Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

Virginia

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The Bottom Line
Map of Virginia

Mixed Tax Picture

The Old Dominion has middle-of-the-road income taxes and relatively low property taxes. Note that while the sales tax is low, groceries are taxed.

Sales Tax

5.3% state levy, including 1% that is allocated to local governments. Northern Virginia and the Hampton Roads area have an additonal 0.7% sales tax to pay for transportation improvements, giving the state an average of 5.63%. Food is taxed at 2.5%. statewide; nonprescription drugs are exempt.

Income Tax Range

Low: 2% (on up to $3,000 of taxable income)

High: 5.75% (on taxable income over $17,000)

Federal income tax can be deducted.

See Kiplinger.com’s Retiree Tax Map to learn how Virginia taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.22 per gallon..
Diesel: $0.26 per gallon..

Property Taxes

The median property tax on Virginia's median home value of $247,800 is $1,956.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in Virginia.

Vehicle Taxes

A 4.1% "motor vehicle tax" applies to purchases. This tax is scheduled to rise 0.05% to 4.15% in July 2016.

Vehicles are also subject to an annual vehicle personal property tax. Localities assess vehicles and administer the tax. For example, the current tax rate for vehicles in Fairfax County is $4.57 for each $100 of assessed value. Depending on the county, city or town where the vehicle is assessed, people 65 and older and disabled individuals who meet income requirements may be eligible for tax relief. There’s also tax relief available for owners of cars assessed at lower values, which is determined by the locality.

Sin Taxes

Beer: $0.26 per gallon
Wine: $1.51 per gallon
Liquor: $19.19 per gallon. Virginia directly controls the distribution and sale of alcohol. Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation
Cigarettes: $0.30 per pack
Moist snuff: $0.18 per ounce
Loose leaf tobacco: Variety of prices per ounce (example: $0.21 for a package of 4 ounces or smaller)
Other tobacco products: 10% of the wholesale price

Travel Taxes

Hotel: A variety of lodging taxes are in place, including a 2% transient tax statewide. In 2014 the state added an additional 0.3% sales tax for lodging. Northern Virginia adds another 2% for transportation funding. Localities add their own taxes, ranging from 2% to 5%.

Rental cars: 10%. Sales tax is not levied.

Taxes On Wireless Service

6.6%

Inheritance and Estate Taxes

There is no inheritance tax or estate tax.

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