Overview of Virginia Taxes
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. Virginia’s property taxes are also below the national average.
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Your Income Taxes Breakdown
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* These are the taxes owed for the 2023 - 2024 filing season.
Your 2023 Federal Income Tax Comparison
- Your marginal federal income tax rate
- Your effective federal income tax rate
- Your federal income taxes
Total Estimated 2023 Tax BurdenIncome Tax $ Sales Tax $ Fuel Tax $ Property Tax$ Total Estimated Tax Burden $ Percent of income to taxes = % | $ |
- About This Answer
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
- First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
- Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
- Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
- Your location will determine whether you owe local and / or state taxes.
- Last Updated: January 1, 2024
When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.
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Taxes in Virginia
Virginia State Tax Quick Facts
- Income tax: 2.00% - 5.75%
- Sales tax: 4.30% - 7.00%
- Property tax: 0.82% average effective rate
- Gas tax: 16 cents per gallon of regular gasoline, 20 cents per gallon of diesel
The state of Virginia has a progressive income tax, with rates ranging from 2% to a top rate of 5.75%. Of the states with a personal income tax, that top rate is slightly lower than average. The Commonwealth’s sales tax ranks near the bottom of the U.S. too. In fact, when taking into account both state and local rates, Virginia’s average of 5.75% is among the lowest in the country. Property and fuel taxes in the state are likewise lower than their respective national averages.
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Virginia Income Taxes
There are four tax brackets for filers in Virginia. While low earners pay lower marginal rates, the top bracket begins at just $17,000 in taxable income. This means most taxpayers in Virginia will pay the top rate of 5.75% on at least part of their income. The table below shows the tax brackets for Virginia filers.
Rates apply to Virginia taxable income, which is based on federal adjusted gross income (AGI). Federal deductions will generally match your Virginia deductions (with the exception of the deduction for state income taxes).
In Virginia, you can only claim itemized deductions if you did so on your federal return. Conversely, if you did claim itemized deductions federally, you must itemize your deductions on your Virginia return. That means you cannot claim the Virginia standard deduction of $4,500 ($9,000 for joint filers), even if your itemized deductions are less than that standard deduction.
Additionally, there are several categories of income that are taxable at the federal level, but may be subtracted from your taxable income in Virginia. Among the types of income you can subtract from your AGI to calculate taxable income are disability income, Virginia lottery prizes, Virginia college savings plan distributions and Virginia National Guard income. On the other hand, certain types of income, most notably capital gains, are taxed as regular income and must be included in your state return.
Virginia Sales Tax
The base, statewide sales tax rate of 4.3% in Virginia is combined with a statewide local rate of up to 2.7%. In addition to that 5.3% rate, localities in the Northern Virginia, Central Virginia and Hampton Roads regions collect a 0.70% sales tax, bringing the total in these areas to 6%. By contrast, cities in Halifax County collect a 1% sales tax, bringing the total there to 6.3%. Communities in the Historic Triangle collect a 1.7% tax, which raises the sales taxes here even further to 7%.
The table below shows the sales tax rates for the counties of Virginia. Additionally, many cities are “independent cities,” which means they are not in any county.
Virginia has a reduced 2.5% tax rate for alcoholic beverages, tobacco, prepared food, seeds and plants grown for food, as well as personal hygiene products that include diapers, bed sheets and sanitary products. Most types of medicine, including nonprescription drugs, are exempt from sales tax in Virginia.
There is one three-day sales tax holiday in Virginia, which takes places during early August. During the holiday, three different types of products, up to a certain price, may be purchased free of sales taxes:
- Hurricane preparedness equipment (up to $60 per item), portable generators (up to $1,000 per item), gas-powered chainsaws (up to $350 per item) and chainsaw accessories (up to $60 per item)
- Clothing and footwear (up to $100 per item) and school supplies (up to $20 per item)
- Energy Star or WaterSense products (up to $2,500 per item)
Virginia Property Tax
The average effective property tax rate in Virginia is 0.82. However, since property taxes in Virginia are assessed and collected at the local level by county and city governments, that rate varies depending on location.
If you’re looking to refinance your home or purchase a new one, take a look at our Virginia mortgage rates guide, where you’ll find information on getting a mortgage and mortgage rates in each county of Virginia.
Virginia Estate Tax
Virginia’s estate tax was repealed on July 1, 2007. Estates of decedents whose death occurred after that date are not required to file an estate tax return.
Virginia Capital Gains Tax
Capital gains (from the sale of a home, for example) in Virginia are taxed as regular income, which means they will likely face the top rate of 5.75%.
Virginia Gas Tax
The state excise tax on regular gas in Virginia is 16 cents per gallon, which is the 24th-lowest in the nation. For diesel gas, the state excise rate is 20 cents per gallon.
- Eight U.S. Presidents were born in Virginia, more than any other state.
- The Virginia General Assembly, which has been in existence since 1619, is the oldest law-making body in the Americas.
- The largest city in Virginia is Virginia Beach, with about 445,000 residents.