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Kiplinger
Kiplinger
Business
Kelley R. Taylor

Virginia Tax Guide

Virginia flag blowing in the wind on a cloudy day used for a Virginia state tax article.

Virginia tax: Overview

Income taxes in Virginia can be a bit higher than the national average for some residents. However, sales tax rates in Virginia are fairly low. Virginia's average combined state and local sales tax rate is 5.77%. The statewide median property tax rate is generally below average, too.

Virginia does not tax Social Security benefits. Railroad Retirement benefits are also exempt.

In the News: Some Virginia officials are exploring a potential new revenue stream by considering a “meals tax.” If approved, the tax would be levied on prepared foods and beverages sold in convenience stores, grocery stores, and restaurants. For more information, see Is a New ‘Meals Tax’ Coming to Virginia?


[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.] 


Virginia income taxes

(Image credit: Getty Images)

Virginia Income Tax Range

Income tax rates for 2024 in Virginia range from 2% to 5.75%.

Virginia Tax Breaks for Other Retirement Income

In addition, Virginia taxpayers age 65 and older can generally claim a deduction of up to $12,000. If you were born on or after January 2, 1939, the amount of the deduction is based on your income.


Virginia sales tax

(Image credit: Getty Images)

Virginia's sales tax is 5.30%. The average local sales tax rate is 0.45%, making the average combined state and local rate 5.75%, according to the Tax Foundation.

  • Groceries: Taxable (1.5% state rate; local rates may apply)
  • Clothing: Taxable
  • Motor Vehicles: Exempt from ordinary sales tax, but taxable under special 4.15% excise tax.
  • Prescription Drugs: Exempt

How much is property tax in Virginia?

(Image credit: Getty Images)

In Virginia, the median property tax rate is 0.87% of assessed home value, according to  the Tax Foundation.


Virginia gas tax 

(Image credit: Getty Images)

Source: Sales Tax Handbook


Virginia tax on tobacco and alcohol

Virginia tobacco taxes

Source: Sales Tax Handbook

Virginia alcohol taxes

Source: Sales Tax Handbook


Virginia estate and inheritance taxes

Virginia has no estate or inheritance tax.


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