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

Northrop Grumman is Headed to Virginia

April 28, 2010

Obama’s and Biden’s Tax Returns

April 16, 2010

Minnesota, Vermont, Virginia, and Pennsylvania Celebrate Tax Freedom Day

April 13, 2010

Virginia Lawmakers Debate Film Credits vs. Film Grants, and Entirely Miss the Point

March 5, 2010

Virginia Amazon Tax Dies, Supporters Promise Another Try (Right Now, It Turns Out)

February 26, 2010

Virginia to Enact Amazon Tax, Too?

February 22, 2010

Virginia Gov. McDonnell Drops Income Tax Increase; Seeks Increase for Film Promotion and Business Subsidies

February 19, 2010

“Economic Development” Teams in VA, MD and DC Bid for Northrop Grumman Headquarters

February 15, 2010

Virginia Missed the Starting Gun, but Joins the Race to the Bottom Nonetheless

February 11, 2010

Virginia Governor Kaine Proposes Income Tax Increase, First State Spending Cut

December 18, 2009

Virginia’s Energy Efficiency Sales Tax Holiday Starts Tomorrow

October 8, 2009

Question for Creigh Deeds

September 25, 2009

Virginia Tax Hike Discussion May Impede Recovery

August 24, 2009

Virginia’s Hurricane Sales Tax Holiday

May 20, 2009

In Mean-Spirited Interstate Competition, Some State Unemployment Offices Stiff Non-Residents

April 16, 2009

Property Tax Rates Going Up in Once-Booming Virginia Exurb

April 9, 2009

Virginia DOT: Fund Our Bonuses or Risk Death

April 7, 2009

Fire Department in Fairfax County, VA, Caught in Corrupt Spending, Uses “Washington Monument” Strategy

March 31, 2009

Every State Tax Department Needs a Mouse Puppet

January 24, 2009

State Budgets: Virginia Makes Modest Cuts, Proposes Cigarette Tax Hike

December 26, 2008