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

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

December 26, 2008

Kentucky, South Carolina, Virginia Propose Higher Cigarette Taxes

December 17, 2008

Federal Court Halts Iowa Attempt to Tax Internet

October 9, 2008

Blog Looks at Maryland, Virginia Taxes

August 22, 2008

State Lawmakers Promote Sound Tax Policy by Doing Nothing

July 15, 2008

Certainty and Uniformity: The Standards (Testimony Before Congress on H.R. 5267, the Business Activity Tax Simplification Act of 2008)

June 24, 2008

Virginia Holds Legislative Special Session on Transportation Taxes

June 23, 2008

Virginia Preps for Hurricane Supplies Tax Holiday

May 12, 2008

Virginia Announces Process for Refunding Illegal NVTA Taxes

April 14, 2008

Virginia Space Resupply Exemption Raises Policy, Legal Concerns

March 31, 2008

Tax/Fee Confusion and Scare Tactics in Virginia

March 7, 2008

Virginia Supreme Court: Giving Power to Tax to an Unelected Body is Unconstitutional

February 29, 2008

Tax Foundation Answers Legal Questions behind Northern Virginia Transportation Tax Dispute

February 15, 2008

Virginia Supreme Court Considers Taxpayer Protections in NVTA Tax Case

February 13, 2008

The 1870s Called: It Wants Overreaching Virginia Legislature Back

January 29, 2008

Virginia Bicyclist Hit With “Abusive Driver Fee” Tax

January 21, 2008

Virginia Governor Reiterates Driver Surcharge Repeal

January 17, 2008

Virginia Governor Open to Repeal of Abusive Driver Surcharges

January 15, 2008

Virginia Court Hears Challenge to Taxing Power of Local Authority

August 28, 2007

More Roadblocks for Virginia’s Tax on Traffic Offenses

August 13, 2007