Virginia state income tax looks simple on paper (four brackets that haven't changed since 1990), but the details decide what you actually owe: which subtractions you qualify for, whether you can claim the Spouse Tax Adjustment, how commuting to DC or Maryland is treated, and which deadlines apply. This guide walks a Virginia resident through the whole return, from federal adjusted gross income to the final number, using the rules in effect for 2025 and 2026 and the changes the 2026 General Assembly made for the years ahead.
Key takeaways
- Virginia taxes income at 2%, 3%, 5% and 5.75%. The top rate starts at just $17,000 of taxable income, for every filing status.
- The standard deduction is $8,750 (single) / $17,500 (joint) for 2025 and 2026. It rises to $9,200 / $18,400 in 2027 and $9,300 / $18,600 in 2028–2029.
- Social Security is fully exempt, and up to $40,000 of military retirement pay can be subtracted each year from 2025 on.
- The 2026 return is due Monday, May 3, 2027 (May 1 falls on a Saturday). You get an automatic extension to file, but at least 90% of the tax must be paid by the original due date.
- New for 2026: you only need Virginia estimated payments if you expect to owe more than $1,000 after withholding and credits (it used to be $150).
Who must file a Virginia income tax return
You must file if you are a Virginia resident, part-year resident or nonresident with Virginia income, you are required to file a federal return, and your Virginia adjusted gross income (VAGI) is at least $11,950 (single or married filing separately) or $23,900 (married filing jointly). If you fall below those amounts but had Virginia tax withheld, file anyway. It's the only way to get that money back.
Which form you use depends on your residency status:
- Resident (Form 760). You are a resident if Virginia is your legal home (domicile), or if you lived in or kept a place of abode in Virginia for more than 183 days of the year. Residents report income from all sources.
- Part-year resident (Form 760PY). You moved into or out of Virginia during the year intending to change your legal home. You prorate exemptions and the standard deduction and subtract income earned while you lived elsewhere.
- Nonresident (Form 763). You live elsewhere but earned Virginia-source income, such as wages for work done here or rent from Virginia property.
Married couples where one spouse is a Virginia resident and the other is not (common in military households) cannot file a joint Virginia return. The resident spouse files separately under filing status 3. Our military tax guide for Virginia families covers that situation in depth.
Virginia income tax rates and brackets
Virginia's rate schedule is set in Code of Virginia § 58.1-320 and is the same for single filers, married couples and heads of household. There is no separate bracket table for joint returns. Instead, couples who both earn income can claim the Spouse Tax Adjustment (more on that below).
| Virginia taxable income | Tax |
|---|---|
| $0 – $3,000 | 2% of taxable income |
| $3,001 – $5,000 | $60 + 3% of the amount over $3,000 |
| $5,001 – $17,000 | $120 + 5% of the amount over $5,000 |
| Over $17,000 | $720 + 5.75% of the amount over $17,000 |
A quick rule of thumb: if your Virginia taxable income is above $17,000, your tax is 5.75% of taxable income minus $257.50. That's the same math as the table ($720 − 5.75% × $17,000 = −$257.50), just faster to do in your head.
From federal AGI to Virginia taxable income
Virginia doesn't start from scratch. Line 1 of Form 760 is your federal adjusted gross income, so the federal return has to be finished first. From there you add a few items Virginia taxes that the IRS doesn't, subtract income Virginia exempts, then take deductions and exemptions.
The subtractions most Virginians use
- Social Security and Tier 1 Railroad Retirement benefits: fully exempt. Whatever was taxable federally comes back off.
- Age deduction: up to $12,000 per person age 65 or older. Anyone born on or before January 1, 1939 gets the full amount. For everyone else it shrinks $1 for every $1 of "adjusted federal AGI" (federal AGI minus taxable Social Security) above $50,000 single or $75,000 married. You can't claim it in the same year as the disability income subtraction.
- Military benefits: up to $40,000 of military retirement pay or Survivor Benefit Plan income per recipient for 2025 and later years. TSP withdrawals don't qualify.
- Military basic pay: up to $15,000, reduced dollar-for-dollar above $15,000 and gone at $30,000 of basic pay. It mostly helps junior enlisted members.
- State income tax refunds included in federal income, interest on U.S. Treasury obligations (savings bonds, T-bills), and unemployment compensation.
- Disability income (up to $20,000), Virginia National Guard pay (up to 39 days or $5,500, ranks O-6 and below), and Virginia Lottery prizes under $600.
Virginia standard deduction, itemizing and exemptions
Virginia ties your choice to the federal return: if you took the standard deduction federally, you take Virginia's standard deduction. If you itemized federally, you itemize on Virginia Schedule A, but you must remove the state and local income taxes you deducted. Virginia also keeps its own overall limitation on itemized deductions for higher earners.
| Tax year | Single / married filing separately | Married filing jointly |
|---|---|---|
| 2024 | $8,500 | $17,000 |
| 2025 and 2026 | $8,750 | $17,500 |
| 2027 | $9,200 | $18,400 |
| 2028 and 2029 | $9,300 | $18,600 |
| 2030 and later (unless extended) | $3,000 | $6,000 |
Exemptions and other Virginia deductions
- Personal and dependent exemptions: $930 each for you, your spouse and each dependent, plus an extra $800 if you are 65 or older or blind.
- Virginia529 contributions: up to $4,000 per account per year, with unlimited carryforward. Account owners age 70 or older can deduct the full amount in one year.
- Child and dependent care: the expenses used for the federal credit (up to $3,000 for one dependent, $6,000 for two or more), not the credit itself. This is one of the most common mistakes we see.
- Eligible educator expenses: up to $500, reinstated starting with 2026 returns after lapsing for 2025.
- Long-term care insurance premiums not deducted federally, a $1,000 foster care deduction per child, and the difference between 18¢ and the federal charitable mileage rate.
Virginia tax credits worth knowing
Credits reduce tax dollar-for-dollar. Lower-income households get to choose one of three:
- Refundable Virginia Earned Income Tax Credit: 20% of your federal EITC, paid out even if it exceeds your Virginia tax. The 2026 budget extended the refundable version through tax year 2029. Nonresidents and part-year residents can't claim the refundable version.
- Non-refundable Virginia EITC: also 20% of the federal credit, but capped at your tax.
- Credit for Low-Income Individuals: $300 per personal exemption if family VAGI is below the federal poverty guidelines, capped at your tax.
None of the three is available if anyone on the return claims the military basic pay subtraction, the Virginia National Guard subtraction, the $15,000 federal/state employee subtraction, the age deduction, or the extra exemption for age or blindness.
Spouse Tax Adjustment. Because joint filers share one bracket schedule, couples where both spouses have income can cut their tax by up to $259. If each spouse's VAGI minus their own exemptions is over $17,000 and joint taxable income is over $34,000, you simply take the full $259.
Credit for taxes paid to another state (Schedule OSC). If you earn income taxed by a state without a reciprocity agreement, Virginia generally credits the tax you paid there so you aren't taxed twice.
Have a question about your situation?
Our team can look at your numbers and tell you exactly where you stand — in person in Fredericksburg or remotely from anywhere.
Worked example: a Spotsylvania family's 2026 Virginia tax
Commuters: DC, Maryland and other states
Virginia has reciprocity agreements with the District of Columbia, Maryland, Pennsylvania, West Virginia and Kentucky. If you qualify, only your home state taxes your wages.
- Virginia residents working in DC who don't establish DC residency pay income tax only to Virginia. (The DC unincorporated business franchise tax is a separate matter.)
- Virginia residents working in Maryland, Pennsylvania or West Virginia are exempt there if they are present in that state 183 days or less, keep no home there, and earn only wages there.
- Kentucky: applies to daily commuters with only wage or salary income.
- Residents of those states working in Virginia give their Virginia employer Form VA-4 each year to stop Virginia withholding. If Virginia tax was withheld anyway, they file Form 763-S to get it back.
If you work in a state without reciprocity, you'll generally file a nonresident return there and claim a credit on your Virginia return. If you moved to or from Virginia during the year, Form 760PY lets you report only the income from your Virginia months.
Deadlines, extensions, payments and penalties
| What | Date |
|---|---|
| 2026 estimated payments | May 1, 2026 · June 15, 2026 · Sept. 15, 2026 · Jan. 15, 2027 |
| Return due (and full payment) | Monday, May 3, 2027 (May 1 is a Saturday) |
| Automatic extension to file | November 1, 2027. You don't need to apply, but 90% of the tax must be paid by the original due date |
| Stationed or living outside the U.S. on the due date | July 1 ("Overseas Rule"). For non-military filers abroad, payment is still due by the original date |
Paying. Pay through your Virginia Tax individual online account or the free eForms (no login), by ACH credit, or with Form 760-PMT. Use Form 760IP for an extension payment. Once any single payment exceeds $1,500, or your annual liability exceeds $6,000, Virginia requires all future payments to be made electronically.
Penalties and interest. If you file on extension but pay less than 90% by the due date, an extension penalty of 2% per month (12% maximum) applies to the balance. Filing more than six months late brings a 30% late-filing penalty, and late payment runs 6% per month up to 30%. Interest is charged at the federal underpayment rate plus two percentage points. If you can't pay in full, Virginia offers payment plans, and our tax resolution service can help you set one up.
Estimated taxes. For 2026 and later, you need Virginia estimated payments if you expect your tax after withholding and credits to be more than $1,000. Virginia's safe harbor is 90% of the current year's tax or 100% of last year's, with no higher percentage for high earners. Our guide to quarterly estimated taxes walks through the math, and the full calendar is in our 2026–2027 federal and Virginia deadline guide.
Refunds. E-filing with direct deposit is the fastest route. Track yours with the "Where's My Refund?" tool on tax.virginia.gov. Virginia can hold back or reduce a refund to cover debts you owe to other Virginia agencies or localities.
Virginia state income tax changes for 2025, 2026 and beyond
- Standard deduction stays at $8,750 / $17,500 for 2026, then rises for 2027–2029 (table above).
- Refundable EITC at 20% of the federal credit is extended through tax year 2029. It had been set to expire after 2026.
- Federal conformity: Virginia now conforms to the Internal Revenue Code as of December 31, 2025, which picks up most of the federal changes that affect AGI. It still keeps its own limit on itemized deductions and does not follow federal bonus depreciation or the new immediate expensing rules for businesses.
- Educator expense deduction of up to $500 is back for 2026.
- Estimated tax threshold rises from $150 to $1,000 starting with 2026.
- Military retirement subtraction reached its full $40,000 in 2025 and stays there for 2026.
- Free direct e-file: Virginia Tax must offer a free state e-file program starting with tax year 2028.
If your return involves more than one state, rental property, a business, or retirement income, it's worth having it prepared together with the federal return so the subtractions and credits line up. That's what our tax preparation service does for Fredericksburg-area families every season.
Frequently asked questions
What is the Virginia state income tax rate?
Virginia uses four brackets for every filing status: 2% on the first $3,000 of taxable income, 3% on $3,001–$5,000, 5% on $5,001–$17,000 and 5.75% on everything over $17,000. Tax on the first $17,000 is $720, so most working households pay 5.75% on most of their income.
What is the Virginia standard deduction for 2026?
For tax year 2026 it is $8,750 for single filers and married filing separately, and $17,500 for married couples filing jointly. The 2026 budget raises it to $9,200 / $18,400 for 2027 and $9,300 / $18,600 for 2028 and 2029.
Does Virginia tax Social Security benefits?
No. Virginia fully exempts Social Security and Tier 1 Railroad Retirement benefits. If any of your benefits were taxable on your federal return, you subtract that amount on your Virginia return.
When is the Virginia income tax return due for tax year 2026?
Virginia returns are normally due May 1. Because May 1, 2027 is a Saturday, the 2026 return is due the next business day, Monday, May 3, 2027. Virginia gives an automatic six-month extension to file, but not to pay: at least 90% of your tax must be paid by the original due date.
I live in Virginia and work in Washington, DC. Which state do I pay?
Virginia. Under reciprocity, Virginia residents who work in DC but do not establish DC residency pay individual income tax only to Virginia. Give your employer DC's withholding exemption form so it withholds Virginia tax instead.
Do I have to make Virginia estimated tax payments?
Starting with tax year 2026, you must make Virginia estimated payments (or increase withholding) if you expect your Virginia tax, after withholding and credits, to be more than $1,000. For earlier years the threshold was $150.
Want a professional to handle it?
Book an appointment with Timeless Tax & Accounting. We prepare federal and state returns for individuals, families, businesses and corporations across Virginia and in other states, in English or Arabic.
Written by the Timeless Tax & Accounting teamTimeless Tax & Accounting was founded in 2020 by Nagham Alobaidi and serves clients across Virginia and in other states, in English and Arabic. Reviewed for accuracy against IRS and Virginia Tax guidance as of October 2, 2026.
Sources
- Virginia Tax — Who Must File
- Virginia Tax — Residency Status
- Virginia Tax — Subtractions
- Virginia Tax — Deductions
- Virginia Tax — Exemptions
- Virginia Tax — Virginia EITC & Credit for Low Income Individuals
- Virginia Tax — Reciprocity
- Virginia Tax — When to File
- Virginia Tax — Penalties and Interest
- Virginia Tax — Individual Estimated Tax Payments
- Virginia Tax — New Virginia Tax Laws (2026 session)
- Virginia Tax — 2026 Legislative Summary (PDF)
- Virginia Tax — 2025 Form 760 Resident Instructions (PDF)
- Virginia Tax — 2026 Form 760ES Instructions (PDF)
- Code of Virginia § 58.1-320 — Tax rates
- 2026 Appropriation Act (HB 30, Special Session I, Chapter 1)
This page is general information, not tax, legal or financial advice for your specific situation. Tax rules change often — talk with a professional before acting.
