State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2021

Virginia State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.


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The Bottom Line
Flag of Virginia

Mixed Tax Picture

The Old Dominion has higher-than-average income taxes and relatively low property taxes. Note that while the sales tax is on the low end, groceries are taxed, albeit at a reduced rate. All-in-all, Virginia offers a mixed bag when it comes to taxes on middle-income taxpayers.

Income Tax Range

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

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

Sales Tax

5.3% state levy, which includes a 1% tax allocated to local governments. Some local governments also impose additional taxes of up to 1.7%, making the average combined state and local rate 5.75%, according to the Tax Foundation.

Groceries: Taxable (1.5% state rate, plus 1% local tax)
Clothing: Taxable
Motor Vehicles: Exempt from ordinary sales tax, but taxable under special 4.15% excise tax.
Prescription Drugs: Exempt

Real Property Taxes

In Virginia, the median property tax rate is $815 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 34.4¢ per gallon.
Diesel: 35.3¢ per gallon.

Sin Taxes

Cigarettes: $0.60 per pack (additional local taxes may also apply)
Moist snuff: $0.36 per ounce
Heated tobacco products: $0.0225 per stick
Other tobacco products: 20% of the manufacturer's price, except "roll-your-own tobacco," which is 10%
Vapor products: $0.066 per ml

Beer: $0.26 per gallon
Wine: $1.51 per gallon
Liquor: $19.89 per gallon
Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation.

Marijuana: Effective July 1, 2023, 21% excise tax on retail sales, plus state and local sales tax; 3% local tax may also apply

Annual Car Taxes and Fees

An annual vehicle property tax based on the car's value is imposed. Localities assess vehicles and administer the tax.

Estate and Inheritance Taxes

No estate or inheritance tax.