The facts on Virginia’s Tax Climate

  • 5.75%
    Individual income Tax
    Four Brackets
  • 6%
    Corporate Income Tax
    Flat Rate
  • 5%
    Sales tax
  • $1,481
    Property Tax
    Collections Per Capita

Virginia’s Individual Income Tax System

Virginia’s personal income tax system consists of four separate brackets with a top rate of 5.75% kicking in at an income level of $17,000. That top rate ranks 28th highest among states levying an individual income tax. Virginia’s 2010 state-level individual income tax collections were $1,086 per person, which ranked 9th highest nationally.


50-State Table of Individual Income Tax Rates

50-State Table of State Individual Income Tax Collections

50-State Table of State and Local Individual Income Tax Collections Per Capita

Tax Freedom Day Arrives on April 20 in Virginia

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, Virginia taxpayers work until April 20 (ranked 11th nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: North Carolina, April 11 (ranked 31st nationally); Tennessee, March 31 (ranked 50th nationally); Kentucky, April 9 (ranked 37th nationally); West Virginia, April 8 (ranked 39th nationally); Maryland, April 23 (ranked 5th nationally); and DC, April 20 (ranked 11th nationally).



Virginia’s State and Local Tax Burden Below National Average

Virginia’s state and local tax burden is currently estimated at 9.1% of income (33rd nationally), below the national average of 9.8%. Compared to the 1977 data, Virginia had a tax burden of 9.8% (25th nationally), decreasing 0.7% overall. Currently Virginia taxpayers pay $4,392 per capita in state and local taxes.
Virginia’s State-Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009

Virginia’s 2013 Business Tax Climate Index Ranks 27th

Virginia ranks 27th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Maryland (41st), West Virginia (23rd), Kentucky (24th), Tennessee (15th), and North Carolina (44th).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)