The Virginia income tax has four tax brackets, with a maximum marginal income tax of 5.75% as of 2024. Virginia state income tax returns for the 2023 tax year are due May 1, 2024.
Tax Calculations and Brackets
Virginia Tax Calculator [Federal & State]
The Virginia State Tax calculator is updated to include the latest State tax rates for 2023/2024 tax year. Calculate your total tax due using the tax calculator. Deduct the amount of tax paid to provide an illustration of your 2023/2024 tax refund.
Federal Income Tax Brackets
The federal income tax has seven tax rates in 2024: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. Here are the federal income tax brackets for the 2023 and 2024 tax years.
Standard Deduction and Contribution Limits
The standard deduction for single taxpayers will be $14,600, an increase from $13,850 in 2023. For 2024, the maximum HSA contribution for somebody with self-only coverage under a high deductible health plan is $4,150. The limit for somebody with family coverage under such a plan is $8,300.
Long-term capital gains and qualified dividends face tax rates: 0% tax rate if they fall below $94,050 of taxable income if married filing jointly. 15% tax rate if they fall above the 0% threshold but below $583,750 if married filing jointly.
Impact of Inflation Adjustments
The IRS makes such adjustments annually, but in times of inflation, the increases are more significant and impactful for taxpayers. The tax brackets are also being adjusted for inflation in 2024.
Here are some specific examples of how the changes to the tax code in 2024 could impact your taxes: Single taxpayer with a taxable income of $50,000: In 2023, this taxpayer would pay $7,451 in taxes. In 2024, they would pay $7,771 in taxes.
Standard deductions for single filers will increase to $14,600 compared to $13,850 in 2023. For married couples filing jointly, the standard deduction increases in 2024 to $29,200.
Tax brackets are determined using a formula based on inflationary increases. Continued high inflation in 2023 translated to an increase in tax brackets for 2024 of 5.4%.
Virginia State Income Tax Rates
What is the tax rate in Virginia 2023?
Virginia state income tax rates are 2%, 3%, 5% and 5.75%. Virginia state income tax brackets and income tax rates depend on taxable income and residency status.
Additional Tax Information
Overall sales tax rates in Virginia range from 5.3% to 5.75%. Unemployment tax rates change in 2023. Capital gains face Virginia’s highest income tax rate of 5.75%. The gas tax on diesel is 28.9 cents per gallon.
The deadline to file 2022 Virginia income taxes was May 1, 2023. An automatic extension to November 1 is available. Find Virginia state tax forms and tax brackets by year. File prior year returns on eFile.com.