Virginia

The facts on Virginia’s Tax Climate

Virginia's Individual Income Tax System
Virginia's individual income tax system consists of four brackets with a top rate of 5.75%. The top rate ranks 25th highest among states levying an individual income tax. Virginia's state and local tax collections per person were $1,318 in 2013, which ranked 9th highest nationally.

50-State Table of Individual Income Tax Rates

Virginia's Corporate Income Tax System
Virginia's corporate income tax system consists of a flat rate of 6%. That rate ranks 32nd highest among states levying a corporate income tax. Virginia localities also collect a modified gross receipts tax called the Business/Professional/Occupational License (BPOL) tax, with rates ranging from 0.02 percent to 0.58 percent. Virginia's state and local corporate income tax collections per person were $93 in 2013 which ranked 37th highest nationally.

50-State Table of Corporate Income Tax Rates

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 0.3%. Virginia's state and local governments collect $593 per person in general sales taxes and $478 per person in excise taxes, for a combined figure of $1,071, which ranks 44th highest nationally. Virginia's gasoline tax stands at 22.33 cents per gallon, 36th highest nationally, while its cigarette tax stands at $0.30, 49th highest nationally.

50-State Table of State and Local Sales Tax Rates

Virginia Property Tax Collections Average
Virginia's state and local governments collected  approximately $1,430 per person in property taxes in 2013, which ranks 18th nationally.

For 50-state tables of property tax collections, visit our latest web edition of Facts & Figures, or download our mobile app for Apple and Android.

Tax Freedom Day Arrives on April 22nd in Virginia

Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Virginia taxpayers have to work until April 22nd (32nd earliest nationally) to pay their total tax bill.

Virginia's State and Local Tax Burden Ranks 27th

Virginia's 2012 tax burden of 9.3% ranks 27th highest in the nation, and is below the national average of 9.9%. Virginia's taxpayers pay $4,623 per capita in state and local taxes.
Virginia's State-Local Tax Burden, 1977-Present

State-Local Burden Rankings (full study)

Virginia's 2016 Business Tax Climate Index Ranks 27th

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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