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 5.77%. The statewide median property tax rate is generally below average, too.
Virginia does not tax Social Security benefits. Railroad Retirement benefits are also exempt.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In the News: Some Virginia officials are exploring a potential new revenue stream by considering a “meals tax.” If approved, the tax would be levied on prepared foods and beverages sold in convenience stores, grocery stores, and restaurants. For more information, see Is a New ‘Meals Tax’ Coming to Virginia?
[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 2024 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 (1.5% 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
| Product | Tax Amount |
|---|---|
| Gasoline | $0.16 per gallon |
| Diesel | $0.20 per gallon |
Source: Sales Tax Handbook
Virginia tax on tobacco and alcohol
Virginia tobacco taxes
| Product | Tax Amount |
|---|---|
| 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
Virginia alcohol taxes
| Product | Tax Amount |
|---|---|
| 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.
Related Content
-
Understanding Your Financial Belief SystemIf we can disconnect from our past beliefs and assess our current situation with a certain level of objectivity, we can make more appropriate decisions.
-
Why This Economist Thinks the Fed Is Already Late to Cut RatesMoody's Analytics chief economist Mark Zandi talks to Kiplinger about what he thinks the Federal Reserve is getting wrong on inflation.
-
IRS Ends Inherited IRA Confusion: Annual RMDs Required for ManyIRAs The agency has resolved a major point of uncertainty for inherited IRA beneficiaries.
-
$145 Million in ‘Senior Freeze’ Checks MailedProperty Tax What you need to know about New Jersey's property tax relief program for older adults.
-
TaxAct Class Action Settlement: Details to KnowTax Filing A multimillion-dollar settlement over alleged data privacy violations affects some TaxAct users.
-
An IRA Contribution Option You Might Not KnowIRAs Retirement savings might not have to take a back seat just because your partner doesn't earn income.
-
Project 2025 Tax Overhaul Blueprint: What You Need to KnowTax Proposals Some people wonder what Project 2025 is and what it suggests for taxes.
-
The Taxes That Come out of Your PaycheckPayroll Tax Your take-home pay is often less than expected due to several payroll tax withholdings you need to know.
-
Seven States Where Gas Tax Increased July 1Gas Taxes Since July has arrived, drivers in several states are facing a gas tax hike.
-
401(k) Withdrawal Penalty Rule Changes for 2024Tax Rules More people are taking early emergency withdrawals from retirement savings accounts. New rules might offer some relief.
