Virginia State Tax Guide
Virginia state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.
Virginia state tax: Overview
Income taxes in Virginia can be a bit higher than the national average for some residents.
However, sales tax rates in Virginia are fairly low. Virginia's average combined state and local sales tax rate is 5.75%. The statewide median property tax rate is generally below average, too.
Virginia does not tax Social Security benefits. Railroad Retirement benefits are also exempt.
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[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Virginia Income Taxes
Virginia Income Tax Range
Income tax rates for 2023 in Virginia range from 2% to 5.75%.
Virginia Tax Breaks for Other Retirement Income
In addition, Virginia taxpayers age 65 and older can generally claim a deduction of up to $12,000. If you were born on or after January 2, 1939, the amount of the deduction is based on your income.
Virginia sales tax
Virginia's sales tax is 5.30%. The average local sales tax rate is 0.45%, making the average combined state and local rate 5.75%, according to the Tax Foundation.
- Groceries: Taxable (1% state rate; local rates may apply)
- Clothing: Taxable
- Motor Vehicles: Exempt from ordinary sales tax, but taxable under special 4.15% excise tax.
- Prescription Drugs: Exempt
How much is property tax in Virginia?
In Virginia, the median property tax rate is 0.87% of assessed home value, according to the Tax Foundation.
Virginia gas tax (motor fuel)
Product | Tax |
---|---|
Gasoline | $0.298 per gallon |
Diesel | $0.308 per gallon |
Source: Sales Tax Handbook
Virginia tax on tobacco and alcohol
Product | Tax |
---|---|
Cigarettes | $0.30 per pack |
Snuff | $0.18 per ounce |
Other Tobacco Products | 10% of the manufacturer's price |
Medical Marijuana | 5.30% |
Recreational Marijuana | 26.30% (5.3% cannabis sales tax + 21% excise tax) |
Source: Sales Tax Handbook
Product | Tax |
---|---|
Beer | $0.26 per gallon |
Wine | $1.51 per gallon |
Liquor | state-controlled |
Source: Sales Tax Handbook
Virginia estate and inheritance taxes
Virginia has no estate or inheritance tax.
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As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
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