Virginia Income Tax Calculator: Estimate Your VA State Taxes (2025)

Understanding your Virginia state income tax obligation is crucial for accurate financial planning. With Virginia's progressive tax system ranging from 2% to 5.75%, knowing exactly how much you'll owe helps you budget effectively, avoid surprises at tax time, and make informed decisions about withholdings and estimated payments.

Our Virginia income tax calculator provides instant, accurate estimates of your state tax liability for 2025. Whether you're a Virginia resident, considering a move to the Commonwealth, or need to understand tax implications for business decisions, this tool delivers precise calculations based on current Virginia tax brackets and the $8,000 standard deduction for single filers ($16,000 for married couples filing jointly).

How Virginia State Income Tax Works

Virginia uses a progressive income tax system, meaning higher portions of your income are taxed at progressively higher rates. Unlike federal taxes with seven brackets, Virginia keeps it simple with just four tax brackets applicable to all filing statuses. However, the state does adjust standard deduction amounts, recognizing that married couples and families have different financial needs.

Understanding Your Taxable Income

Before you can calculate your Virginia state tax, you need to determine your taxable income. This starts with your federal adjusted gross income (AGI) shown on your federal tax return. From there, Virginia allows you to subtract:

• Standard Deduction: $8,000 if filing as single, $16,000 if married filing jointly
• Itemized Deductions: If you itemize on your federal return and it exceeds the standard deduction
• Virginia-Specific Adjustments: Including up to $10,000 in military basic pay for eligible service members

Real-World Example: Sarah in Richmond

Let's walk through a practical example. Sarah is a marketing manager in Richmond earning $68,000 annually. She's single and takes the standard deduction. Here's how her Virginia state tax breaks down:

Comparison: Married Couple Scenario

Now consider James and Maria, a married couple in Northern Virginia with a combined income of $120,000. They file jointly and also take the standard deduction:

Notice how James and Maria benefit from the higher married standard deduction, even though they pay the same tax rates on their taxable income.

When to Itemize vs. Take Standard Deduction

Virginia follows federal rules for many deductions, but there are important differences. Generally, you'll itemize on your Virginia return only if:

• You itemized on your federal return AND
• Your total itemized deductions exceed Virginia's standard deduction

Special Virginia Tax Considerations

Virginia offers several unique provisions that can affect your state tax calculation:

• Military Pay Subtractions: Up to $10,000 of military basic pay for service members on active duty for more than 90 consecutive days
• Retirement Income: Social Security benefits are fully exempt from Virginia income tax
• Age Deduction: Taxpayers born before January 1, 1939, may qualify for an additional age deduction
• Spouse Tax Adjustment: Married couples with significantly different incomes may benefit from this calculation

Virginia vs. Neighboring States

Understanding how Virginia compares to nearby states helps with relocation decisions and tax planning. The Commonwealth's top rate of 5.75% is competitive with many neighboring states:

• Maryland: Top rate 5.75% (plus county income taxes of 2.25-3.2%)
• District of Columbia: Top rate 10.75%
• West Virginia: Top rate 5.12% (gradually phasing down to 3.5%)
• North Carolina: Flat rate 4.75%
• Tennessee: No state income tax (but high sales taxes)

Common Mistakes to Avoid

Optimizing Your Virginia Tax Situation

While you can't change Virginia's tax brackets, you can take steps to minimize your state tax burden legally:

• Maximize Retirement Contributions: Contributions to traditional 401(k) and IRA accounts reduce your federal AGI, which carries over to your Virginia return
• Consider Itemizing Carefully: If you have substantial deductible expenses, calculate whether itemizing provides a better benefit than the standard deduction
• Plan Major Income Events: If possible, time large income realizations (capital gains, bonus payments) across tax years to avoid pushing yourself into a higher bracket
• Use Tax-Advantaged Accounts: 529 college savings plans and Health Savings Accounts (HSAs) offer Virginia tax benefits

When and How to Pay Your Virginia Taxes

Virginia state income taxes are typically paid through several methods:

• Withholding: If you're a W-2 employee, your employer withholds Virginia taxes from each paycheck
• Estimated Payments: Self-employed individuals and those with significant investment income should make quarterly payments by May 1, June 15, September 15, and January 15
• Annual Return: File Form 760 (Virginia Individual Income Tax Return) by May 1st each year

Key Takeaways

Virginia's state income tax system is relatively straightforward with four progressive brackets and reasonable standard deductions. By understanding how the brackets apply to your taxable income and taking advantage of available deductions, you can accurately estimate your state tax liability and plan accordingly.