Virginia has a graduated state individual income tax, with rates ranging from 2.00 percent to 5.75 percent. There are also jurisdictions that collect local income taxes. Virginia has a flat 6.00 percent corporate income tax rate, a 5.30 percent state sales tax rate (including a mandatory 1 percent local add-on), and an average combined state and local sales tax rate of 5.77 percent. Virginia has a 0.78 percent effective property tax rate on owner-occupied housing value. Virginia does not have an estate tax or inheritance tax. Virginia’s gas tax is 41.6 cents per gallon, and its cigarette excise tax is $0.60 per pack of 20 cigarettes.
Virginia raises tax revenue primarily through property taxes (30.8 percent of total state and local tax revenue), individual income taxes (27.1 percent), and other taxes (19.8 percent). Virginia collects $7,043 in state and local tax collections per capita, carries $9,182 in state and local debt per capita, and has a 93 percent funded ratio of public pension plans. Virginia’s tax system ranks 30th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Virginia is no exception. Use the tabs below to compare Virginia taxes with other states and to see how Virginia raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
122 min read
Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
9 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
18 min read
Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
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However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
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An ideal sales tax is imposed on all final consumption, both goods and services, but excludes intermediate transactions to avoid tax pyramiding.
15 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
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Gas tax revenues have decoupled from road expenses and have been unable to support road funding in recent years. As such, states nationwide are exploring ways to supplement or replace gas tax revenues.
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At the end of 2025, the individual tax provisions in the Tax Cuts and Jobs Act (TCJA) expire all at once. Without congressional action, most taxpayers will see a notable tax increase relative to current policy in 2026.
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