Virginia Tax: Guide to Income, Sales, Property, and Retirement Taxes

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Navigating the complexities of state taxes can be daunting, but understanding Virginia's tax landscape is essential for residents and newcomers alike.

In this guide, we'll explore key components of The Old Dominion State's tax system, from income and sales taxes to property taxes and retirement benefits.

Virginia tax: Overview

In Virginia, some folks might pay a little more in income taxes than the national average, but there’s a silver lining. Sales taxes here are pretty low, with the average combined rate coming in at about 5.7%. Property taxes are also on the lighter side compared to many other states.

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And if you’re retired, there’s even more good news. Virginia doesn’t tax Social Security benefits, and Railroad Retirement benefits are exempt from tax.

In the news: Starting January 1, 2026, Fairfax County will begin charging a 4% meal tax on prepared foods and drinks. The new tax will apply to purchases from restaurants, food trucks, and prepared foods from grocery stores, but it won’t affect the cities of Fairfax, Herndon, Vienna, or the town of Clifton.

When combined with Virginia’s 6% sales tax, the total tax rate on prepared meals in most of Fairfax County will reach 10%.

County leaders expect the tax to bring in between $65 million and $68 million in just the first half of the year, with the money going toward general county services and helping to ease the burden on property taxpayers.

Also, Virginia will again issue tax rebates to eligible residents in 2025. For more information, see 2025 Virginia Tax Rebates Coming Soon? What to Know.

[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 tax

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Virginia Income Tax Range

Income tax rates for 2025 in Virginia range from 2% to 5.75%.

Virginia retirement taxes

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.

Social Security: Not taxable
Pensions: Taxable
401(k) and IRA Distributions: Taxable

Virginia sales tax

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Virginia's sales tax is 5.30%. The average local sales tax rate is 0.47%, making the average combined state and local rate 5.77%, 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 0.77% of assessed home value, according to the Tax Foundation.

For information about cheap Virginia property tax bills, check out Kiplinger's report, Ten Cheapest Places to Live in Virginia.

Virginia gas tax

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Product	Tax Amount
Gasoline	$0.16 per gallon
Diesel	$0.20 per gallon

Source: Sales Tax Handbook

Virginia tax on tobacco and alcohol

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Virginia tobacco taxes
Product	Tax Amount
Cigarettes	$0.30 per pack
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

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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.

Kelley R. Taylor is the senior tax editor at Kiplinger.com, where she breaks down federal and state tax rules and news to help readers navigate their finances with confidence. A corporate attorney and business journalist with more than 20 years of experience, Kelley has helped taxpayers make sense of shifting U.S. tax law and policy from the Affordable Care Act (ACA) and the Tax Cuts and Jobs Act (TCJA), to SECURE 2.0, the Inflation Reduction Act, and most recently, the 2025 “Big, Beautiful Bill.” She has covered issues ranging from partnerships, carried interest, compensation and benefits, and tax‑exempt organizations to RMDs, capital gains taxes, and energy tax credits. Her award‑winning work has been featured in numerous national and specialty publications.