Virginia tax guide
Virginia maintains a competitive, business-friendly tax environment characterized by a four-tier progressive tax system. By keeping the top marginal rate at 5.75%, the state balances revenue needs with the goal of attracting a burgeoning technology sector. Most taxpayers in Virginia will find that their effective tax rate is lower than their marginal tax rate due to the progressive bracket structure.
Key tax highlights
Payroll
- Virginia state income tax rates range from 2.0% to 5.75% based on taxable income levels.
- The 5.75% top marginal rate applies to individuals with taxable income over $17,000.
- Employers are required to withhold Virginia state income tax from employee wages based on the state's official withholding tables.
Local taxes
- Virginia allows cities and counties to impose a local income tax, though historically, localities primarily rely on property and sales taxes rather than local income taxes.
Deductions
- Virginia offers a standard deduction that aligns closely with federal levels, helping to lower the taxable income baseline for many residents.
- Taxpayers may choose between the state standard deduction or itemizing deductions if their specific expenses exceed the state allowance.
Salary examples
Pre-computed take-home estimates at common salary levels. For example, a $75,000 salary in Virginia yields about $57,537 after all deductions (76.7% take-home rate). Use the calculator above with your actual salary to see your specific estimate.
| Salary | Federal | State | FICA | Take-Home | Rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $2,617 | $3,825 | $39,738 | 79.5% |
| $75,000 | $7,670 | $4,055 | $5,738 | $57,537 | 76.7% |
| $100,000 | $13,170 | $5,493 | $7,650 | $73,687 | 73.7% |
| $150,000 | $24,734 | $8,368 | $11,475 | $105,424 | 70.3% |
Neighboring states
How Virginia compares with border states on income tax. At a $75,000 salary, a Virginia worker pays $4,055 in state tax annually.
| State | Tax type | Top rate |
|---|---|---|
| Tennessee | no tax | No state income tax |
| North Carolina | flat tax | 4.75% |
| Kentucky | flat tax | 4.00% |
| Maryland | progressive | 6.50% |
| West Virginia | progressive | 4.82% |
| District of Columbia | high tax | 10.75% |
Tax tips for Virginia
- Review your W-4 form annually to ensure your employer is withholding the correct amount for Virginia state taxes, especially if your income crosses into a higher tax bracket.
- Check if you qualify for the Virginia personal exemption or additional credits for seniors or those with disabilities to further reduce your state tax liability.
- Consider contributing to a Virginia 529 plan, which offers state income tax advantages for contributions made toward qualified education expenses.
Did you know?
- •Virginia's top tax bracket of 5.75% kicks in at a relatively low threshold of $17,000, meaning many full-time workers reach the top rate quickly.
- •The state is widely regarded as a hub for technology and defense, which influences the state's fiscal policy and emphasis on maintaining a stable tax climate.
Filing guidance
Virginia residents must file their annual individual income tax return, Form 760, by the state's filing deadline, typically May 1st. You should gather all W-2s, 1099s, and documentation for potential itemized deductions before beginning your filing. Ensure that you have accounted for any local tax credits or state-specific subtractions, such as the subtraction for certain military retirement income, to ensure your tax liability is calculated accurately under the current progressive brackets.
Relocation context
Comparing Virginia with nearby states can reveal whether paycheck differences are driven by state tax, local tax, or payroll deductions.