Virginia State Tax Guide

Virginia state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.

Virginia flag blowing in the wind on a cloudy day used for a Virginia state tax article
(Image credit: Getty Images)

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

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(Image credit: Getty Images)

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?

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In Virginia, the median property tax rate is 0.87% of assessed home value, according to  the Tax Foundation.


Virginia gas tax (motor fuel)

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ProductTax
Gasoline$0.298 per gallon
Diesel$0.308 per gallon

Source: Sales Tax Handbook


Virginia tax on tobacco and alcohol

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ProductTax
Cigarettes$0.30 per pack
Snuff$0.18 per ounce
Other Tobacco Products10% of the manufacturer's price
Medical Marijuana5.30%
Recreational Marijuana26.30% (5.3% cannabis sales tax + 21% excise tax)

Source: Sales Tax Handbook

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ProductTax
Beer$0.26 per gallon
Wine$1.51 per gallon
Liquorstate-controlled

Source: Sales Tax Handbook

Virginia estate and inheritance taxes

Virginia has no estate or inheritance tax.

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Kelley R. Taylor
Senior Tax Editor, Kiplinger.com

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. 

With contributions from