Taxes in Virginia

Virginia Tax Rates, Collections, and Burdens

How 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 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 25th overall on our 2022 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. 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?


Related Articles

Lunch Links: Trump on Carbon Taxes, Taxes on Beer and Pizza, and DC Tax Changes

May 16, 2016

Lunch Links: Europeans Say 14 States are Tax Havens, Trump Tax Returns, No Tax Powers for Arizona Developers

May 11, 2016

Virginia Governor Releases Budget Proposal

December 17, 2015

Jim Gilmore’s Car Tax Repeal Plan, 18 Years Later

July 30, 2015

Nevada Voters to Consider Economically Damaging Gross-Receipts-Style Tax, a Type Only Five Other States Have

October 28, 2014

Virginia Chainsaw Tax Holiday Doesn’t Cut It

May 27, 2014

Federal Court Rejects Challenge to Use of Toll Revenues for Corridor Transit Project

January 23, 2014

Virginia Same-Sex Joint Tax Filing: Cuccinelli’s Last Act and Herring’s First

January 23, 2014

Tax Foundation Presents Seal to Five States for State Tax Information Transparency

December 16, 2013

The Tax Bite on Thanksgiving Travel

November 21, 2013

Virginia Gubernatorial Candidate Tax Proposals

November 5, 2013

D.C. Now Better than Virginia and Maryland on Sales Tax Rates

October 2, 2013

D.C. Poised to Have Area’s Lowest Sales Tax for First Time in 45 Years

September 20, 2013

Virginia Gubernatorial Candidates Eye Cumbersome Tax Code

July 15, 2013

Virginia Has a Sheep Tax… It Raises $8,000 Per Year

May 28, 2013

Five States Win Tax Foundation Tax Information Transparency Honors

April 15, 2013

McDonnell Modifies Virginia’s New Transportation Taxes by Expanding Their Scope, Sort Of

March 27, 2013

Internet Sales Tax Collections Falling Far Short of Experts’ Estimates

March 18, 2013

Virginia Legislators Approve Increases in Sales Tax, Car Tax, Regional Taxes

February 25, 2013

Crunch Time for Virginia Transportation Funding Plan

February 11, 2013