Virginia State Taxes: What You’ll Pay in the 2026 Tax Season

Virginia has four progressive tax brackets that have been steady for three decades and are not adjusted for inflation. The top income tax rate is higher than many neighboring states, including Kentucky, North Carolina, Tennessee and West Virginia, according to the Tax Foundation.

The big picture:

• Income tax: The state has a progressive tax with four brackets, ranging from 2 percent on income $3,000 and under to 5.75 percent on anything over $17,000 plus $720.
• Property tax: The effective property tax is 0.78 percent of a home’s assessed value, according to the Tax Foundation. Actual rates vary by county or cities that are considered county equivalents, according to the latest data from the Tax Foundation.
• Sales tax: Virginia has a combined average local and statewide sales tax of 5.77 percent, although it varies by county and city, according to the Tax Foundation. The statewide rate is 5.3 percent, while local taxes average 0.47 percent and go as high as 2.7 percent.

How is income taxed?

The state has a progressive tax with four brackets:

Virginia does not use different tax brackets based on filing status (single vs. married and filing jointly), although the state provides a spousal tax adjustment to married taxpayers when both taxpayers have taxable income. This allows couples to file joint returns without paying higher taxes, as opposed to filing separately. The adjustment can be calculated here.

What about investment income?

Investment income is taxed as regular income in Virginia.

Are Social Security benefits taxed?

Virginia does not tax Social Security income.

How is property taxed?

The effective property tax is 0.78 percent of a home’s assessed value. The actual rate residents pay varies by county or cities that are considered county equivalents, ranging from 0.4 percent in Brunswick and Lunenburg counties to 1.15 percent in the city of Falls Church. The median rates paid range from $413 in Buchanan County to more than $10,000 in Falls Church.

What about sales and other taxes?

• Sales tax: Virginia has a combined average local and statewide sales tax of 5.77 percent, though it varies by county and city, according to the Tax Foundation. The statewide rate is 5.3 percent, while local taxes average at 0.47 percent and go as high as 2.7 percent. Local sales tax rates are available here. Exemptions include newspapers and magazines, prescription drugs and medical supplies, and residential heating fuels. A full list of exemptions is available here.
• Gas and diesel: Gasoline is taxed at 31.7 cents per gallon. Diesel is taxed at 32.7 cents per gallon.
• Vehicle tax: Virginia imposes a sales tax of 4.15 percent of a vehicle’s gross purchase price. Additionally, vehicles are subject to an annual personal property tax at the city and county level. The tax rate varies by the local government where the car is parked overnight and is based on a percentage of the vehicle’s value. The most recent local tax rates available from the state can be found here.
• Alcohol: In Virginia, retail prices of distilled spirits include a 20 percent state tax. Wine retail prices include a 4 percent state tax and 40 cents per liter of wine tax. Cities and counties impose their own local sales tax rates as well, which range from 5.3 percent to 7 percent. Rates by local jurisdiction can be found here.
• Lottery: Lottery winnings in Virginia are taxed as regular income, except for prizes less than $600. However, state law requires the state lottery agency to withhold 4 percent on winnings of $5,000 or more for state taxes and 24 percent for federal taxes.

Will my heirs or estate have to pay inheritance or estate taxes?

No, Virginia does not have an inheritance or estate tax.

Are there any tax breaks for older residents?

• Age deduction: Residents who were born on or before Jan. 1, 1939, may qualify for an age deduction of up to $12,000. For married couples, spouses may be eligible if they each meet the age requirement. Anyone born on that date up through Jan. 1, 1960, can receive a deduction based on their federal adjusted gross income. Their deduction is reduced by $1 for every $1 that the taxpayer’s federal adjusted gross income exceeds $50,000 for single taxpayers or $75,000 for married taxpayers. An age deduction calculator is available here.
• Additional personal exemption: Virginia allows an exemption of $800 for residents who are 65 and older.

Are military pensions taxed?

Military retirement income received for service in the U.S. armed forces can receive a $40,000 subtraction on their income taxes. A surviving spouse of a U.S. veteran can receive the same subtraction.

What is the deadline for filing taxes in 2026?

The deadline for filing your 2025 state tax return is May 1, 2026, while federal taxes are due April 15.

 

More AARP Financial Resources

• AARP Retirement Calculator Determine if you are saving enough to retire when — and how — you want.
• AARP’s Social Security Calculator Figure out when to claim and how to maximize your Social Security benefits.
• AARP Tax Tools Explore resources to help you calculate and prepare taxes.