State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

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.

Virginia

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The Bottom Line
Flag 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 modest, groceries are taxed, albeit at a lower rate.

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, including 1% that is allocated to local governments. Northern Virginia, Central Virginia, and the Hampton Roads area have an additional 0.7% sales tax to pay for transportation improvements. An additional 1% tax is levied in Halifax and Henry Counties, and an extra 1.7% tax is levied in the "Historic Triangle" area (City of Williamsburg, James City County, and York County). Effective July 1, 2021, an additional 1% tax will be levied in Charlotte, Gloucester, Northampton, and Patrick Counties. Overall, the additional taxes give the state an average combined state and local rate of 5.73%, 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 $804 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 29.4¢ per gallon (34.4¢ per gallon effective July 1, 2021).
Diesel: 28.5¢ per gallon (35.3¢ per gallon effective July 1, 2021).

Sin Taxes

Cigarettes: $0.60 per pack (some counties in Virginia add taxes of $0.50 to $0.85)
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.


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