Virginia State Income Tax

The Virginia state income tax is a progressive tax, meaning the rate of taxation increases as your taxable income rises.

Virginia State Income Tax rates are below the national average and its property taxes rank among the lowest in the country. The state does not have an estate tax, though it does tax some capital gains. It also has a progressive tax code, meaning that those with more money pay a higher percentage of their income in taxes. Virginia state income tax rates range from 2% to 5.75%. The top rate of 5.75% applies to all income above $17,000. This level hasn’t changed since 1990, even though the median income of single filers has increased 108% during that time

To file state income taxes in Virginia, you must have a valid Social Security number and a valid driver’s license or ID card. You must also be a resident of the state. You are a resident if you lived in the state or had a place of abode there for more than 183 days during the year.

Employees are required to file a Virginia Form VA-4, which determines the amount of Virginia withholding from their paychecks. The form is available online and should be completed by all employees. It is important to complete the form accurately, as failing to do so could result in a substantial penalty.

Payment Plan for Virginia State Income Tax

Individuals who cannot afford to pay their state income taxes in full may qualify for a tax payment plan. The state’s tax department will work with you to create a plan that works for both you and the Department of Taxation. You must agree to have any future state refunds applied toward your outstanding balance until the end of the plan. If you fail to meet your payments, the department can take a variety of collection actions, including wage garnishment and property levies.

Virginia State Income Tax Exemptions
Virginia State Income Tax 1

Virginia State Income Tax Exemptions

there are many deductions and credits available that can help lower your tax liability. These include standard deduction, itemized deductions, dependent care credit deductions and credits for taxes paid to other states.

Families who earn below the federal poverty guidelines may qualify for the non-refundable Virginia Low Income Individual Credit (CLI). The credit is worth $300 for each personal and dependent exemption claimed on a taxpayer’s return.

Veteran taxpayers can subtract portions of their military retirement benefits from Virginia state taxable income. Prior to 2022, veterans had to be at least 55 years old to subtract these benefits from their Virginia state taxable income.

Virginia State Income Tax Due Dates

The due date for filing Virginia state income tax returns is May 1 each year. The City of Fredericksburg offers free individual income tax assistance and preparation for city residents by appointment with a state tax assessment specialist. Those who prefer to file their own return can use the Department of Taxation’s eForm or send payments with Form 760ES Voucher 1.

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