How much does virginia take out for taxes

The Virginia Department of Taxation uses a percentage-based method that is based on the number of months you are in the state. This method, compared to a calculation based on income that other states use, means that you can deduct more than you would if you lived somewhere else. The table below gives examples of how much each situation would reduce your tax liability.

If you’re a Virginia resident, you’ve probably been wondering how much tax the government takes out of your paycheck. It’s impossible to know exactly how much, but based on tax brackets and median income, we can make a pretty accurate estimate.

Virginia taxes are based on a graduated system. You will pay different percentages of your income depending on how much you earn.

The first $17,000 you make is taxed at 3.2%. For every dollar over $17,000 that you earn, you’ll pay 5.75%.

Virginia taxes all income, including wages and pensions. Virginia’s personal income tax rates vary from 2.00% to 6.00%, depending on the filer’s tax bracket. The state also imposes a sales and use tax of 4.3%.

Virginia Income Tax Calculator

If you make $70,000 a year living in the region of Virginia, USA, you will be taxed $12,100. Your average tax rate is 11.98% and your marginal tax rate is 22%. This marginal tax rate means that your immediate additional income will be taxed at this rate.

After-Tax Income

$57,900

82.71%17.29%020304050607080After-Tax IncomeTotal Income Tax

Federal taxes

Marginal tax rate22%

Effective tax rate 11.98%

Federal income tax$8,387

State taxes

Marginal tax rate5.75%

Effective tax rate 5.30%

Virginia state tax$3,713

Gross income$70,000

Total income tax-$12,100

After-Tax Income$57,900

What You Need To Know About Virginia State Taxes

The state of Virginia requires you to pay taxes if you’re a resident or nonresident that receives income from a Virginia source. 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). Some regions may assess additional sales taxes.

Virginia state offers tax deductions and credits to reduce your tax liability, including a standard deduction, itemized deduction, dependent care credit deductions, credits for taxes paid to other states and more.

Virginia Income Tax Brackets and Rates (For All Filing Statuses)

If your Virginia taxable income is over:But not over:Your tax is:
$0$3,0002% of your income
$3,000$5,0003% of your income amount over $3,000 + $60
$5,000$17,0005% of your income amount over $5,000 + $120
$17,000And Over5.75% of your income amount over $17,000 + $720

Income Tax Deductions for Virginia

Standard Deduction

The state of Virginia offers a standard and itemized deduction for taxpayers. The 2021 standard deduction allows taxpayers to reduce their taxable income by $4,500 for single filers and $9,000 for married filing jointly filers. If you claim the standard deduction on your federal tax return you must also claim it on your Virginia return.

Itemized Deductions

A taxpayer that itemizes deductions on their federal tax return must also itemize them on their Virginia return. You can claim most of the same itemized federal deductions on your Virginia return.

Child and Dependent Care Expenses

Those who are eligible to claim a credit for child and dependent care on their federal return can also claim it on their Virginia state tax return. Up to $3,000 can be deducted for one dependent, and up to $6,000 for two dependents.

Foster Care Costs

Foster parents in Virginia can deduct $1,000 for each child residing in their home under permanent foster care.

Bone Marrow Screening Fees

The fee paid for an initial screening to be a bone marrow donor can be deducted, as long as you were not reimbursed and you didn’t claim a deduction for the fee on your federal return.

Virginia College Savings Plan Prepaid Tuition Contract Payments and College Savings Trust Account Contributions

Individuals under age 70 on or before Dec. 31 of the taxable year can enter $4,000 or the amount they contributed—whichever is less—to each Virginia529 account during the taxable year. Those who contributed more than $4,000 can carry forward any remaining amount until the contribution is fully deducted.

Those age 70 or older on Dec. 31 can deduct the entire amount contributed during the taxable year.

Continuing Teacher Education

Licensed primary or secondary teachers can deduct up to 20% of reimbursed tuition costs for continuing teacher education courses, but only if the expenses weren’t deducted from their federally adjusted gross income.

Long-Term Health Care Premiums

Premiums paid for long-term care insurance can be deducted on your Virginia state taxes only if they weren’t claimed as a deduction on your federal return.

Virginia Public School Construction Grants Program and Fund Deduction

The total amount contributed to this program can be deducted on your Virginia state tax return, granted it’s not claimed on your federal income tax return.

Sales Tax Paid on Energy Efficient Equipment or Appliances

Certain energy efficient equipment or appliances (such as a tankless water heater) can have 20% of their cost deducted, up to $500 total; for married couples filing jointly, up to $1,000 can be deducted.

Organ and Tissue Donor Expenses

Those who have unreimbursed expenses for organ and tissue donation can up to $5,000 of the costs; for married couples filing jointly, the deduction is limited to $10,000. This can only be deducted on your Virginia state return if it isn’t deducted on your federal return.

Prepaid Funeral, Medical and Dental Insurance Premiums

People aged 66 or older can deduct their prepaid funeral insurance costs or medical and dental insurance premiums for themself or their dependents. They must have an earned income of at least $20,000 for the year and a federal adjusted income $30,000 or less.

ABLEnow Account Contributions

Up to $2,000 of ABLEnow account contributions can be deducted on Virginia state taxes per year. Any amount over can be carried forward and deducted in future years. Those age 70 or older can deduct the full amount contributed.

Virginia State Income Tax Credits

Credit for Taxes Paid to Another State

Some states require nonresidents that made income from its sources pay tax to that state. Virginia allows residents who paid tax in another state to claim it as a credit to avoid double taxation. Earned income, business income and gain from the sale of any capital asset not used in a trade or business qualify for the credit.

Note: Arizona, California and Oregon have their own credits and should be claimed on their nonresident income tax returns.

Low-income Individuals Credit

Families in Virginia living below the federal poverty guidelines are eligible for the low-income individuals credit. The maximum credit is $300 for each person and dependent in your household. Unlike the federal Earned Income Tax Credit, Virginia’s low-income individuals credit is nonrefundable, which means if the credit exceeds your tax liability, it won’t trigger a refund.

Do I Have to Pay Income Tax in Virginia?

You’re required to file a Virginia tax return if you receive income from Virginia, have income above a certain income threshold and fall into one of the following categories:

  • Resident
  • Part-Year Resident
  • Nonresident

Virginia determines residency in the following ways:

  • Resident: Someone who lives in Virginia, or maintains a place of abode in Virginia (defined by the state of Virginia as a physical place where you live and isn’t necessarily your primary home), for more than 183 days per year.
  • Part-year resident: A person who moved into Virginia during the year with the intent of becoming a resident, or moved out of Virginia to become a resident of another state
  • Nonresident: Someone who isn’t a resident or part-year resident but receives taxable income from Virginia sources.

Sales Tax and Sales Tax Rates

Generally, Virginia charges a state sales tax of 5.3%. Several areas have an additional regional or local tax that bumps the tax rate up to 6% or 7%. There is a reduced rate of 2.5% for food for home consumption and certain essential personal hygiene items.

Real Estate, Personal Property and Capital Gain Tax Rates

Real Estate Tax

Property tax rates in Virginia vary by location.

Personal Property Tax

Personal property tax rates in Virginia vary by location. Personal property can include motor vehicles, boats, utility trailers, mobile homes and more. Refer to your county’s website to find your tax rate.

Capital Gains Taxes

Virginia taxes capital gains at the same income tax rate, up to 5.75%.

Inheritance and Estate Tax and Inheritance and Estate Tax Exemption

Virginia doesn’t have an inheritance or estate tax.

How Your Virginia Paycheck Works

As in all other states, Virginia employers must withhold FICA taxes from their employee’s paychecks. FICA taxes consist of Social Security and Medicare taxes. Social Security withholding is 6.2% of your income, while Medicare withholding is 1.45% of your income each pay period. Your employer will match these percentages so that the total FICA contribution is double what you pay. If you’re a single filer who earns a salary in excess of $200,000, wages over that amount are subject to a 0.9% Medicare surtax. For joint filers, this surtax applies to income above $250,000, while married people filing separately will see it added for any income above $125,000.

In some instances, you might assume the responsibility of paying 100% of your FICA taxes instead of the usual 50%. This is the case with self-employed taxpayers. Since these types of workers do not have the luxury of having an employer to contribute half of their FICA taxes, they must cover all of these taxes alone. However, there is a deduction available during tax season so that self-employed workers can recoup some of the “employer” portion of their FICA taxes.

Virginia employers also withhold money for federal income taxes. How much you pay will depend on various factors, including your salary, marital status and whether you have any dependents. Remember that whenever you start new employment or you undergo major life changes, like getting married or having a child, you will need to fill out a new Form W-4.

The IRS has recently made revisions to the Form W-4. The new version no longer lets you claim allowances, as it instead features a five-step process that asks you to enter annual dollar amounts for any additional income or jobs, as well as things like non-wage income, income tax credits, itemized and other deductions and total annual taxable wages.

Keep in mind that your paycheck frequency also plays a role in your cash flow each month. More frequent but smaller paychecks may mean you budget a bit differently than if you get fewer, larger paychecks.

Taxes in Virginia

Virginia State Tax Quick Facts

  • Income tax: 2.00% – 5.75%
  • Sales tax: 5.30% – 6.00%
  • Property tax: 0.75% average effective rate
  • Gas tax: 28 cents per gallon of regular gasoline, 28 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.

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.

Income Tax Brackets

Virginia Taxable IncomeRate
$0 – $3,0002.00%
$3,000 – $5,0003.00%
$5,000 – $17,0005.00%
$17,000+5.75%

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 1%, meaning the effective floor for sales taxes in Virginia is 5.3%. 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.

Sales Tax Rates(Updated January 2022)

County NameState RateTax Rate
Accomack County4.30%6.30%
Albemarle County4.30%5.30%
Alleghany County4.30%5.30%
Amelia County4.30%5.30%
Amherst County4.30%5.30%
Appomattox County4.30%6.30%
Arlington County4.30%6.00%
Augusta County4.30%5.30%
Bath County4.30%5.30%
Bedford County4.30%5.30%
Bland County4.30%5.30%
Botetourt County4.30%5.30%
Brunswick County4.30%5.30%
Buchanan County4.30%5.30%
Buckingham County4.30%5.30%
Campbell County4.30%6.30%
Caroline County4.30%6.00%
Carroll County4.30%6.30%
Charlotte County4.30%6.30%
Chesterfield County4.30%6.00%
Clarke County4.30%6.00%
Craig County4.30%5.30%
Culpeper County4.30%5.30%
Cumberland County4.30%6.00%
Dickenson County4.30%5.30%
Dinwiddie County4.30%5.30%
Essex County4.30%5.30%
Fairfax County4.30%6.00%
Fauquier County4.30%6.00%
Floyd County4.30%6.30%
Fluvanna County4.30%6.00%
Franklin County4.30%6.30%
Frederick County4.30%5.30%
Giles County4.30%5.30%
Gloucester County4.30%6.30%
Goochland County4.30%6.00%
Grayson County4.30%5.30%
Greene County4.30%5.30%
Greensville County4.30%5.30%
Halifax County4.30%6.30%
Hanover County4.30%6.00%
Henrico County4.30%6.00%
Henry County4.30%6.30%
Highland County4.30%5.30%
Isle Of Wight County4.30%6.00%
King And Queen County4.30%5.30%
King George County4.30%5.30%
King William County4.30%6.00%
Lancaster County4.30%5.30%
Lee County4.30%5.30%
Loudoun County4.30%6.00%
Louisa County4.30%6.00%
Lunenburg County4.30%5.30%
Madison County4.30%5.30%
Mathews County4.30%6.30%
Mcdowell County4.30%5.30%
Mecklenburg County4.30%6.30%
Middlesex County4.30%5.30%
Montgomery County4.30%5.30%
Nelson County4.30%5.30%
New Kent County4.30%7.00%
Northampton County4.30%6.30%
Northumberland County4.30%5.30%
Nottoway County4.30%5.30%
Orange County4.30%5.30%
Page County4.30%5.30%
Patrick County4.30%6.30%
Pittsylvania County4.30%6.30%
Powhatan County4.30%6.00%
Prince Edward County4.30%5.30%
Prince George County4.30%5.30%
Prince William County4.30%6.00%
Pulaski County4.30%5.30%
Rappahannock County4.30%5.30%
Richmond County4.30%5.30%
Roanoke County4.30%5.30%
Rockbridge County4.30%5.30%
Rockingham County4.30%5.30%
Russell County4.30%5.30%
Scott County4.30%5.30%
Shenandoah County4.30%5.30%
Smyth County4.30%5.30%
Southampton County4.30%6.00%
Spotsylvania County4.30%5.30%
Stafford County4.30%5.30%
Surry County4.30%6.00%
Sussex County4.30%6.00%
Tazewell County4.30%5.30%
Warren County4.30%5.30%
Washington County4.30%5.30%
Westmoreland County4.30%5.30%
Wise County4.30%5.30%
Wythe County4.30%5.30%
York County4.30%7.00%

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 0.75%, 21st-lowest in the country. That means that, on average, Virginians pay 0.75% of their home value in property taxes each year.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 28 cents per gallon, which is the 24th-lowest in the nation. For diesel gas, the state excise rate is 28.90 cents per gallon. 

Photo credit: flickr
  • 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.

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