Virginia state income tax
Virginia has a state income tax. It is graduated, with a top marginal rate of 5.75%. Graduated brackets: 2% up to $3,000; 3% on $3,001-$5,000; 5% on $5,001-$17,000; 5.75% over $17,000 (Code of Virginia 58.1-320, effective for tax years beginning on/after Jan 1, 1990, still current). These brackets are the same for all filing statuses, unlike the federal schedule, Virginia does not double the thresholds for married filing jointly, so the collector's parenthetical '(single filers)' was misleading. Capital gains are taxed as ordinary income (no special lower rate).
Does Virginia have a state income tax?
Yes. Virginia taxes individual income on a graduated schedule topping out at 5.75%. Graduated brackets: 2% up to $3,000; 3% on $3,001-$5,000; 5% on $5,001-$17,000; 5.75% over $17,000 (Code of Virginia 58.1-320, effective for tax years beginning on/after Jan 1, 1990, still current). These brackets are the same for all filing statuses, unlike the federal schedule, Virginia does not double the thresholds for married filing jointly, so the collector's parenthetical '(single filers)' was misleading.
| Item | Virginia |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 5.75% |
| Capital gains | Taxed as ordinary income, up to 5.75% |
| State sales tax | 4.3% (plus local) |
| Avg. property tax rate | 0.78% of home value |
| Estate / inheritance tax | None |
How does Virginia tax capital gains?
Virginia has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 5.75%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Virginia?
Retirement income is taxed differently from wages in many states. For how Virginia treats Social Security, pensions, and 401(k)/IRA withdrawals, see Virginia retirement taxes.
Sources
- Virginia income tax rates and brackets: Virginia Department of Revenue / Taxation.
- Virginia capital gains treatment: Virginia tax authority.
- Virginia sales tax: Virginia Department of Revenue.