Virginia Tax Rates, Collections, and Burdens
How does Virginia’s tax code compare? Virginia has a graduated state individual income tax, with rates ranging from 2.00 percent to 5.75 percent. Virginia has a 6.0 percent corporate income tax rate. Virginia also has a 4.30 percent state sales tax rate, a 1 percent mandatory, statewide, local add-on sales tax rate, and an average combined state and local sales tax rate of 5.77 percent. Virginia has a 0.72 percent effective property tax rate on owner-occupied housing value.
Virginia does not have an estate tax or inheritance tax. Virginia has a 39.10 cents per gallon gas tax rate and a $0.60 cigarette excise tax rate. The State of Virginia collects $6,179 in state and local tax collections per capita. Virginia has $7,806 in state and local debt per capita and has an 86 percent funded ratio of public pension plans. Overall, Virginia’s tax system ranks 25th on our 2024 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Virginia is no exception. The first step towards understanding Virginia’s tax code is knowing the basics. How does Virginia collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
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