Virginia Tax Guide: Progressive Brackets & Filing

Tax Overview

Virginia uses a progressive income tax system with four brackets, reaching a top rate of 5.75% on income above $17,000. This relatively low threshold for the top bracket means that most working Virginians pay near the maximum rate. The state has not significantly changed its bracket structure in many years, though there have been discussions about reform.

Sales tax in Virginia is relatively low, with a state rate of 4.3% plus a mandatory 1% local tax, creating a minimum combined rate of 5.3%. Some regions have additional local taxes for transportation funding, pushing rates to 6% or higher in Northern Virginia and Hampton Roads. Virginia exempts groceries from the 4.3% state rate but applies a reduced 1% state rate plus the 1% local rate, resulting in a 2.5% tax on food.

Property taxes in Virginia are locally administered and vary significantly, with effective rates averaging about 0.82% statewide. Northern Virginia (Fairfax, Arlington, Loudoun) and the Richmond area tend to have the highest property values and thus the highest dollar amounts, though rates are moderate. Virginia offers property tax relief for seniors and disabled individuals, as well as a homestead exemption that varies by locality.