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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