Virginia

Sales Tax

  • Statewide: 4.3% (plus 1% mandated local sales tax)
  • Counties can levy an additional sales tax of no more than 2.7%
  • Current average sales tax (with local taxes included): 5.63%
  • Common Exceptions at State Level:
    • Prescription and Over-the-Counter Medicine: Exempt
    • Unprepared Foods: None, but mandated local tax of 1% 
    • Prepared Foods: 5%
  • Vehicle Tax: 4.15% or $75, whichever is greater.
  • Gasoline Tax: 57.50 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 64.60 cents/gallon (Includes all state, local, and federal taxes)
     

Personal Income Tax

  • Personal Income Tax Rate Range: Four brackets from 2.0% to 5.75% (on income greater than $17,000)
  • Standard deduction: Single Filing Status: $8,040. Married Filing Jointly: $16,000
  • Personal Exemption Allowance: $930. Dependent Exemption: $930 
  • Itemized Deductions Allowed?: Yes, subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Up to $15,000 may be exempt if income is less than $15,000.* 
  • Military Pay
    • Active Duty Pay: Up to $15,000 may be exempt if income less than $30,000. Some National Guard and reservist pay, up to $3,000, may also be exempt. 
    • Military Retirement Pay: State budget passed in September 2023 exempts the first $20,000 in military retirement income in the 2023 tax year. This number will jump to $30,000 in 2024 and $40,000 in 2025 and beyond. Exempt if Medal of Honor recipient.
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: See "Military Retirement Pay," above.
Income Tax Comments: If born before Jan. 2, 1939, up to $12,000 of income is exempt. If born after Jan. 2, 1939, up to $12,000 is exempt if federal Adjusted Gross Income is less than $62,000 ($87,000 if married filing jointly).

 

Property Tax

  • Local municipalities average .76% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value
  • Relief programs for:
    • 65 and Over: Up to 100% exemption available based on income.
    • Disabled Veterans/Surviving Spouses (also of first responder KIA/DOW): 100% tax-exempt if 100% service-connected disability and property 1 acre or less.
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: None

 

Department of Revenue website: www.tax.virginia.gov

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