Virginia State Taxes
Quick Tax Facts
Income Tax: 2% – 5.75%
State Sales Tax: 5.3%
Median Property Tax: $3,629
Overview
Virginia is teeming with history. Several founding fathers and presidents were born and raised in the state. It’s also where America won her independence in 1781 when the British surrendered in Yorktown. Virginia is also a large military state with 27 active bases. Unfortunately, it can be an expensive place to live. The cost of living is very high, as are the income taxes. Property taxes and sales taxes fall more in the middle.
Virginia Income Tax
Virginia has a progressive income tax rate that ranges between 2% and 5.75%, depending on your residency status and taxable income.
| Virginia (VA) Income Tax Rates |
|---|
| If your VA taxable income is over | But not over | Your tax is | On income over |
|---|---|---|---|
| $3,000 | 2% | $0 | |
| $3,000 | $5,000 | $60 plus 3% | $3,000 |
| $5,000 | $17,000 | $120 plus 5% | $5,000 |
| $17,000 | $720 plus 5.75% | $17,000 |
Who Must File?
Full-year, part-year, and non-residents who are required to file a federal income tax return and have Virginia adjusted gross income equal to greater than the amounts indicated in the chart below are required to file a Virginia income tax return.
| Filing Status | Income Threshold |
|---|---|
| Single or Married Filing Separately | $11,950 |
| Married Filing Jointly | $23,900 |
Residents should file Form 760. Part-year residents generally file Form 760PY and non-residents use Form 763.
Reciprocity
Virginia has reciprocity with five states, including Kentucky, Maryland, Pennsylvania, West Virginia, and the District of Columbia (DC). Residents of Kentucky and DC who commute to Virginia for work (wage and salary only) are exempt from Virginia income taxes. Those residing in Maryland, Pennsylvania, or West Virginia are exempt from Virginia income taxes if:
- They are taxed by their home state, and
- Are present in VA for 183 days or less, and
- Don’t maintain a home (house, apartment, etc.) in VA, and
- Receive only wage or salary income in the state.
Virginia Sales Tax
Virginia has a state sales tax rate of 5.3%, which includes a mandatory 1% local tax. Local governments, however, may levy up to an additional 1.7% in sales taxes. The highest rates are in James City County, Williamsburg, and York County (7%). Most locations in the state have a sales tax rate of 5.3%. The state sales tax rate for food and personal hygiene items is 1%.
Virginia Property Taxes
Virginia’s property tax rates are average when compared with other states. Property taxes are assessed and collected at the local level. The median property tax in Virginia is $3,629. Fairfax County has the highest average property tax at $6,843, while Buchanan County has the lowest at $415.
| Highest | $6843 |
|---|---|
| Median | $3629 |
| Lowest | $415 |
Yearly Cost Per Resident
Virginia Tax Holidays
Virginia combines its three sales tax holidays into one 3-day tax-free weekend that starts the first Friday in August at 12:01 am and ends the following Sunday at 11:59 pm. Eligible items include school supplies ($20 or less per item), clothing ($100 or less per item), hurricane preparedness products, and Energy Star or WaterSense products ($2,500 or less).
Virginia Tax Relief
Falling behind on your Virginia income taxes can put added pressure on your finances, especially as penalties and interest increase your balance over time. The Virginia Department of Taxation (Virginia Tax) has the authority to pursue collection efforts when tax obligations remain unpaid. Whether you’re struggling with unfiled returns, unexpected financial difficulties, or outstanding business taxes, addressing the issue promptly may help prevent more serious collection problems.
If you’re unable to pay your Virginia tax bill in full, there may be several ways to work toward resolving your debt. Depending on your financial circumstances and eligibility, you may be able to establish a payment plan, submit an Offer in Compromise, or explore other available tax relief options. Taking action before collection efforts escalate may also help you avoid or address enforcement measures such as tax liens, wage garnishments, and bank levies.
Understanding Virginia’s tax collection procedures and the relief options available can help you make informed decisions about your next steps. By exploring potential solutions and addressing your outstanding balance, you can work toward resolving your Virginia tax debt and bringing your account back into good standing.
Common Virginia State Tax Problems
Back Taxes
If you owe unpaid Virginia taxes, addressing your balance early may help you avoid additional penalties and collection actions.
Unfiled Tax Returns
Filing past-due Virginia tax returns is often the first step toward resolving your state tax issues.
Tax Notices
Notices from the VA Department of Taxation shouldn’t be ignored, as they often require prompt action to prevent further collections.
Liens & Levies
Unresolved tax debt may lead to liens against your property or levies on your assets as the state works to collect what is owed.
Garnishment
Virginia may garnish your wages to collect unpaid taxes, reducing the amount of each paycheck you receive.
Tax Penalties
Unpaid taxes can continue to accrue penalties and interest until your balance is resolved.
How Virginia Collects Tax Debt
If you don’t pay your Virginia taxes within 30 days of receiving a tax bill, the state may take collection actions, such as:
- Wage levies
- Bank levies
- Memorandum of lien
- Referral to an outside collection agency
Tax Bill sent to taxpayer
Memorandum of Lien filed
Collection actions begin
Virginia State Tax Relief Options
Virginia offers several tax relief options, including:
- Payment Plans – If you can’t pay in full, you may be able to pay off your tax debt through a payment plan.
- Offer in Compromise – Virginia may accept an Offer in Compromise if you are facing economic hardship, or there is a Doubt as to Liability or Collectibility.
If you’re experiencing financial hardship and can’t pay your Virginia income tax bill, contact the Department of Taxation as soon as possible to discuss your options.
When to Seek Tax Relief Help
If you’re experiencing any of the following, it may be time to explore your tax relief options:
You’re Receiving Collection Notices
Ignoring Virginia tax notices can lead to more serious collection actions, so it’s often best to address the issue early.
You Can’t Afford to Pay Your Taxes
If paying your Virginia state tax bill in full isn’t realistic, there may be payment or resolution options available.
Collection Actions Have Started
If you’re facing wage garnishments, bank levies, or tax liens, professional guidance may help you understand your options.
The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.
Virginia Tax Relief FAQs
Virginia Tax Resources
If you need assistance preparing your Virginia state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Virginia Department of Taxation website for additional resources.
- Customer Contact Center: 804-367-8031
- Where’s My Refund?
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- Forms & Instructions
