Imagine running a small business and being assessed a penalty by the IRS. Then imagine being told by the IRS that the only way to avoid the penalty is to commit a serious felony, laundering money. This Kafkaesque...
The facts on Virginia’s Tax Climate
5.75%Individual income TaxTop rate
6%Corporate Income TaxFlat rate
$1392Property TaxCollections Per Capita
Virginia's Individual Income Tax System
Virginia's personal income tax system consists of four brackets and a top rate of 5.75%. That rate ranks 25th highest among states levying an individual income tax. Virginia's state and local income tax collections per person were $1254 in 2012 which ranked 10th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Virginia's Corporate Income Tax System
Virginia's corporate income tax system consists of a flat rate of 6%. That rate ranks 19th lowest among states levying a corporate income tax. Virginia's state and local corporate income tax collections per person were $103 in 2012 which ranked 17th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Virginia Sales and Excise Taxes
Virginia levies a 5.3% general sales or use tax on consumers, which is below the national median of 5.95%. The average local sales tax rate is an additional 0.33%. Virginia's state and local governments collect $559 per person in general sales taxes and $462 per person in excise taxes, for a combined figure of $1021, which ranks 6th lowest nationally. Virginia's gasoline tax stands at 22.4¢ (17th lowest nationally), while its cigarette tax stands at $0.3 (2nd lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Virginia Property Tax Collections Average
Virginia's state and local governments collected approximately $1392 per person in property taxes in 2012, which ranks 17th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 24th in Virginia
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Virginia taxpayers worked until April 24th (11th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Maryland, April 28th (ranked 7th latest nationally); West Virginia, April 10th (ranked 9th earliest nationally); Kentucky, April 8th (ranked 7th earliest nationally); Tennessee, April 5th (ranked 4th earliest nationally); and North Carolina, April 14th (ranked 23rd earliest nationally).
Virginia's State and Local Tax Burden Below National Average
Virginia's 2011 tax burden of 9.2% ranks 21st lowest out of 50 states, and is below the national average of 9.8%. Virginia's taxpayers pay $4469 per capita in state and local taxes.
Virginia's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Virginia's 2015 Business Tax Climate Index Ranks 27
Virginia ranks 27th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Maryland, 40th, West Virginia, 21st, Kentucky, 26th, Tennessee, 15th, and North Carolina, 16th.
State Business Tax Climate Index (full study)
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