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 $66,900 of earnings (everything above $17K, after the $16,100 federal standard deduction), resulting in a 4.57% effective state 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
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 | $3,820 | $1,692 | $5,512 | $44,488 | 11.0% |
| $75,000 | $7,670 | $3,129 | $10,799 | $64,201 | 14.4% |
| $100,000 | $13,170 | $4,567 | $17,737 | $82,263 | 17.7% |
| $150,000 | $24,734 | $7,442 | $32,176 | $117,824 | 21.5% |
| $250,000 | $51,304 | $13,192 | $64,496 | $185,504 | 25.8% |
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 $4,567 in state tax alone.
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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% | $4,567 | Baseline |
| Maryland | 2-5.75% + local | $6,366 | +$1,799 (higher) |
| North Carolina | 3.99% flat | $3,348 | −$1,219 (save) |
| West Virginia | 2.11-4.58% | $3,045 | −$1,522 (save) |
Key insight: Virginia has moderate taxes compared to neighbors. Save $1,799/year vs Maryland at $100K (MD has state + local taxes). North Carolina saves $1,219/year vs VA with its 3.99% flat tax. West Virginia now saves $1,522/year vs VA following WV's 2023 HB 2526 rate cuts.
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 top 5.75% rate starts at just $17,000, so almost all workers pay 5.75% on the bulk of their income. At $100K income, state tax is approximately $4,567 (4.57% effective state rate). This is higher than NC (3.99% flat, $3,348) or PA (3.07% flat, $2,576).
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 $4,567, MD (Montgomery Co.) charges $7,160 (state + local), DC charges $6,800. VA saves $2,233/year vs DC, $2,593/year vs MD suburbs. Property taxes: VA 0.99% avg (NoVA), MD 1.12%, DC 0.85% (but DC homes cost 30% more). Combined income+property at $100K + $400K home: VA $8,527, MD $11,640, DC $10,200 — VA saves $3,113/year vs MD, $1,673/year vs DC. Choose VA unless you need walkability (DC) or excellent schools justify MD's Bethesda/Potomac premium.
North Carolina wins on income tax: NC 3.99% flat ($3,348 at $100K) saves $1,219/year vs VA ($4,567). At $150K, NC saves $2,344/year vs VA ($7,442 − $5,098). 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.
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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. Taxable income uses the federal standard deduction ($16,100 single for 2026) as the basis — the calculator applies $83,900 taxable income at $100K for both state and federal calculations. State tax at $100K: 2%×$3K + 3%×$2K + 5%×$12K + 5.75%×$66,900 = $4,567 (API-verified). For military retirees and age 65+, applicable exemptions apply. 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.
Last Updated: May 2026
Verified By: Daniel · CountryTaxCalc
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Last Updated: May 2026