Virginia State Taxes: Everything You Need to Know
The total taxes paid in Virginia are higher than in most other states. A 2018 GOBankingRates study found that the average Virginian will pay over $13,000 in taxes each year, or about 20.55 percent of their annual income. That amount is spread out across federal income taxes, state income taxes, gas taxes, sales taxes and property taxes.
Here’s a closer look at Virginia’s tax rates and how they might affect you.
| Virginia State Taxes | |
| Rate Range of Taxes | 0% to 14.12% |
| Sales Tax Rate Range | 5.3% to 7% |
| Income Tax Rate Range | 2% to 5.75% |
| Inheritance and Estate Tax Rate Range | 0% |
| Property Tax Rate Range | 0.42% to 1.37% |
Virginia State Personal Income Tax
Virginia levies a state income tax on all income earners, no matter how low their annual income is. Although there are four income tax brackets, the highest bracket includes everyone earning $17,000 or more. The highest bracket is charged at an income tax rate of 5.75 percent. Keep in mind that this is just the state income tax — Virginians have to pay a federal income tax as well.
Here’s a look at the Virginia income tax brackets:
| Virginia Income Tax Rates | |
| Income Tax Bracket | Tax Rate |
| $0-$3,000 | 2% |
| $3,000-$5,000 | 3% |
| $5,000-$17,000 | 5% |
| $17,000 or more | 5.75% |
Find Out: 7 States With No Income Tax
Virginia State Sales Tax
| Virginia Sales Tax | |
| Virginia Sales Tax Rate | 5.3% |
The general sales tax rate in Virginia is 5.3 percent statewide, though it is slightly higher in three areas:
- Hampton Roads, which includes the cities of Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk and Virginia Beach, and the counties of Isle of Wight and Southampton
- Northern Virginia, which includes the cities of Alexandria, Fairfax, Falls Church, Manassas and Manassas Park, and the counties of Arlington, Fairfax, Loudoun and Prince William
- Historic Triangle, which includes the city of Williamsburg, and the counties of James City and York
Here are the sales tax rates in these areas:
| Local Sales Taxes in Virginia | |
| Area | Tax Rate |
| Hampton Roads | 6% |
| Northern Virginia | 6% |
| Historic Triangle | 7% |
The Virginia sales tax applies to all sales, leases and rentals of tangible personal property in or for use in Virginia, as well as accommodations and certain services. Aircraft, watercraft and motor vehicles are taxed at different rates. Food for home consumption is also taxed, but at a lower rate: 2.5 percent. That rate is the same across the entire state.
Read: The Most (and Least) Tax-Friendly Major Cities in America
Virginia Property Tax
Virginia property taxes vary by county, but the effective state property tax is 0.797 percent. But, property values are high in Virginia, so residents might still have to pay a large amount for property taxes.
Virginia Inheritance Tax and Estate Tax
Inheritance tax and estate tax refer to the taxes you must pay on property you receive from someone who is deceased. Like most states, Virginia does not have an estate tax. The state eliminated its estate tax in July 2007. Formerly, this tax was equal to the federal credit for state death taxes. Once the federal credit was eliminated, the Virginia estate tax was effectively repealed. However, it’s important to note that certain remainder interests are still subject to an inheritance tax.
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