How Much Tax Is Taken Out of My Paycheck in VA?

Understanding how taxes are withheld from your paycheck is a fundamental aspect of personal finance. Employers deduct a portion of your earnings for various taxes and contributions before you receive your net pay. This “pay-as-you-go” system ensures your tax obligations are met throughout the year, preventing a large bill at tax filing time. Knowing what influences these deductions helps in managing your budget and anticipating your take-home pay.

Understanding Federal Withholdings

Federal taxes represent a significant portion of paycheck deductions, funding various government programs. These withholdings generally include federal income tax, Social Security tax, and Medicare tax.

Federal Income Tax (FIT) is a progressive tax, meaning higher income levels are subject to higher tax rates. The amount withheld for FIT depends on your total income, your filing status (such as single, married filing jointly, or head of household), and the information you provide on your W-4 form. For the 2025 tax year, federal income tax rates range from 10% to 37%, applied across different income brackets.

Social Security tax, also known as Old-Age, Survivors, and Disability Insurance (OASDI), funds benefits for retirees, survivors, and individuals with disabilities. For 2025, employees contribute 6.2% of their gross wages to Social Security. This tax applies only up to an annual wage base limit, which is $176,100 for 2025 earnings.

Medicare tax helps fund hospital insurance for eligible individuals. The employee’s share of Medicare tax is 1.45% of all covered earnings, with no wage base limit, meaning all your earned income is subject to this tax. An additional Medicare tax of 0.9% applies to wages exceeding certain thresholds: $200,000 for single filers and $250,000 for married couples filing jointly. This additional tax is only paid by the employee, with no employer matching contribution.

Virginia State Income Tax

Virginia imposes its own state income tax, which is also a progressive system. The amount withheld for Virginia state income tax is determined by your taxable income and filing status. For the 2025 tax year, Virginia’s income tax rates range from 2% to 5.75%, across four brackets.

For example, Virginia’s progressive system taxes lower income brackets at 2% and gradually increases to the top rate of 5.75% for taxable income above $17,000. Most Virginia residents are required to file a state income tax return if their Virginia adjusted gross income exceeds $11,950 for single filers or $23,900 for married couples filing jointly.

Virginia offers a standard deduction, which can reduce your taxable income. For the 2025 tax year, the standard deduction is $8,750 for single filers and $17,500 for married couples filing jointly. Taxpayers can choose to claim either the standard deduction or itemize their deductions, whichever results in a lower taxable income. If you itemize deductions on your federal return, you must also itemize on your Virginia return. Virginia also provides personal exemptions and various tax credits that can further reduce your tax liability.

Deductions That Influence Taxable Income

Certain deductions from your gross pay can reduce the amount of income subject to federal and state income taxes. These are known as pre-tax deductions because they are subtracted before taxes are calculated, thereby lowering your taxable income.

Contributions to retirement accounts like a 401(k) or 403(b) are common pre-tax deductions. These contributions reduce your current taxable income, leading to lower federal and state income tax withholding. For 2025, the pretax limit for elective deferrals to 401(k), 403(b), and 457(b) plans is $23,500.

Health insurance premiums, Flexible Spending Accounts (FSAs), and Health Savings Accounts (HSAs) are other examples of pre-tax deductions. Money contributed to an FSA or HSA, or paid for health insurance through a payroll deduction, is generally not subject to federal or state income taxes. For instance, the 2025 annual limit on pre-tax contributions to a health FSA is $3,300.

Adjusting Your Tax Withholding

You have the ability to influence the amount of tax withheld from your paycheck by accurately completing and updating your withholding forms. The federal W-4 Form, Employee’s Withholding Certificate, is used to inform your employer how much federal income tax to withhold. This form considers your filing status, whether you have multiple jobs or a working spouse, any dependents you claim, and other potential adjustments like additional income or deductions.

For individuals with multiple jobs or those whose spouse also works, the W-4 form offers options to ensure adequate withholding for combined income. You can also account for tax credits, such as the child tax credit, by entering the appropriate amounts on the W-4. For 2025, the child tax credit is $2,000 per qualifying child under age 17.

Virginia also has its own form, the VA-4, Employee’s Virginia Income Tax Withholding Exemption Certificate. This form serves a similar purpose for state income tax withholding, allowing you to claim personal exemptions and other adjustments that affect your Virginia tax liability. Both the W-4 and VA-4 forms should be reviewed and updated whenever significant life events occur, such as marriage, divorce, the birth or adoption of a child, or a change in income or deductions.

Aim for accurate withholding to avoid under- or over-withholding. Under-withholding can result in a tax bill and potential penalties. Over-withholding means you are giving the government an interest-free loan, as that money could have been working for you. For those with complex financial situations, such as self-employment income or significant investment income, making estimated tax payments throughout the year may be necessary in addition to or instead of payroll withholding to meet tax obligations.