🇺🇸 Virginia Income Tax — 2026 UPDATE

Virginia Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

⚠️Informational only — not legal or tax advice.

Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Returns filed: January – May 2026
Last verified: February 16, 2026

Virginia State Income Tax Update

Table of Contents

Click any item below to jump to the relevant section

Quick Reference

Does Virginia have income tax? Yes
Tax structure: Progressive (4 brackets)
Tax rates: 2% to 5.75%
Standard deduction (Single): $8,750
Standard deduction (Married Filing Jointly): $17,500
Local income tax: No
Official source: https://www.tax.virginia.gov

Key Takeaways

  • Residents: Virginia residents pay Virginia income tax on income from all sources
  • Non-residents: Non-residents pay Virginia income tax only on Virginia-source income
  • Tax rates: Progressive four-bracket structure with rates from 2% to 5.75%
  • Local income tax: Virginia does not permit local income taxes
  • Reciprocity: Virginia has reciprocal agreements with Kentucky, District of Columbia, Maryland, West Virginia, and Pennsylvania
  • Primary forms: Form 760 (residents), Form 760PY (part-year residents), Form 763 (nonresidents)

Quick Questions About Virginia Income Tax

What is the Virginia income tax rate for 2025? Virginia has a progressive income tax with four brackets and rates ranging from 2% to 5.75%. The top rate of 5.75% applies to taxable income exceeding $17,000.

Does Virginia have state income tax? Yes. Virginia levies a progressive state income tax on residents’ income from all sources and on nonresidents’ income from Virginia sources.

What are the income tax brackets in Virginia? For Tax Year 2025, Virginia has 4 tax brackets: 2% on income up to $3,000; 3% on income $3,001-$5,000; 5% on income $5,001-$17,000; and 5.75% on income over $17,000.

Is Social Security taxed in Virginia? No. Virginia does not tax Social Security benefits. If any Social Security benefits were taxed at the federal level, you can deduct that amount on your Virginia return.

Does Virginia tax retirement income? Yes. Distributions from retirement accounts such as pensions, traditional 401(k)s, and IRAs are fully taxable. However, taxpayers age 65 and older may qualify for an age deduction. Military retirement income up to $40,000 can be subtracted for tax years 2025 and later.

Do I need to file a Virginia income tax return? Virginia residents must file if Virginia adjusted gross income (VAGI) is $11,950 or more (single/married filing separately) or $23,900 or more (married filing jointly).

Source: https://www.tax.virginia.gov/individual-income-tax-filing

Virginia Income Tax Rates and Brackets (2026)

The following tax rates and brackets apply to income earned in 2025, reported on tax returns filed in 2026.

Rate Snapshot
Tax Attribute Amount/Status
Lowest Tax Rate 2%
Highest Tax Rate 5.75%
Tax Structure Progressive
Number of Brackets 4 brackets
State Income Tax Yes
Local Income Tax No
Standard Deduction (Single) $8,750
Standard Deduction (Married Filing Jointly) $17,500
Personal Exemption $930 per exemption
Age 65+ Additional Exemption $800
Blind Additional Exemption $800

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Virginia Income Tax Brackets 2026
All Filing Statuses
Taxable Income Tax Rate Tax Calculation
$0 – $3,000 2% 2% of taxable income
$3,001 – $5,000 3% $60 + 3% of excess over $3,000
$5,001 – $17,000 5% $120 + 5% of excess over $5,000
$17,001+ 5.75% $720 + 5.75% of excess over $17,000

Note: These brackets apply equally to Single Filers, Married Filing Jointly, Married Filing Separately, and Head of Household.

Example calculation for $50,000 taxable income:

  • First $3,000 at 2% = $60
  • Next $2,000 ($3,001-$5,000) at 3% = $60
  • Next $12,000 ($5,001-$17,000) at 5% = $600
  • Remaining $33,000 ($17,001-$50,000) at 5.75% = $1,897.50
  • Total Virginia tax: $2,617.50

Source: https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2025/760es-2025.pdf

Statutory Authority

State income tax in Virginia is authorized under the following legal framework:

Constitutional Authority:

  • Virginia Constitution, Article X, Section 1 – Grants taxing power to the Commonwealth
  • The General Assembly has the constitutional power to levy and collect taxes on incomes

Statutory Authority:

  • Virginia Code Title 58.1, Chapter 3 (§§ 58.1-300 through 58.1-540) – Income Tax
  • § 58.1-320 – Imposition of tax on residents
  • § 58.1-360 – Imposition of tax on nonresidents
  • § 58.1-321 – Virginia taxable income of residents
  • § 58.1-322 – Virginia standard deduction
  • § 58.1-342 – Reciprocity agreements with other states

Link to Virginia Code: https://law.lis.virginia.gov/vacode/title58.1/chapter3/

Administrative Regulations:

Legislative History:

  • Original enactment: 1843 (Virginia’s first income tax)
  • Modern income tax enacted: 1916
  • Current four-bracket structure: 1972
  • Standard deduction increase: 2019 (increased to $8,000/$16,000), 2025 (increased to $8,750/$17,500)
  • Current structure effective: January 1, 2025

Recent Legislative Changes:

  • House Bill 854 (2025): Increased standard deduction from $8,500 to $8,750 (single) and $17,000 to $17,500 (married filing jointly) for tax years 2025 and 2026
  • Senate Bill 806 (2025): Increased refundable Virginia Earned Income Tax Credit from 15% to 20% of federal EITC for tax years 2025 and 2026
  • Note: The standard deduction increase is scheduled to sunset after Tax Year 2026 and revert to $3,000 (single) and $6,000 (married) unless extended by legislation

This page compiles information directly from these statutory and regulatory authorities as implemented by the Virginia Department of Taxation.

Source: https://law.lis.virginia.gov/vacode/title58.1/chapter3/

Who Must File Virginia Income Tax

Residents

Virginia tax law requires residents to file a state income tax return if Virginia adjusted gross income (VAGI) meets or exceeds:

  • $11,950 for Single or Married Filing Separately
  • $23,900 for Married Filing Jointly

Note: In most cases, Virginia adjusted gross income equals federal adjusted gross income with certain additions and subtractions.

Who is a Virginia resident?

Virginia has two types of residents for tax purposes:

  1. Domiciliary resident: Your permanent home is in Virginia – the place where, whenever you are absent, you intend to return
  2. Actual resident: You maintained an abode in Virginia or were physically present in Virginia for more than 183 days during the tax year, even if you are a domiciliary resident of another state

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Part-Year Residents

Part-year residents must file if they:

  • Were a Virginia resident for part of the year, AND
  • Had income from any source during their period of Virginia residency that meets the filing thresholds

Income allocation: Part-year residents report income earned while a Virginia resident and exclude income earned while a resident of another state.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760py-instructions.pdf

Non-Residents

Non-residents must file if they had income from Virginia sources during the tax year, including:

  • Wages earned while physically working in Virginia
  • Business income from Virginia operations
  • Rental income from Virginia property
  • Prizes from Virginia Lottery
  • Gambling winnings from wagers placed at Virginia locations
  • Income from intangible property employed in a Virginia business

Exceptions for residents of reciprocal states:

Residents of Kentucky, District of Columbia, Maryland, West Virginia, and Pennsylvania may not need to file if their only Virginia income is wages and they meet specific reciprocity conditions.

Source: https://www.tax.virginia.gov/residency-status

What Income Is Taxable in Virginia

Fully Taxable Income

The following types of income are fully taxable in Virginia:

  • Wages and salaries
  • Self-employment income
  • Business income
  • Investment income (interest and dividends)
  • Capital gains
  • Retirement account distributions (401(k), IRA, pension)
  • Rental income
  • Unemployment compensation
  • Prizes and awards
  • Gambling winnings

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Social Security Benefits

Virginia does not tax Social Security benefits. If any of your Social Security benefits were taxed at the federal level, you can subtract that amount on your Virginia return.

Source: https://www.tax.virginia.gov/individual-income-tax-filing

Military Retirement Pay

Military retirement income may be subtracted as follows:

For Tax Year 2025:

  • Taxpayers may subtract up to $40,000 of military retirement income
  • This is an increase from $30,000 in prior years
  • The subtraction applies to military retirement pay received from the U.S. uniformed services

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Pension and Retirement Income

Private pensions: Fully taxable in Virginia

Public pensions: Fully taxable in Virginia

401(k) and Traditional IRA distributions: Fully taxable

Roth IRA qualified distributions: Not taxable (same as federal treatment)

Age Deduction: Taxpayers age 65 and older may qualify for an age deduction based on their birth date, filing status, and income level. For Tax Year 2025, this applies to taxpayers born on or before January 1, 1961.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Standard Deduction and Exemptions

Standard Deduction (Tax Year 2025)

Increased for 2025:

  • Single: $8,750
  • Married Filing Jointly: $17,500
  • Married Filing Separately: $8,750
  • Head of Household: $8,750

Sunset provision: The standard deduction is scheduled to revert to $3,000 (single) and $6,000 (married filing jointly) after Tax Year 2026 unless extended by legislation.

Important note: If you itemize deductions on your federal return, you must itemize on your Virginia return. You cannot claim the Virginia standard deduction if you itemized federally, even if your itemized deductions are less than the standard deduction.

Additional deductions:

  • Virginia does not provide additional standard deduction amounts for taxpayers age 65 or older or for blind taxpayers

Source: https://www.tax.virginia.gov/news/new-virginia-tax-laws-july-1-2025

Personal Exemptions

Virginia allows personal exemptions that reduce taxable income:

Standard personal exemptions:

  • $930 per exemption for:
    • Yourself
    • Your spouse (if filing jointly)
    • Each dependent

Additional exemptions:

  • Age 65 or older: $800 additional (must be age 65 on or before January 1, 2026)
  • Blind: $800 additional (must meet federal definition of blind)

Calculation:

  1. Count exemptions for yourself, spouse, and dependents × $930
  2. Count additional exemptions for age 65+ and blind × $800
  3. Add both amounts together

Example: Married couple filing jointly with 2 dependent children, both spouses age 67:

  • Personal exemptions: 4 × $930 = $3,720
  • Age exemptions: 2 × $800 = $1,600
  • Total exemptions: $5,320

Limitation: Taxpayers who claim the Credit for Low-Income Individuals cannot claim the age 65+ or blind exemptions.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Virginia Income Tax Credits

Virginia offers numerous tax credits to reduce tax liability. The following are the most commonly used credits for individual taxpayers.

1. Virginia Earned Income Tax Credit (EITC)

Virginia offers both a non-refundable and a refundable Earned Income Tax Credit based on the federal EITC.

For Tax Year 2025:

  • Refundable credit: 20% of federal EITC (increased from 15% in prior years)
  • Non-refundable credit: Available to all filers who claim federal EITC
  • Nonresidents and part-year residents are ineligible for the refundable portion

Eligibility:

  • Must have claimed federal Earned Income Credit on federal return
  • Must meet federal EITC income and family status requirements
  • Cannot also claim Credit for Low-Income Individuals

Calculation:

  1. Determine federal EITC amount from federal return
  2. Multiply by 20% for refundable credit (residents only)
  3. Non-refundable credit available in addition

Important: Virginia residents who claim the refundable EITC cannot claim an age deduction, even if over 65.

Source: https://www.tax.virginia.gov/news/new-virginia-tax-laws-july-1-2025

2. Credit for Low-Income Individuals

This credit is available to taxpayers who meet specific income thresholds.

Eligibility for Tax Year 2025:

  • Based on Virginia adjusted gross income and number of personal exemptions
  • Cannot be claimed if taxpayer or spouse claims age deduction, disability subtraction, or Earned Income Credit
  • Guidelines table available in Form 760 instructions

Maximum credit: $259 for married filing jointly when specific income thresholds are met

How to claim: Complete the calculation on Virginia Schedule ADJ

Note: This credit is mutually exclusive with the age deduction and EITC – you must choose which provides the greatest benefit.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

3. Credit for Taxes Paid to Another State

Virginia residents who pay income tax to another state may claim a credit on their Virginia return.

Eligibility:

  • Must be a Virginia resident (not available for part-year residents during their non-resident period)
  • Must have actually paid tax to another state
  • The same income must be taxed by both Virginia and the other state
  • Does not apply to income exempt under reciprocity agreements

Qualifying income:

  • Wages and salaries from another state (if reciprocity doesn’t apply)
  • Business income earned in another state
  • Rental income from property in another state
  • Gain from sale of business assets in another state

Non-qualifying income:

  • Interest and dividends (generally not taxable by source state)
  • Capital gains from sale of stocks or bonds
  • Pension income
  • Income exempt under Virginia-other state reciprocity agreement

Credit calculation:

  • Lesser of: (1) tax paid to other state, or (2) Virginia tax on that same income
  • Computed using Virginia Schedule OSC
  • Must attach copy of other state’s return

Source: https://www.tax.virginia.gov/credit-for-taxes-paid-to-another-state

4. Child and Dependent Care Credit

Virginia allows a credit for child and dependent care expenses.

Eligibility:

  • Must have claimed federal child and dependent care credit
  • Expenses must be for qualifying child or dependent
  • Must have been incurred to enable taxpayer to work

Credit amount: Percentage of federal credit based on Virginia adjusted gross income

How to claim: Automatically calculated based on federal return information

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

5. Education Credits

Virginia conforms to federal education credits:

American Opportunity Credit:

  • Up to $2,500 per eligible student
  • Available for first four years of post-secondary education
  • Phase-out at higher income levels

Lifetime Learning Credit:

  • Up to $2,000 per return
  • Available for all years of post-secondary education
  • Phase-out at higher income levels

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

6. Land Preservation Tax Credit

Available for taxpayers who donate conservation easements on Virginia property.

Credit amount: 40% of fair market value of donated easement

Limitations:

  • Complex qualifying requirements
  • Credit cap: $100,000 per taxpayer per year
  • Carryforward available for 10 years
  • Credits may be transferred or sold

Eligibility requires:

  • Qualifying conservation easement deed
  • Appraisal by certified appraiser
  • Virginia Department of Conservation and Recreation approval

Source: Virginia Code § 58.1-513; https://www.tax.virginia.gov

7. Historic Rehabilitation Tax Credit

Credit for substantial rehabilitation of certified historic structures in Virginia.

For Tax Year 2025:

  • Credit cap increased to $7.5 million (up from $5 million in prior years)
  • Available for owner-occupied and income-producing historic properties

Credit amount: 25% of qualified rehabilitation expenditures

Eligibility:

  • Building must be certified historic structure
  • Rehabilitation must meet Department of Historic Resources standards
  • Minimum expenditure requirements apply

Source: Virginia Code § 58.1-339.2; https://www.tax.virginia.gov

8. 529 Education Savings Plan Deduction

While technically a deduction rather than a credit, Virginia’s 529 deduction provides valuable tax benefits.

Deduction amount:

  • Up to $4,000 per account per year
  • Unlimited number of accounts
  • No income phase-out
  • Deduction accelerates for age 70+

Eligibility:

  • Contributions to Virginia529 accounts (formerly Virginia College Savings Plan)
  • Contributions to ABLE accounts for individuals with disabilities
  • Available to account owners and contributors

How to claim: Virginia Schedule VAC (Voluntary Contributions)

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

9. Firearm Safety Device Tax Credit

For Tax Year 2025:

  • Credit expanded to include purchases from commercial retailers (previously limited to federally licensed dealers)
  • Credit for purchase of qualifying firearm safety devices

Eligibility and details: See Virginia Department of Taxation website for qualifying devices and application process

Source: https://www.tax.virginia.gov/news/new-virginia-tax-laws-july-1-2025

Other Available Credits

Virginia offers numerous other credits for specific situations:

  • Neighborhood Assistance Act Credit – For contributions to approved charitable organizations
  • Recyclable Materials Processing Equipment Credit – For businesses investing in recycling equipment
  • Green Jobs Creation Tax Credit
  • Biodiesel and Green Diesel Fuels Credit
  • Research and Development Expenses Credit
  • Various housing and community development credits

Complete list: Virginia Schedule CR (Tax Credit Schedule) and Instructions

Source: https://www.tax.virginia.gov/tax-credits

Filing Deadlines

Regular Deadline

May 1, 2026 for Tax Year 2025 returns

Virginia’s regular filing deadline is May 1, different from the federal April 15 deadline. This provides Virginia taxpayers with an additional two weeks to file their state return.

Note: When May 1 falls on a Saturday, Sunday, or legal holiday, the deadline extends to the next business day.

Extension Deadline

November 1, 2026 (automatic 6-month extension)

Virginia provides an automatic 6-month extension for filing individual income tax returns. No application is required.

Important: The extension is for filing the return only, not for payment of taxes owed.

To avoid penalties:

  • Pay at least 90% of your tax liability by the original May 1 deadline
  • File extension payment using Form 760IP (Extension Payment Voucher)
  • Extension payment can be made electronically at https://www.tax.virginia.gov/payments

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Estimated Tax Payments

If you have income not subject to withholding (self-employment, investment income, etc.), quarterly estimated tax payments are due:

  • Q1: May 1, 2026
  • Q2: June 15, 2026
  • Q3: September 15, 2026
  • Q4: January 15, 2027

Who must make estimated payments:

You must make estimated tax payments if:

  • Your Virginia income tax liability (after subtracting withholding and credits) is expected to exceed $1,000, AND
  • Expected withholding and credits will be less than 90% of current year tax or 100% of prior year tax

Form: Form 760ES (Estimated Income Tax Payment Voucher)

Electronic payments: Taxpayers whose estimated tax liability exceeds $1,500 per installment or total liability exceeds $6,000 must file and pay electronically.

Source: https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2025/760es-2025.pdf

Special Circumstances

Overseas: If living or traveling outside the United States on May 1, 2026, your deadline extends to July 1, 2026.

Combat zone: Military members serving in combat zones receive the same extensions granted by the IRS, plus an additional 15 days, or a 1-year extension, whichever is later.

Farmers, fishermen, and merchant seamen: If at least 2/3 of your gross income comes from self-employment in these occupations, you may file by March 1, 2027, without making estimated payments, provided you pay the entire tax due by that date.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Filing Options for Virginia Income Tax

Online Filing (E-File)

Electronic filing is the fastest and most accurate way to file your Virginia tax return.

Virginia Department of Taxation approved methods:

  1. Free File: Free federal and state e-filing for taxpayers meeting income and eligibility requirements
  2. Commercial tax software: TurboTax, H&R Block, TaxAct, and other IRS-approved providers that support Virginia returns
  3. Tax professional: CPA, Enrolled Agent (EA), or tax attorney who files electronically

Benefits of e-filing:

  • Faster refunds (typically within 1 week, up to 4 weeks)
  • Automatic calculation reduces errors
  • Electronic confirmation of receipt
  • More secure than paper filing
  • Can combine with direct deposit for fastest refund

Official portal: https://www.tax.virginia.gov/individual-income-tax-filing

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Paper Filing

Paper returns may be filed by mail:

Forms availability:

  • Download from Virginia Department of Taxation website
  • Print using tax preparation software
  • Order by calling 804-367-8031

Mailing addresses:

Virginia uses a unique system where most taxpayers mail returns to their local Commissioner of the Revenue rather than directly to the state Department of Taxation.

If filing directly with Department:

  • With payment: Virginia Department of Taxation, P.O. Box 1478, Richmond, VA 23218-1478
  • Requesting refund or no payment due: Same address

If filing with locality: Use the locality mailing address listed in the Form 760 instructions for your city or county (see pages 45-48 of Form 760 instructions for complete list).

Processing time: Paper returns take approximately 8 weeks to process. Using Certified Mail can add an additional 3 weeks to processing time.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Tax Preparer Options

Licensed tax professionals who can prepare Virginia returns:

  • Certified Public Accountant (CPA)
  • Enrolled Agent (EA) – Licensed by IRS
  • Tax Attorney
  • Virginia-authorized e-file provider

Verification: Verify preparer credentials and ensure they have a Preparer Tax Identification Number (PTIN) required for all paid preparers.

Source: https://www.tax.virginia.gov/individual-income-tax-filing

Local Income Taxes

Virginia does not permit local income taxes.

Only state-level income tax applies throughout Virginia. All cities and counties operate under the same state income tax structure with rates from 2% to 5.75%.

This differs from neighboring states like Maryland (which has county income taxes in addition to state tax) and Pennsylvania (which has numerous local earned income taxes).

What this means for Virginia taxpayers:

  • One income tax return covers both state and local requirements
  • No separate local tax forms required
  • No need to track which locality you live or work in for income tax purposes
  • Moving between Virginia localities does not affect income tax rates or filing requirements

Note: While Virginia has no local income taxes, localities do levy local taxes on:

  • Real estate (property tax)
  • Personal property (vehicle tax)
  • Sales tax (local portion added to state sales tax)

Source: https://www.tax.virginia.gov/local-tax-rates

Special Considerations for Virginia Income Tax

VirginiaRemote Workers and Multi-State Taxation

Living in Virginia, Working for Out-of-State Employer

As a Virginia resident, you owe Virginia income tax on ALL income, regardless of where your employer is located or where the company is headquartered.

What this means:

  • Employer location does NOT determine tax obligation
  • Income from employers in other states is fully taxable in Virginia
  • Virginia law requires proper Virginia tax withholding for resident employees
  • You report worldwide income on your Virginia return

Example: A Virginia resident working remotely for a California company owes Virginia income tax on all wages from that employment.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Working in Virginia, Living in Another State

Non-residents who perform work physically in Virginia owe Virginia income tax on income earned from Virginia sources.

Physical Presence Rule: Income is sourced to Virginia based on where work is physically performed, not where the employer is located or where you live.

Exception: Virginia’s reciprocity agreements with five jurisdictions (Kentucky, District of Columbia, Maryland, West Virginia, Pennsylvania) may exempt certain wage income – see Reciprocal Agreements section below.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-763-instructions.pdf

⚠️ Interstate Tax Risk Indicator

Remote workers involving Virginia commonly encounter dual taxation complications with specific states:

Working with these states requires careful planning:

  • Maryland – Complex credit system; reciprocity applies with conditions
  • District of Columbia – Reciprocity for commuters; DC Unincorporated Business Franchise Tax separate
  • North Carolina – No reciprocity; Virginia residents working in NC may face dual taxation
  • New York – Convenience of employer rule; NY may tax remote workers
  • Pennsylvania – Reciprocity for wages only with 183-day rule; local PA taxes not covered by reciprocity

Source: https://www.tax.virginia.gov/reciprocity and https://www.tax.virginia.gov/credit-for-taxes-paid-to-another-state

“Convenience of the Employer” Rule

Virginia does NOT apply a “convenience of the employer” rule.

Non-residents are taxed only on income from work physically performed in Virginia. If you live in another state and work remotely for a Virginia employer, Virginia does not tax that income unless you are physically present in Virginia while performing the work.

Contrast with other states:

  • New York and several other states DO apply convenience rules
  • Under those states’ rules, remote workers may owe tax to the employer’s state even when working from home
  • Virginia residents working remotely for NY employers should consult with tax professionals about NY’s convenience rule

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-763-instructions.pdf

Reciprocal Agreements

Virginia has reciprocal agreements with five jurisdictions that may exempt certain wage income from taxation.

Virginia Residents Working in Reciprocal States

Kentucky and District of Columbia:

Virginia residents who commute daily to work in Kentucky or DC are exempt from Kentucky/DC income tax on wage and salary income.

Requirements:

  • Must commute daily to place of employment
  • Exemption applies to wages and salaries only
  • Does not apply if you maintain an abode in Kentucky or DC

Maryland, West Virginia, and Pennsylvania:

Virginia residents working in these states are exempt from that state’s income tax on wages and salaries if ALL of the following conditions are met:

  1. You maintain legal domicile in Virginia
  2. You are present in the other state for 183 days or less during the tax year (or do not live in the other state at all)
  3. Your only income from the other state is wages and salaries

What this means:

  • You do not file a tax return in the reciprocal state
  • All income is reported on your Virginia return
  • You owe Virginia tax on all income

If your employer withheld taxes in error: File that state’s nonresident return to request a refund.

Source: https://www.tax.virginia.gov/reciprocity

Non-Residents from Reciprocal States Working in Virginia

Residents of Kentucky, District of Columbia, Maryland, West Virginia, and Pennsylvania who work in Virginia may be exempt from Virginia income tax on wages under the same reciprocity conditions listed above.

To claim exemption:

  • Complete Form VA-4 (Virginia Employee’s Withholding Exemption Certificate)
  • Give to your Virginia employer
  • Must re-certify exemption annually

Important: Reciprocity applies to individual income tax only, not to business taxes or other Virginia taxes.

What if reciprocity doesn’t apply:

If you don’t meet reciprocity conditions (example: you maintain an abode in Virginia for more than 183 days, or have non-wage income), you must:

  • File Virginia Form 763 (Nonresident Return)
  • Report Virginia source income
  • Pay Virginia tax on that income

Source: https://www.tax.virginia.gov/reciprocity

Multi-State Tax Filing

When earning income in multiple states, Virginia residents must:

  1. File a resident return in Virginia (Form 760) reporting all income from all sources
  2. File non-resident returns in other states where income was earned
  3. Claim a credit on Virginia return for taxes paid to other states

Forms required:

  • Virginia Schedule OSC (Credit for Taxes Paid to Another State)
  • Copies of other states’ returns

Credit calculation:

The credit is limited to the LESSER of:

  • The amount of tax actually paid to the other state, OR
  • The amount of Virginia tax imposed on the income earned in the other state

Virginia computes this by multiplying your Virginia tax liability by a fraction:

  • Numerator: Income taxed by the other state
  • Denominator: Your Virginia taxable income

Example:

  • Total Virginia taxable income: $100,000
  • Virginia tax: $5,120
  • Income earned in Maryland: $30,000
  • Maryland tax paid: $1,800
  • Credit limitation: $5,120 × ($30,000 ÷ $100,000) = $1,536
  • Credit allowed: $1,536 (lesser of $1,800 paid or $1,536 limitation)

Important notes:

  • Credit is NOT available for taxes paid to reciprocal states on income exempt under reciprocity
  • Part-year residents generally cannot claim credit for taxes paid during their period of non-residency
  • Credit does not apply to local taxes paid to other jurisdictions

Source: https://www.tax.virginia.gov/credit-for-taxes-paid-to-another-state

Tax Residency vs Domicile

Understanding the difference between residency and domicile is critical for determining Virginia tax obligations.

Domicile Defined

Domicile is your permanent legal home – the place where you intend to return and consider “home” indefinitely.

Key characteristics:

  • You can have only ONE domicile at a time
  • Domicile continues until you establish a new domicile elsewhere with intent to remain
  • Temporary absences do not change domicile
  • Intent to return is critical

Factors establishing Virginia domicile:

  • Where you maintain your primary residence
  • Where you register to vote
  • Where you obtain driver’s license
  • Where you file homestead exemption
  • Where your family resides
  • Where you maintain bank accounts
  • Where you belong to religious and social organizations
  • Where you own real property
  • Stated intent in legal documents (wills, trusts)
  • Where you file resident tax returns

Source: https://www.tax.virginia.gov/residency-status

Residency Defined

Residency for tax purposes can be established through physical presence even without Virginia domicile.

Actual Resident Rule:

You are an actual resident of Virginia if:

  • You maintained a place of abode in Virginia, AND
  • You were physically present in Virginia for more than 183 days during the tax year

Even if:

  • Your domicile remains in another state
  • You consider another state your permanent home
  • You plan to return to another state eventually

This means: A person can be a tax resident of Virginia without changing domicile from another state.

Source: Virginia Code § 58.1-302; https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Critical Differences
Factor Domicile Tax Residency
Number allowed One at a time Can be resident of multiple states
Based on Intent + connections Physical presence + statutory rules
Changes when Establish new permanent home with intent Meet state's 183-day presence threshold
Tax impact Owe tax as domiciliary resident Owe tax as actual resident
Proves Permanent ties and intent Physical presence for duration

Common Conflict Scenarios

Scenario 1: Snowbirds

  • Domicile: Virginia (permanent home, voting, family)
  • Winter residence: Florida (5 months/year)
  • Tax result: Remain Virginia resident; report all income on Virginia return (under 183 days in Florida)

Scenario 2: Extended work assignment

  • Domicile: North Carolina (permanent home, family, voting)
  • Work assignment: Virginia (8 months, rented apartment, more than 183 days)
  • Tax result: Actual resident of Virginia even though domicile unchanged; must file Virginia resident return

Scenario 3: Military stationed in Virginia

  • Domicile: Texas (home of record)
  • Duty station: Virginia (stationed 2 years)
  • Tax result: NOT a Virginia resident due to Servicemembers Civil Relief Act protection; remains Texas resident for tax purposes

Source: https://www.tax.virginia.gov/residency-status

Burden of Proof

If Virginia claims you are a resident and you dispute it, the burden typically falls on the taxpayer to prove non-residency or domicile elsewhere.

Common audit triggers:

  • Maintaining Virginia driver’s license while claiming residency elsewhere
  • Owning property in Virginia while claiming non-residency
  • Family remaining in Virginia while taxpayer works elsewhere
  • Voter registration in Virginia while claiming other domicile
  • Day count near 183-day statutory threshold
  • Professional licenses maintained in Virginia

Documentation Virginia may request:

  • Day-count logs and calendar records
  • Travel itineraries and receipts
  • Credit card statements showing geographic spending
  • Cell phone records with location data
  • E-ZPass and toll records
  • Utility bills from claimed residence state
  • Lease or property documents
  • Driver’s license, vehicle registration
  • Voter registration
  • Bank and financial account statements

Source: Virginia Department of Taxation audit guidance

Multi-State Residency Conflicts

It is possible to be considered a resident of two states simultaneously if each state’s rules independently classify you as resident.

Dual residency example:

  • Virginia domicile (permanent home, voting)
  • Maryland actual residency (apartment, 200 days present)
  • Result: Resident of both states

Resolution:

  1. File resident returns in both states reporting all income
  2. Claim credit on domicile state (Virginia) return for taxes paid to actual resident state (Maryland)
  3. May require professional tax assistance to properly allocate income and credits

Source: https://www.tax.virginia.gov/laws-rules-decisions/rulings-tax-commissioner/24-59

Military Personnel

Servicemembers Civil Relief Act (SCRA)

Active duty military members stationed in Virginia due to military orders:

  • Do NOT become Virginia residents solely due to military orders
  • Pay income tax to their state of legal residence (domicile/home of record)
  • Not subject to Virginia income tax on military pay

Military Spouses Residency Relief Act (MSRRA):

Spouses of active duty military can maintain their home state residency and are not taxed by Virginia on income earned in Virginia if:

  • Spouse is in Virginia solely to be with servicemember
  • Servicemember is in Virginia under military orders
  • Spouse maintains domicile in another state

Election under Veterans Auto and Education Improvement Act:

For Tax Year 2025 and after, servicemembers and their spouses may elect to use one of the following for tax purposes:

  • The residence or domicile of the servicemember
  • The residence or domicile of the spouse
  • The permanent duty station of the servicemember

Servicemembers and spouses are not required to elect the same residence. No form is required to be filed with Virginia to make this election.

To claim exemption from Virginia withholding:

  • Complete Form VA-4
  • Check the box indicating exemption under SCRA
  • Provide to Virginia employer

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Military Retirement Pay

For Tax Year 2025:

Virginia allows a subtraction for military retirement income of up to $40,000.

This is an increase from $30,000 in prior tax years.

Who qualifies:

  • Recipients of retirement pay from U.S. uniformed services
  • Includes Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard
  • Includes commissioned officers of Public Health Service and National Oceanic and Atmospheric Administration

How to claim:

  • Report military retirement pay as income
  • Claim subtraction on Virginia Schedule ADJ

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

What Military Members DO Owe Tax On

Military members who ARE Virginia residents (domicile in Virginia) owe Virginia income tax on:

  • Non-military income earned in Virginia
  • Investment income (interest, dividends, capital gains)
  • Rental income from Virginia property
  • Business income
  • Spouse’s income (if spouse is not protected under MSRRA)

Military pay is exempt only for:

  • Non-residents stationed in Virginia under military orders
  • Virginia residents whose military pay qualifies for subtraction

Source: https://www.tax.virginia.gov/individual-income-tax-filing

Retirees

Social Security Benefits

Virginia does not tax Social Security benefits.

If any of your Social Security benefits were included in federal taxable income, you can subtract that amount on your Virginia return (Schedule ADJ, Line 5).

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Pension Income

Private Pensions: Fully taxable in Virginia. Distributions from private sector pensions are included in Virginia taxable income.

Public Pensions: Fully taxable in Virginia, including:

  • Federal government pensions
  • Virginia state government pensions
  • Virginia local government pensions
  • Other states’ government pensions

No pension exclusion: Virginia does not offer a general pension income exclusion or subtraction (except for military retirement pay up to $40,000).

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Retirement Account Distributions

401(k) and Traditional IRA: Fully taxable in Virginia. Distributions are included in Virginia adjusted gross income.

Roth IRA: Qualified distributions are not taxable (same as federal treatment).

Early distributions: Taxable at ordinary rates. Virginia follows federal rules on early distribution penalties.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Age Deduction for Taxpayers 65 and Older

Virginia offers an age deduction for taxpayers born on or before January 1, 1961 (age 65+ during Tax Year 2025).

Income-based qualification:

The age deduction is based on:

  • Your birth date
  • Your filing status
  • Your income level

For Tax Year 2025:

  • Taxpayers born between January 2, 1939, and January 1, 1961, must use a worksheet to calculate the deduction
  • Taxpayers born on or before January 1, 1939, may qualify for the maximum $12,000 deduction

Important limitations:

  • You cannot claim both an age deduction AND a disability income subtraction
  • You cannot claim an age deduction if you (or your spouse) claimed the Credit for Low-Income Individuals or Virginia Earned Income Credit
  • Married taxpayers: neither spouse may claim an age deduction if one spouse claimed the low-income credit

Additional exemption: Taxpayers age 65+ also receive an $800 additional personal exemption (separate from the age deduction).

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Students

College students attending school in Virginia do NOT automatically become residents for tax purposes.

You remain a non-resident if:

  • You maintain legal residence (domicile) in another state
  • Your presence in Virginia is temporary for educational purposes
  • You intend to return to your home state after graduation
  • Your parents claim you as a dependent on their tax return in another state

You owe Virginia tax only on Virginia-source income:

  • Wages earned from working in Virginia during school
  • Scholarships or fellowships used for non-qualified expenses (if Virginia taxes these)
  • Business income from Virginia sources

Establishing Virginia residency as a student:

Students CAN become Virginia residents if they take affirmative steps to establish Virginia domicile:

  • Register to vote in Virginia
  • Obtain Virginia driver’s license
  • Purchase or lease property in Virginia with intent to remain
  • Maintain continuous presence beyond educational purposes
  • Change domicile with intent to remain permanently

Evidence of intent matters:

  • Mere presence for school is not enough to change domicile
  • Working during summer breaks in home state indicates home state domicile
  • Maintaining home state driver’s license indicates home state domicile
  • Registering to vote in home state indicates home state domicile

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Part-Year Residents

If you moved TO or FROM Virginia during 2025, you must file as a part-year resident.

Form required: Form 760PY (Part-Year Resident Income Tax Return)

Income Allocation Rules

Report on Virginia return:

  • ALL income earned while a Virginia resident (regardless of source)
  • This includes income from other states earned during Virginia residency period

Do NOT report on Virginia return:

  • Income earned while a resident of another state

Proration:

  • Standard deduction and personal exemptions are prorated based on the number of months you were a Virginia resident

Moving TO Virginia

Steps:

  1. Determine Virginia residency start date (day you established Virginia domicile or became actual resident)
  2. Report all income from that date forward on Virginia Form 760PY
  3. File non-resident or part-year return in your former state for income earned before moving

Example: Moved from North Carolina to Virginia on July 1, 2025:

  • Report income from July 1 – December 31 on Virginia return
  • Report income from January 1 – June 30 on North Carolina return

Moving FROM Virginia

Steps:

  1. Determine Virginia residency end date (day you established domicile in another state)
  2. Report all income through that date on Virginia Form 760PY
  3. File non-resident or part-year return in new state

Important: You must actually establish domicile in another state, not just move there temporarily. If you move but intend to return to Virginia within 6 months, you remain a Virginia resident.

Virginia Source Income While Non-Resident

If you had Virginia source income during the portion of the year you were a non-resident, you may also need to file Form 763 (Nonresident Return) in addition to Form 760PY.

Example: You were a Virginia resident January – August 2025, then moved to Maryland. In October 2025, you received rental income from Virginia property:

  • File Form 760PY for January – August income
  • File Form 763 for October rental income

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760py-instructions.pdf

Common Tax Filing Situations

These are factual clarifications based on official Virginia guidance and tax law.

Situation: “My employer is in another state, so I don’t owe Virginia tax”

Virginia law: Virginia residents owe tax on all income regardless of employer location. Employer location does not determine tax obligation. If you are a Virginia resident, you report all income on your Virginia return.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Situation: “I work remotely full-time from home, so I don’t owe tax anywhere”

Tax law principle: All income is taxable in at least one jurisdiction. Remote work does not exempt income from taxation. As a Virginia resident working remotely, you owe Virginia tax on all income. If you are a non-resident working remotely for a Virginia company from outside Virginia, you generally do not owe Virginia tax.

Source: IRS Publication 17; https://www.tax.virginia.gov

Situation: “I’m a part-year resident, so I owe half the tax”

Virginia law: Part-year residents owe tax only on income earned during their Virginia residency period, not a simple percentage reduction. You must allocate income based on when it was earned and report only income earned while a Virginia resident.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760py-instructions.pdf

Situation: “I lived in Virginia but worked in Maryland, so I have to pay tax to both states”

Virginia law: This depends on reciprocity. If you meet all reciprocity conditions (183 days or less in Maryland, wages only, maintained Virginia domicile), you do not owe Maryland tax. If reciprocity does not apply, you file returns in both states and claim a credit on your Virginia return for taxes paid to Maryland.

Source: https://www.tax.virginia.gov/reciprocity

Situation: “I’m a military member stationed in Virginia, so I have to pay Virginia tax”

Federal law (SCRA): Military members do not become residents of a state solely due to military orders. You pay tax to your state of legal residence (home of record). Virginia cannot tax your military pay. However, you may owe Virginia tax on non-military income.

Source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf

Situation: “I spent 150 days in Virginia for work, so I’m not a Virginia resident”

Virginia law: The 183-day rule determines “actual residency” status. If you spent more than 183 days in Virginia AND maintained a place of abode in Virginia, you may be an actual resident even if you are domiciled elsewhere. This would require filing a Virginia resident return. However, if you were only present for work without maintaining an abode, different rules apply.

Source: https://www.tax.virginia.gov/residency-status

Forms & Publications

Primary Tax Return Forms

Resident return:

Part-year resident return:

Non-resident return:

Special nonresident form:

  • Form 763-S – Virginia Special Nonresident Claim for Individual Income Tax Withheld
  • Use when: Employer withheld Virginia tax in error; you qualify for reciprocity exemption; you are military/spouse protected under SCRA
  • Form download: https://www.tax.virginia.gov/forms

Common Schedules

Schedule ADJ:

Schedule A:

Schedule OSC:

Schedule CR:

Schedule VAC:

  • Voluntary Contributions (Virginia529/ABLE and other contributions)
  • Required if: Contributing to 529 accounts or voluntary funds
  • Download: https://www.tax.virginia.gov/forms

Withholding Forms

Employee Withholding Certificate:

  • Form VA-4 – Virginia Employee’s Withholding Exemption Certificate
  • Virginia equivalent of federal W-4
  • Used to: Claim exemptions from Virginia withholding
  • Download: https://www.tax.virginia.gov/forms

Exemption for Reciprocity:

  • Form VA-4 includes checkbox for reciprocity exemption
  • Must be completed annually
  • Give to Virginia employer if you are resident of reciprocal state

Source: https://www.tax.virginia.gov/forms

Estimated Tax Forms

Individual estimated tax:

Extension payment:

Underpayment forms:

  • Form 760C – Underpayment of Estimated Tax by Individuals
  • Form 760F – Underpayment of Estimated Tax by Farmers and Fishermen
  • Download: https://www.tax.virginia.gov/forms

Key Publications

Individual Income Tax Guide:

Employer Withholding Guide:

Residency Guidance:

Reciprocity Information:

Tax Credits Guide:

Where to Submit Paper Returns

Direct to Department of Taxation:

  • Virginia Department of Taxation
  • P.O. Box 1478
  • Richmond, VA 23218-1478

To local Commissioner of Revenue:

Note: Virginia’s unique system allows taxpayers to file with either the state Department or their local Commissioner of the Revenue.

Source: https://www.tax.virginia.gov/forms

Penalties and Interest

Late Filing Penalty

Virginia imposes a penalty of 6% per month (maximum 30%) on unpaid tax if return is filed late.

Calculation:

  • Penalty applies to the net tax due
  • Calculated from original due date until return is filed
  • Minimum penalty: $10 if any tax is due

Example: If you owe $1,000 and file 3 months late:

  • Penalty: $1,000 × 6% × 3 months = $180

Source: Virginia Code § 58.1-520; https://www.tax.virginia.gov

Late Payment Penalty

Virginia imposes a penalty of 6% per month (maximum 30%) on unpaid tax if payment is late, even if return was filed on time.

Applies when:

  • Return filed on time but tax not paid
  • Extension granted but 90% of tax not paid by original deadline

Source: Virginia Code § 58.1-520; https://www.tax.virginia.gov

Interest on Unpaid Tax

Interest accrues on unpaid tax from the original due date until paid in full.

Rate for 2025/2026:

  • 9% per year for assessments and underpayments
  • 9% per year for overpayments (refunds)
  • Rate established quarterly based on federal short-term rate plus 2%

Current rates (Q1 2025):

  • Federal underpayment rate: 7%
  • Virginia underpayment rate: 9% (federal rate + 2%)

Interest compounds: Interest is calculated on a daily basis using the daily rate of 0.025% (9% ÷ 365 days).

Source: Virginia Tax Bulletin 24-8; https://www.tax.virginia.gov/laws-rules-decisions/tax-bulletins/24-8

Underpayment of Estimated Tax Penalty

If you are self-employed or have income not subject to withholding, you may owe a penalty for underpaying estimated taxes.

Penalty applies if:

  • You did not pay at least 90% of current year tax liability through withholding and estimated payments, OR
  • You did not pay at least 100% of prior year tax liability through withholding and estimated payments

Safe harbor provisions:

No penalty applies if:

  • Your total tax liability is $150 or less, OR
  • You paid at least 90% of current year tax through timely estimated payments and withholding, OR
  • You paid at least 100% of prior year tax

Rate: 9% per year on the underpayment amount for each quarter

Forms:

  • Form 760C – Underpayment of Estimated Tax by Individuals
  • Form 760F – Underpayment of Estimated Tax by Farmers and Fishermen

Source: https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2025/760c-2025.pdf

Waiver of Penalties

Virginia law provides limited circumstances for penalty waiver:

Reasonable cause:

  • Natural disaster
  • Death or serious illness of taxpayer or immediate family
  • Unavoidable absence
  • Other circumstances beyond taxpayer’s control

To request waiver:

  • Submit written explanation with supporting documentation
  • File with return or in response to penalty assessment
  • Department reviews on case-by-case basis

Interest cannot be waived: Virginia law requires interest to accrue; it cannot be waived even with reasonable cause.

Source: Virginia Code § 58.1-105; https://www.tax.virginia.gov

Information Verification Log

Information Type Source Last Verified
Tax rates and brackets https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2025/760es-2025.pdf February 16, 2026
Standard deduction amounts https://www.tax.virginia.gov/news/new-virginia-tax-laws-july-1-2025 February 16, 2026
Personal exemption amounts https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf February 16, 2026
Filing deadlines https://www.tax.virginia.gov/individual-income-tax-filing February 16, 2026
Reciprocity agreements https://www.tax.virginia.gov/reciprocity February 16, 2026
Forms and publications https://www.tax.virginia.gov/forms February 16, 2026
Interest rates https://www.tax.virginia.gov/laws-rules-decisions/tax-bulletins/24-8 February 16, 2026
Virginia Code provisions https://law.lis.virginia.gov/vacode/title58.1/chapter3/ February 16, 2026

Official Virginia Income Tax Resources

All information on this page is compiled exclusively from official government sources.

Virginia Department of Taxation

Main Website: https://www.tax.virginia.gov

Individual Income Tax Section: https://www.tax.virginia.gov/individual-income-tax-filing

Specific Resources:

Virginia Tax Code and Regulations

Virginia Code:

Specific Statutory Sections:

  • § 58.1-320 – Imposition of tax on residents
  • § 58.1-322 – Standard deduction
  • § 58.1-332 – Credit for taxes paid to another state
  • § 58.1-342 – Reciprocity agreements

Virginia Administrative Code:

Legislative Information:

  • Virginia Legislative Information System: https://lis.virginia.gov
  • Search enacted legislation affecting taxation
  • View current and historical bills

Contact Information

Virginia Department of Taxation:

Customer Service:

  • Phone: 804-367-8031
  • TTY (Hearing Impaired): Dial 711
  • Hours: Monday-Friday, 8:30 AM – 5:00 PM Eastern Time
  • Email: Contact form available on website

Mailing Address:

  • Virginia Department of Taxation
  • P.O. Box 1115
  • Richmond, VA 23218-1115

Physical Address:

  • Virginia Department of Taxation
  • 600 E. Main Street
  • Richmond, VA 23219

Note: Do not mail tax returns to P.O. Box 1115 – use P.O. Box 1478 or local Commissioner address

Local Commissioner of the Revenue Offices:

  • Each Virginia city and county has a local tax office
  • Phone numbers and addresses: See Form 760 instructions pages 45-48
  • Locality lookup: https://www.tax.virginia.gov (search “locality code lookup”)

Free Tax Assistance

VITA (Volunteer Income Tax Assistance):

TCE (Tax Counseling for the Elderly):

AARP Tax-Aide:

Military Tax Assistance:

Where to Check for Updates

Current Tax Rate Tables

Website: https://www.tax.virginia.gov/individual-income-tax-filing
Updated: Annually, typically published November-December
Tax Year 2025 information: Available now for filing in 2026

Forms Library

Website: https://www.tax.virginia.gov/forms
Availability: Current year forms available starting December
Forms for Tax Year 2025: Available now

Legislative Changes

Virginia General Assembly:

  • Tax legislation: https://lis.virginia.gov
  • Search for bills affecting Title 58.1 (Taxation)
  • Legislative summaries published by Department of Taxation

Department of Taxation Legislative Summary:

Administrative Guidance

Tax Bulletins:

Rulings of the Tax Commissioner:

Public Documents:

Virginia Administrative Code:

Taxpayer Notices

Department of Taxation News:

Interest Rate Updates:

Email Subscription

Subscribe for updates:

Note: This page will be reviewed and updated in January 2027 for Tax Year 2026 information. For real-time updates, always consult official Virginia Department of Taxation website.

Tax Glossary

Virginia Adjusted Gross Income (VAGI): Federal adjusted gross income plus certain additions minus certain subtractions. Used to determine filing requirements and tax liability.

Taxable Income: Virginia adjusted gross income minus standard deduction (or itemized deductions), personal exemptions, and other deductions. This is the amount subject to Virginia income tax.

Resident: Individual who maintains domicile in Virginia or meets the actual resident test (183+ days and place of abode).

Non-Resident: Individual who does not meet Virginia’s residency requirements but earns income from Virginia sources.

Part-Year Resident: Individual who moved into or out of Virginia during the tax year.

Domicile: Your permanent legal home – the place you intend to return to indefinitely. You can have only one domicile at a time.

Actual Resident: Person who maintained a place of abode in Virginia and was present in Virginia for more than 183 days during the year, even if domiciled elsewhere.

Withholding: Tax deducted from your paycheck by your employer and sent to Virginia on your behalf.

Reciprocity: Agreement between Virginia and five other jurisdictions (Kentucky, DC, Maryland, West Virginia, Pennsylvania) where residents working across state lines may pay tax only to their state of residence under certain conditions.

Tax Credit: Dollar-for-dollar reduction in tax owed (e.g., $500 credit reduces tax by $500).

Tax Deduction: Reduces taxable income (e.g., $500 deduction reduces taxable income by $500, potentially saving $29-$57 depending on bracket).

Standard Deduction: Fixed dollar amount ($8,750 single, $17,500 married filing jointly for 2025) subtracted from income before calculating tax. Alternative to itemizing deductions.

Personal Exemption: Fixed amount ($930 for 2025) per person that reduces Virginia taxable income.

Filing Status: Category that determines standard deduction amount: Single, Married Filing Jointly, Married Filing Separately, or Head of Household.

Update History

This section documents all material changes to Virginia income tax information on this page.

February 2026 – Initial Publication for Tax Year 2025

  • Published comprehensive Virginia income tax guide for Tax Year 2025 (returns filed in 2026)
  • Documented standard deduction increase to $8,750 (single) and $17,500 (married filing jointly)
  • Documented refundable EITC increase from 15% to 20%
  • Documented military retirement pay subtraction increase to $40,000
  • All sections verified from official Virginia Department of Taxation sources
  • Source: Virginia Tax Bulletin; 2025 Form 760 Instructions; Virginia Code Title 58.1

January 2025 – Legislative Changes Effective for 2025 Returns

  • Standard deduction increased from $8,500/$17,000 to $8,750/$17,500
  • Refundable Virginia EITC increased from 15% to 20%
  • Historic Rehabilitation Tax Credit cap increased from $5 million to $7.5 million
  • Firearm Safety Device Credit expanded to include purchases from commercial retailers
  • Source: House Bill 854, Senate Bill 806 (2025 General Assembly Session)

Verification Schedule:

  • Annual Update: January (new tax rates and legislative changes)
  • Mid-Year Review: July (General Assembly enacted legislation effective July 1)
  • Continuous Monitoring: Emergency tax legislation, interest rate changes, administrative guidance
  • Source Link Check: Quarterly (all .gov URLs verified functional)

Last comprehensive update: February 16, 2026
Next scheduled review: January 2027 (for Tax Year 2026 updates)

Note: Virginia’s standard deduction increase is scheduled to sunset after Tax Year 2026 unless extended by future legislation. The deduction would revert to $3,000 (single) and $6,000 (married filing jointly) for Tax Year 2027.

Others

California
New York
Texas
Pennsylvania
Florida
New Jersey
Illinois
Ohio
Massachusetts
Arizona
Georgia
North Carolina
Washington

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current