State Sales Tax
The Virginia (VA) state sales tax rate is currently 4.3%. Total tax rate can be as high as 7% depending on local municipalities. Tax is imposed on retail sale, lease or rental of tangible personal property in Virginia, or use or consumption of tangible personal property in Virginia. Numerous services are also subject to sales and use tax.
Residency for Tax Purposes
You can be a Virginia resident for tax purposes if:
- You spend over 183 days in Virginia during the tax year.
- You’re a resident of another state but attend college in Virginia.
- You’re a Virginia resident but attend college in another state.
Income Tax Brackets
Virginia has four marginal income tax brackets, ranging from 2% (lowest) to 5.75% (highest). Rates are the same for single filers and couples filing jointly. Each rate only applies to earnings within the bracket.
2023 – 2024 Virginia Income Tax Brackets
- 2% on the first $3,000 of taxable income.
- 3% on taxable income between $3,001 and $5,000.
- 5% on taxable income between $5,001 and $17,000.
- 5.75% on taxable income over $17,000.
Taxation for Self-Employed Individuals
If self-employed in Virginia, income is taxed at the same rates of 2-5.75%. But self-employed also pay federal self-employment tax, Virginia’s equivalent to FICA taxes.
Property and Retirement Income Tax
The statewide median property tax rate is generally below average. Virginia does not tax Social Security benefits. Railroad Retirement benefits are also exempt.