Virginia Tax

Virginia State Tax

Virginia Income Tax

Virginia is one of the many states that impose state taxes on its residents. It levies different taxes on income, sales, properties, and other commercial and economic transactions. Knowing about Virginia tax laws will help you prepare better when the time for tax filing comes.

Virginia Income Tax

Individuals who earn sources form Virginia are required to file their income tax return to the state. Virginia personal income tax rates are spread across 4 brackets. Virginia incomes are taxed as follows: 2% for incomes up to $3000; 3% for incomes up to $5000; 5% for incomes up to $17000; and 5.75% for incomes $17,001 and above. There are no expanded brackets for joint filers in Virginia.

Corporations located in Virginia are also required to file corporate income tax returns. The same goes for out-of-state companies that generated profits from Virginia-based sources. Virginia corporate income tax is 6% regardless of the amount of income.

Virginia Sales Tax

The general state sales tax in Virginia is 5%. Counties and cities are not allowed to collect local sales tax.

Groceries and raw food items are subject to only half of the state sales tax. However, prepared food such as restaurant meals and pre-made supermarket items are subject to higher special tax rates, usually ranging from 4% to 6.5% of their actual price. Tobacco products are subject to as much as 10% tax rate.

There are three state sales tax holidays in Virginia. These tax holidays usually fall on the last week of May, the first weekend of August, and early October. Certain products are sold tax-free during tax holidays.