Virginia Income Tax Calculator

Understanding Virginia Income Tax

Virginia operates a progressive income tax system with four tax brackets ranging from 2% to 5.75%. The state's tax structure is simpler than larger states like California or New York, but more complex than flat-tax states like North Carolina or Michigan.

Virginia Tax Brackets for 2026

Virginia applies the same tax brackets to all filing statuses (single, married, head of household):

Taxable Income Range	Tax Rate	Tax Owed on Bracket
$0 - $3,000	2%	Up to $60
$3,001 - $5,000	3%	$60 + 3% of amount over $3,000
$5,001 - $17,000	5%	$120 + 5% of amount over $5,000
$17,001+	5.75%	$720 + 5.75% of amount over $17,000

Standard Deduction

Virginia offers a standard deduction to reduce your taxable income:

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

Age 65+ Deduction

If you're 65 or older, Virginia allows an additional deduction of up to $12,000 for retirement income (excluding Social Security). This applies to pensions, 401(k) distributions, and IRA withdrawals. The deduction phases out for higher earners:

• Full $12,000 if AGI is $50,000 or less (single) or $75,000 or less (married)
• Reduced by $1 for every $1 of AGI above these thresholds
• Example: Single filer with $60,000 AGI gets $2,000 deduction ($12,000 - $10,000 phase-out)

Key Features of Virginia Tax System

• No Local Income Taxes: Unlike Maryland or Ohio, Virginia has no county or city income taxes. You only pay state and federal.
• No Social Security Tax: Virginia does not tax Social Security benefits, making it more attractive for retirees.
• Top Rate at $17,000: The 5.75% top rate kicks in quickly, meaning most middle-income earners pay the top marginal rate on the bulk of their income.
• Military-Friendly: Up to $15,000 of military retirement pay is exempt (in addition to the age 65+ deduction).
• Itemizing: You can itemize on your Virginia return if you itemize federally, but you must use the same method for both.

Virginia vs. Neighboring States: Tax Comparison

How does Virginia's income tax stack up against surrounding states?

The Region

State	Tax Structure	Top Rate
Virginia	Progressive (4 brackets)	5.75% (over $17,000)
Maryland	Progressive (8 brackets) + county taxes	5.75% state + up to 3.2% local = 8.95% combined
North Carolina	Flat tax	4.75%
West Virginia	Progressive (5 brackets)	6.5% (over $60,000)
Tennessee	No income tax	0%
Kentucky	Flat tax	4.5%

Takeaway: Virginia's 5.75% top rate is competitive. It's lower than Maryland (especially with local taxes), higher than Tennessee (0%), and comparable to North Carolina (4.75%) and Kentucky (4.5%). The key advantage is no local income taxes — a $75,000 earner in Fairfax, VA pays the same state tax as someone in rural Virginia, whereas Maryland residents face state + county taxes.

Moving to Virginia? Tax Considerations

Many people relocate to Northern Virginia for federal jobs or to Richmond/Virginia Beach for lower costs. Here's what to know:

• DC Commuters: If you live in VA and work in DC, you pay VA tax on all income (DC doesn't tax non-residents' wages). If you live in DC and work in VA, you pay DC tax.
• Maryland Comparison: A $100,000 earner in Northern VA pays ~$4,700 in state tax. The same earner in Montgomery County, MD pays ~$7,000 (state + local). That's $2,300/year savings.
• Residency Rules: You're a Virginia resident if you live in the state for 183+ days or maintain a permanent home in VA.
• Part-Year Filing: If you move mid-year, file part-year returns for both states, allocating income by residency period.

Tax Planning Strategies for Virginia Residents

1. Maximize Retirement Contributions

Contributions to traditional 401(k)s and IRAs reduce your Virginia taxable income. For 2026:

• 401(k): Up to $23,000 ($30,000 if age 50+)
• IRA: Up to $7,000 ($8,000 if age 50+)

At the 5.75% Virginia rate, a $23,000 401(k) contribution saves about $1,322 in state tax (plus federal savings of ~$5,060 at 22% bracket = $6,382 total).

2. Claim the Age 65+ Deduction

If you're 65 or older with retirement income under the AGI limits, claim the full $12,000 deduction. This saves $690/year in state tax (5.75% × $12,000). Married couples can each claim it if both are 65+, doubling the benefit to $1,380.

3. Consider Roth Conversions in Low-Income Years

If you have a year with unusually low income (career transition, sabbatical), consider converting traditional IRA funds to Roth. You'll pay tax now at a lower rate, but future Roth withdrawals are tax-free at both federal and state levels.

4. Itemize if It Exceeds Standard Deduction

Virginia's standard deduction is $8,000 (single) or $16,000 (married). If your federal itemized deductions exceed these amounts, you may save on state tax by itemizing. Common deductions:

• Mortgage interest (limited to interest on $750,000 of debt)
• State and local taxes (SALT) — but capped at $10,000 federally
• Charitable contributions
• Medical expenses exceeding 7.5% of AGI

5. Take Advantage of Virginia 529 Plan

Virginia offers a state tax deduction for contributions to its 529 college savings plan (Virginia529 or CollegeAmerica). You can deduct up to $4,000 per account per year (unlimited accounts). At 5.75%, a $4,000 contribution saves $230 in state tax. Plus, withdrawals for qualified education expenses are tax-free.

6. Military Retirement Subtraction

If you receive military retirement pay, you can subtract up to $15,000 from your Virginia taxable income, regardless of age. This is separate from the age 65+ deduction, so a 70-year-old veteran could potentially deduct $15,000 (military) + $12,000 (age 65+) = $27,000 of retirement income.

Frequently Asked Questions

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