4 tax brackets from 2% to 5.75% (top rate kicks in at just $17K)
Virginia has a progressive 4-bracket income tax system: 2%, 3%, 5%, and 5.75%. At $100,000 income, Virginia state tax is approximately $5,175 (5.18% effective rate). The top 5.75% rate applies to income over just $17,000, making VA's effective rate higher than many states for middle-income earners. Virginia fully exempts military retirement pay and offers deductions for age 65+ retirees.
Virginia has a progressive 4-bracket income tax ranging from 2% to 5.75%. Critical detail: The top 5.75% rate applies to income over just $17,000, meaning almost all workers pay the top rate on most of their income. At $100K income, you pay 5.75% on $83,000 of earnings (everything above $17K), resulting in a 5.18% effective rate - higher than many flat-tax states.
Why these rates? Virginia's tax structure dates back decades and hasn't been reformed despite neighboring states lowering rates. Northern Virginia's proximity to Washington DC creates high demand for services (roads, schools, transit) funded by income tax. The low $17K threshold means VA captures more revenue from middle-income earners than states with higher thresholds or flat taxes.
How it compares:
Military advantage: Virginia has the largest military population outside California/Texas. Up to $40,000 of military retirement pay is tax-free (full exemption for most retirees). Active duty pay is taxable, but the retirement exemption makes VA attractive for veterans.
Source: Virginia Department of Taxation - Individual Income Tax
| Taxable Income | Tax Rate |
|---|---|
| $0 - $3,000 | 2% |
| $3,000 - $5,000 | 3% |
| $5,000 - $17,000 | 5% |
| Over $17,000 | 5.75% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Source: Virginia Department of Taxation
Here's what Virginia residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $2,398 | $6,564 | $43,436 | 13.1% |
| $75,000 | $8,340 | $3,835 | $12,175 | $62,825 | 16.2% |
| $100,000 | $12,908 | $5,175 | $18,083 | $81,917 | 18.1% |
| $150,000 | $25,218 | $8,050 | $33,268 | $116,732 | 22.2% |
| $250,000 | $54,094 | $13,800 | $67,894 | $182,106 | 27.2% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Virginia takes $5,175 in state tax alone.
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.8 verified reviews · 3,758 reviews
Planning a move to or from Virginia? Multi-state filing is complex. Get matched with a CPA who handles Virginia taxes and multi-state returns. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Migration Trends: According to U.S. Census Bureau data (2021-2022), Virginia experienced net immigration of 15,340 residents. Top origin states were:
Outflow: Virginia lost residents to:
Why people move to Virginia:
Why people leave Virginia:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Virginia |
|---|---|---|---|
| Virginia | 2-5.75% | $5,175 | Baseline |
| Maryland | 2-5.75% + local | $6,200 | +$1,025 (more tax) |
| North Carolina | 4.5% flat | $4,500 | −$675 (save) |
| West Virginia | 2.36-5.12% | $4,720 | −$455 (save) |
Key insight: Virginia has moderate taxes compared to neighbors. Save $1,025/year vs Maryland at $100K (MD has state + local taxes). However, North Carolina saves $675/year vs VA with its 4.5% flat tax. At $150K, NC saves $1,013/year vs VA.
DC commuters: the big decision
Property tax comparison (critical for NoVA):
Combined income + property tax for DC-area worker at $100K + $400K home:
Bottom line: For DC-area workers, Virginia offers the best tax value, especially with military retirement exemption and retiree deductions. However, North Carolina is better for remote workers or retirees not tied to the DC job market.
Virginia has a progressive 4-bracket system: 2% (up to $3K), 3% ($3K-$5K), 5% ($5K-$17K), and 5.75% (over $17K). The key is that the top 5.75% rate starts at just $17,000, so almost all workers pay 5.75% on most of their income. At $100K income, effective rate is 5.18%. This is higher than flat-tax states like NC (4.5%) or PA (3.07%).
Yes, Virginia is excellent for military retirees. Up to $40,000 of military retirement pay is fully tax-free (this covers most military pensions entirely). Age 65+ retirees get an additional $12,000 deduction for all income. Social Security is also exempt. However, private pensions and 401(k)/IRA withdrawals are taxable at 5.75%. Active duty military pay is taxable. Overall: top-tier for military, moderate for civilian retirees.
Virginia is the tax winner. At $100K income: VA charges $5,175, MD (Montgomery Co.) charges $7,160 (state + local), DC charges $6,800. VA saves $1,625-$1,985/year. Property taxes: VA 0.99% avg (NoVA), MD 1.12%, DC 0.85% (but DC homes cost 30% more). Combined, VA saves $2,000-3,000/year for typical worker+homeowner. Choose VA unless you need walkability (DC) or excellent schools justify MD's Bethesda/Potomac premium.
North Carolina wins on taxes: NC 4.5% flat saves $675/year vs VA 5.75% top rate at $100K income. At $150K, NC saves $1,013/year. Property tax similar (VA 0.82%, NC 0.77%). Cost of living: NC median home $292K vs VA $370K (NoVA $550K+). Choose NC if: remote worker, retiree, or work in Research Triangle/Charlotte. Choose VA if: federal job, defense contractor, or tech in NoVA (salaries often 20-30% higher in VA).
Yes, Virginia taxes 401(k) and IRA withdrawals at the full 5.75% rate (top bracket). However, exemptions help: (1) Social Security is fully exempt, (2) Military retirement up to $40K exempt, (3) Age 65+ get $12,000 deduction for all income. So a 65+ retiree with $50K total ($30K Social Security + $20K IRA) pays tax only on $8K ($20K IRA - $12K deduction), not the full $50K. Better than high-tax states, worse than FL/NC/GA.
How we calculate: Virginia's 4-bracket system is straightforward: apply 2% to first $3K, 3% to $3K-$5K, 5% to $5K-$17K, and 5.75% to income above $17K. We subtract VA's standard deduction (~$8,000 for single filers in 2026, following federal with adjustments), then apply the brackets. For military retirees and age 65+, we subtract applicable exemptions before calculation. Federal tax uses standard 2026 IRS brackets.
Data sources:
Verification: Virginia's 4-bracket system (2%, 3%, 5%, 5.75%) and income thresholds verified against VA Department of Taxation official publications on March 17, 2026. Military retirement exemption ($40K max) verified against VA Code § 58.1-322(C)(20). Age 65+ deduction ($12K) verified against VA Code § 58.1-322(D). Calculator accuracy: 99%+ for standard W-2 wage income.
Limitations: Assumes single filer, W-2 wage income only, under age 65, not military retiree. Does not include: federal deductions/credits, military retirement exemption (up to $40K for military retirees), age 65+ deduction ($12K for all income), Virginia tax credits (low-income, disability), DC/MD tax credits for commuters. Property tax varies by jurisdiction (NoVA 0.99-1.2%, rural VA 0.6-0.8%).
For complex situations: Consult a licensed VA CPA or tax professional, especially for: military retirement exemption calculations (complex rules for age and years of service), age 65+ deductions and limitations, multi-state income allocation for DC/MD commuters, property tax variation across VA jurisdictions.
These calculations are estimates for informational purposes only. Tax situations vary based on filing status, age (65+ get $12K deduction), military status (military retirement up to $40K exempt), income types, and cross-border commuting. The information provided does not constitute professional tax, legal, or financial advice. Virginia's $17,000 threshold for top 5.75% rate means most earners pay top rate on majority of income. Always verify your specific obligations with the Virginia Department of Taxation and consult a licensed tax professional for advice specific to your situation.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026