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Tips & tools
A tax tip a day plus an array of tax tools, terms and training will help you through filing and beyond. |
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Virginia
Virginia's tax rates range from 2 percent to 5.75 percent and are assessed over four income tax brackets. More on Virginia taxes can be found in the tabbed pages below.
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Income |
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Sales |
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Property |
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Estate |
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Other |
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| Personal income tax |
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Virginia's income tax rates are assessed over five tax brackets:
-- 2 percent on the first $3,000 of taxable income.
-- 3 percent on taxable income between $3,001 and $5,000.
-- 5 percent on taxable income between $5,001 and $17,000.
-- 5.75 percent on taxable
income of $17,001 and
above.
For married persons filing joint returns, the rates remain the same but the income brackets are doubled. |
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Virginia residents must file Form
760 (Resident Income Tax Return) by May 1. |
| Forms
and instructions are available for downloading at the Virginia
Department of Taxation Web site. |
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| Sales tax |
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Virginia's
state sales and use tax rate is 4 percent. |
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There
is an additional 1 percent
local tax, for a total
of a 5 percent combined
sales tax on most Virginia
purchases. |
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On July 1, 2005, the state tax rate
on food decreased to 1.5 percent, resulting in a combined tax
rate of 2.5 percent (1.5 percent state tax and 1 percent local
tax). |
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The state's consumer use tax is the "other half" of the Virginia retail sales and use tax requirements. Typically, residents incur the use tax when they purchase in a tax year more than $100 worth of items upon which they did not pay sales tax. Common instances of these types of transactions are purchases from the Internet, mail-order catalogues and cable television shopping channels. The tax also applies to tax-free purchases you make outside of Virginia, such as buying furniture at an outlet in another state and having it shipped to Virginia. |
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| Personal and real property taxes |
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Virginia has no state property
tax. The tax is set and collected at the local government level. |
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Real
estate is taxed at the local
level based on 100 percent
of fair market value. Effective
true tax rates on real estate
vary and are set by locality. |
| Tangible personal property also
is taxed at the local level and is based on a percentage or
percentages of original cost. |
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Tangible
personal property includes,
but is not limited to, machinery
and equipment, furniture,
fixtures and trucks and automobiles.
Residents must file Form
762, Return of Tangible
Personal Property, Machinery
and Tools, and Merchants'
Capital, by May 1. |
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Click
here for contact information for the personal property tax
assessment and collection agencies across Virginia. |
| Inheritance and estate taxes |
| Virginia does not collect inheritance
taxes. |
| | Virginia's estate tax was decoupled
from the federal estate tax laws and the state imposed
its own estate
tax through June 30, 2007. |
| | However, on July 1, 2007, House Bill 5018 took effect and repealed the Virginia estate tax for the estates of decedents whose date of death occurs on or after the effective date. The estates of decedents whose date of death occurs before July 1, 2007 remain subject to the estate tax provisions. |
| | The repeal of the Virginia estate tax does not affect the filing requirements for fiduciary income tax, regardless of when the date of death occurs. |
| Other Virginia tax facts |
| Virginia taxpayers can electronically request an extension to file. Once they do file, if they are getting refunds, they also can check that status online. Information on other electronic tax options can be found at VATAX Online. |
| The Virginia Department of Taxation publishes online the names of businesses with unresolved tax liabilities. Before posting the names, the department gives the business a chance to voluntarily settle its tax debts. |
| An annual Litter Tax is imposed on all Virginia businesses that were in operation on Jan. 1 of the tax year. The tax is $10 per year for each location of manufacturers, wholesalers, distributors or retailers of consumer products and an additional $15 per year per location where groceries, soft drinks and beer are sold. The tax revenues are deposited in the interest-earning Litter Control and Recycling Trust Fund. |
| The Virginia General Assembly exempted
intangible personal property from taxation in 1984 by making
the tax rate zero. |
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| For more information, contact the
Virginia Department of Taxation at (804) 367-8031 and at the Web
site. Virginia also provides recorded tax information through
the toll-free TeleTax number at (888) 268-2829. |
| To download
tax forms on this site, you will need to install a free copy
of Adobe Acrobat Reader. Click here for instructions. |
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