How Much Tax Is Deducted From a Paycheck in VA?

A paycheck in Virginia involves various deductions that reduce an employee’s gross pay to their net, or take-home, pay. This article explains the different types of taxes withheld from a Virginia paycheck.

Federal Income Tax Withholding

Federal income tax is a deduction from an employee’s paycheck. The United States operates under a progressive tax system, meaning higher income levels are subject to higher tax rates. This system ensures that individuals with greater financial capacity contribute a larger percentage of their income towards taxes.

The amount of federal income tax withheld is determined by the information provided on IRS Form W-4, the Employee’s Withholding Certificate. On this form, employees indicate their filing status (e.g., single, married filing jointly, head of household), which impacts the standard deduction and tax rates applied to their withholding. Employees can also account for multiple jobs, claim dependents, or specify additional income or deductions to adjust their withholding. Employers use IRS-provided withholding tables, in conjunction with the W-4 information, to calculate the appropriate amount of federal income tax to deduct from each paycheck. Certain federal tax credits, such as the Child Tax Credit, can also influence the total tax liability and are accounted for in the withholding calculation based on W-4 entries.

Virginia State Income Tax Withholding

Virginia also levies a state income tax, which is withheld from employee paychecks. Virginia utilizes a graduated income tax system, similar to the federal structure, where different portions of income are taxed at varying rates. For instance, in 2025, Virginia’s income tax rates range from 2% to 5.75%.

The Virginia Form VA-4, or Personal Exemption Worksheet, is used to determine state withholding. On this form, employees provide information such as filing status, personal exemptions (for oneself, a spouse, and dependents), and additional exemptions for age or blindness. Virginia offers a standard deduction, which for 2025 is $8,000 for single filers and $16,000 for married filing jointly, along with a personal exemption of $930 per person. These reduce the taxable income for state withholding purposes.

Social Security and Medicare Taxes

Social Security and Medicare taxes, collectively known as Federal Insurance Contributions Act (FICA) taxes, are mandatory federal payroll taxes. These taxes fund the Social Security program, which provides retirement, disability, and survivor benefits, and Medicare, which offers health insurance for individuals typically aged 65 or older, and certain younger people with disabilities.

For 2025, the employee contribution rate for Social Security is 6.2% of wages, up to a wage base limit of $176,100. This means any earnings above this limit are not subject to Social Security tax. The Medicare tax rate for employees is 1.45% of all covered wages, with no wage base limit. An employer is required to withhold an Additional Medicare Tax of 0.9% on an individual’s wages exceeding $200,000, with thresholds of $200,000 for most taxpayers, $250,000 for married filing jointly, and $125,000 for married filing separately.

Factors Influencing Your Paycheck Deductions

The amount of federal income tax withheld from a paycheck is directly influenced by the choices made on the W-4 form. For example, indicating a specific filing status, claiming dependents, or entering amounts for other income (not from jobs) or deductions can significantly adjust the calculated withholding. Electing to have an additional amount of tax withheld each pay period is another option that increases the deduction.

Similarly, the Virginia state income tax withheld is impacted by the information provided on the Virginia Form VA-4. The number of exemptions claimed, which can include personal exemptions for oneself, a spouse, dependents, and additional exemptions for age or blindness, directly reduces the amount of income subject to state withholding. If an employee chooses to have additional state tax withheld, this also increases the deduction from their paycheck.

Pre-tax deductions also significantly reduce the amount of income tax withheld. Contributions to pre-tax accounts, such as 401(k) retirement plans, health insurance premiums, Flexible Spending Accounts (FSAs), and Health Savings Accounts (HSAs), are subtracted from an employee’s gross pay before federal and state income taxes are calculated. This reduces taxable income, resulting in lower federal and state income tax withholding and effectively increasing net pay compared to post-tax contributions.