What Is the Virginia State Income Tax Rate?
Understand Virginia's income taxation. This guide clarifies how earnings are assessed, potential reductions, and the process for fulfilling state tax obligations.
Virginia imposes a state income tax on its residents, mirroring the federal income tax system in many ways. This tax is applied to income earned by individuals within the Commonwealth.
Virginia Income Tax Brackets and Rates
Virginia employs a progressive income tax structure, meaning different portions of an individual’s taxable income are taxed at varying rates. For the 2024 tax year, Virginia’s income tax rates range from 2% to 5.75%.
The tax brackets for 2024 income are consistent across all filing statuses, including single filers and those married filing jointly. The first $3,000 of taxable income is taxed at 2%. Income between $3,001 and $5,000 is taxed at 3%. For income ranging from $5,001 to $17,000, the rate is 5%. Taxable income exceeding $17,000 is subject to the highest rate of 5.75%.
Calculating Virginia Taxable Income
The process for determining Virginia taxable income begins with your federal adjusted gross income (AGI). From this federal AGI, specific additions and subtractions are made to arrive at the Virginia adjusted gross income. Virginia requires additions for certain income items not taxed federally but taxable by the state, such as interest from obligations of other states.
Conversely, various subtractions are allowed for income items taxed federally but exempt in Virginia. Common subtractions include state income tax refunds, certain retirement income, and military basic pay, each with specific limitations. After these adjustments, taxpayers can reduce their income further by either claiming a standard deduction or itemizing deductions. For the 2024 tax year, the standard deduction is $8,500 for single filers and $17,000 for married couples filing jointly. Virginia also allows personal exemptions of $930 for each taxpayer and dependent, with additional exemptions of $800 for individuals aged 65 or over or who are blind.
Virginia Tax Credits
After calculating the tax based on Virginia taxable income, tax credits can directly reduce the amount of tax owed. A tax credit differs from a deduction as it reduces tax liability dollar-for-dollar, rather than reducing taxable income.
Common individual tax credits include the Credit for Taxes Paid to Another State, which prevents double taxation if income is earned and taxed in more than one state. The Low Income Individuals Credit and a refundable Virginia Earned Income Tax Credit are also available for eligible taxpayers. Other credits exist for specific activities, such as land preservation or certain educator expenses.
Virginia Income Tax Filing and Payment
Most individuals, including residents, part-year residents, and non-residents with Virginia-source income, are required to file a Virginia income tax return if their Virginia adjusted gross income meets certain thresholds. For the 2024 tax year, this threshold is $11,950 for single filers and $23,900 for those married filing jointly. The annual deadline for filing individual income tax returns is generally May 1.
Taxpayers have several options for submitting their returns, including electronic filing through tax software or by mail. Electronic filing is often the fastest way to receive a refund if one is due. Payments for any tax owed can be made online directly from a bank account, by credit or debit card (though a service fee may apply), or via check or money order sent by mail. An automatic six-month extension to file is available, but any tax due must still be paid by the May 1 deadline to avoid penalties and interest.