational purposes only. Consult a licensed tax professional.