Virginia vs Federal Tax Comparison
| Tax Type | VA State Rate | Federal Rate | Notes |
|---|---|---|---|
| Personal Income Tax | 2–5.75% | Federal: 10–37% | Combined fed+state applies |
| Corporate Income Tax | 6% | Federal: 21% | 6% flat corporate rate |
| State Sales Tax | 5.3% | No federal sales tax | Combined avg: 5.63% |
| Capital Gains Tax | 5.75% | Federal: 0–20% | Same as income tax |
About Virginia Taxes
Large federal contractor economy; relatively moderate tax burden.
Virginia levies income tax at rates from 2–5.75%. The progressive bracket system means higher earners pay a larger percentage on income above each threshold.
Corporate activity in Virginia faces a 6% state corporate tax rate. 6% flat corporate rate. Combined with the 21% federal corporate rate, businesses should plan accordingly.
Calculate Your Net Salary in Virginia
See federal + VA state tax deductions, Social Security, Medicare, and take-home pay
Open US Salary CalculatorFrequently Asked Questions — Virginia Taxes
What are Virginia's income tax brackets for 2026?
Virginia has a progressive income tax ranging from 2–5.75%. The top rate of 5.75% applies to the highest income bracket. Filers should check the current threshold amounts on the Virginia Department of Revenue website.
What is the corporate income tax rate in Virginia?
Virginia imposes a corporate income tax at 6%. 6% flat corporate rate. Businesses should also account for federal corporate tax at 21% on top of the state rate.
What is the sales tax rate in Virginia?
Virginia has a state sales tax of 5.3%. When local city and county taxes are included, the average combined rate reaches 5.63%. Rates vary by locality so check the specific municipality for accurate figures.
How does Virginia compare to neighboring states for taxes?
Virginia's overall tax burden ranks near average among US states. The state levies income tax at up to 5.75%. For individuals evaluating relocation or remote work, comparing the full picture — income, sales, and property taxes — is essential. Use our US Salary Calculator to estimate your net income in Virginia.
Are there any special tax incentives or exemptions in Virginia?
Virginia offers notable tax characteristics: Large federal contractor economy; relatively moderate tax burden. Businesses and individuals should consult a qualified tax advisor to understand eligibility for available credits, deductions, and incentives specific to Virginia.
Cost of Living in Virginia
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