Virginia Income Tax Structure

Virginia has a progressive income tax system with four tax brackets ranging from 2% to 5.75% for 2024. Virginia uses the same tax brackets for all filing statuses, but provides different standard deduction amounts based on filing status.

2024 Virginia Tax Brackets (all filing statuses):

• 2.0% on income between $0 and $3,000
• 3.0% on income between $3,001 and $5,000
• 5.0% on income between $5,001 and $17,000
• 5.75% on income over $17,001

Virginia Deductions and Exemptions

For 2024, Virginia offers the following standard deductions:

• Single: $8,000
• Married Filing Jointly: $16,000
• Head of Household: $8,000
• Married Filing Separately: $8,000

Virginia doubled its standard deduction amounts starting with the 2023 tax year. Virginia also provides a personal exemption of $930 for each taxpayer and dependent.

Virginia Tax Credits

Virginia offers several tax credits, including:

• Credit for Income Taxes Paid to Another State: For Virginia residents who earn income in and pay taxes to other states
• Credit for Low-Income Individuals: Reduces tax liability for eligible low-income households
• Child and Dependent Care Expenses Credit: Provides a credit for qualifying childcare expenses

Federal Income Tax

Federal income tax is based on federal tax brackets, your filing status, deductions, and W-4 allowances. Pre-tax deductions like 401(k) or HSA contributions reduce your federal taxable income.

FICA Taxes

FICA taxes fund Social Security and Medicare.

• Social Security: 6.2% on income up to $168,600 for 2024.
• Medicare: 1.45% on all income, with an additional 0.9% on income above certain thresholds.

Other Virginia Taxes

• Local Income Taxes: Most Virginia cities and counties levy a 1% local income tax that is collected through state tax returns.
• Sales Tax: Virginia has a 4.3% state sales tax, with an additional 1% local sales tax in most areas. Northern Virginia and Hampton Roads regions collect an additional 0.7% regional sales tax, bringing the total to 6% in those areas.
• Property Tax: Property taxes in Virginia are collected at the local level, with rates varying significantly by locality. The average effective property tax rate in Virginia is about 0.82% of property value.
• No Estate or Inheritance Tax: Virginia does not impose its own estate or inheritance tax.

Disclaimer: This information is for general guidance for the 2024 tax year and is not tax advice. Consult a tax professional for personalized advice.