Tangible Personal Property De Minimis Exemptions by State, 2024
Does your state have a small business exemption for machinery and equipment?
3 min readHow does Virginia’s tax code compare? Virginia has a graduated individual income tax, with rates ranging from 2.00 percent to 5.75 percent. Virginia also has a flat 6.00 percent corporate income tax rate and permits local gross receipts taxes. Virginia has a 5.30 percent state sales tax rate, a max local sales tax rate of 0.70 percent, and an average combined state and local sales tax rate of 5.75 percent. Virginia’s tax system ranks 26th overall on our 2023 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: How Does Your State Compare?
Does your state have a small business exemption for machinery and equipment?
3 min readExpanding Virginia’s sales tax base to include B2B digital transactions could lead to tax pyramiding, hide the true cost of government, and make the sales tax system much less neutral and transparent.
5 min readIndividual 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?
8 min readIn 2021 and 2022 alone, more states enacted laws converting graduated-rate individual income tax structures into single-rate income tax structures than did so in the whole 108-year history of state income taxation up until that point.
10 min readWorking from home is great. The tax complications? Not so much.
4 min readRetail 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).
9 min readGraduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
7 min readThe pandemic has accelerated changes to the way we live and work, making it far easier for people to move—and they have. As states work to maintain their competitive advantage, they should pay attention to where people are moving, and try to understand why.
5 min readVirginia Governor Youngkin unveiled the contours of a tax reform plan incorporated into his forthcoming budget, which includes three major structural elements: a reduction in the individual income tax rate, a 0.9 percentage point increase in the sales tax rate, and the broadening of the sales tax base to include some “new economy” digital services.
6 min readMarijuana taxation is one of the hottest policy issues in the United States. Twenty-one states have implemented legislation to legalize and tax recreational marijuana sales.
16 min read