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 $73,320 of earnings (everything above $17K, after Virginia's own $8,750 standard deduction + $930 personal exemption), resulting in a 4.94% 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 subtracted from Virginia taxable income. 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 | $2,061 | $5,881 | $44,119 | 11.8% |
| $75,000 | $7,670 | $3,498 | $11,168 | $63,832 | 14.9% |
| $100,000 | $13,170 | $4,936 | $18,106 | $81,894 | 18.1% |
| $150,000 | $24,734 | $7,811 | $32,545 | $117,455 | 21.7% |
| $250,000 | $51,304 | $13,561 | $64,865 | $185,135 | 25.9% |
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 $4,936 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% | $4,936 | Baseline |
| Maryland | 2-6.5% + 3.2% Montgomery Co. | $7,374 | +$2,438 (higher) |
| North Carolina | 3.99% flat | $3,481 | −$1,455 (save) |
| West Virginia | 2.11-4.58% | $3,691 | −$1,245 (save) |
Key insight: Virginia has moderate taxes compared to neighbors. Save $2,438/year vs Maryland at $100K (MD state tax plus Montgomery County's 3.2% county tax; county rates run 2.25%-3.3%). North Carolina saves $1,455/year vs VA with its 3.99% flat tax. West Virginia now saves $1,245/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 clearly beats Maryland, but DC itself is now roughly a wash with Virginia on ongoing tax burden — VA wins on income tax alone, DC wins once property tax is included, given DC's much lower rate. North Carolina remains the cheapest of all 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 $4,936 (4.94% effective state rate). This is higher than NC (3.99% flat, $3,481) or PA (3.07% flat, $3,070).
Yes, Virginia is excellent for military retirees. Up to $40,000 of military retirement pay is subtracted from Virginia taxable income. Age 65+ retirees may claim an age deduction of up to $12,000 (for single filers born after 1938 it is reduced $1 for every $1 of AGI over $50,000, not counting taxable Social Security). Taxable Social Security is also subtracted. 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 clearly beats Maryland, but DC is now close on total burden. At $100K income: VA charges $4,936, MD (Montgomery Co.) charges $7,374 (state + county), DC charges $5,625. VA saves $2,438/year vs MD suburbs on income tax alone, and $689/year vs DC on income tax alone. Property taxes: VA 0.99% avg (NoVA), MD 1.12%, DC 0.60% (but DC homes cost 30% more to buy). Combined income+property at $100K + $400K home: VA $8,896, MD $11,854, DC $8,025 — VA still saves $2,958/year vs MD, but DC is actually $871/year CHEAPER than VA once its low property tax is factored in. Choose VA over MD every time; choose DC over VA if you want walkability and don't mind the higher home prices; choose MD only if Bethesda/Potomac schools justify the premium.
North Carolina wins on income tax: NC 3.99% flat ($3,481 at $100K) saves $1,455/year vs VA ($4,936). At $150K, NC saves $2,335/year vs VA ($7,811 vs $5,476). 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+ may claim an age deduction of up to $12,000 (reduced above $50K AGI for single filers). So a 65+ retiree with $50K total ($30K Social Security + $20K IRA) is taxed on the IRA income only, after the age deduction, standard deduction and exemptions, so Virginia taxable income can be close to zero. 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 for state purposes uses Virginia's own $8,750 standard deduction plus $930 personal exemption ($9,680 total) — the calculator applies $90,320 taxable income at $100K for state tax (federal taxable income is calculated separately using the $16,100 federal standard deduction). State tax at $100K: 2%×$3K + 3%×$2K + 5%×$12K + 5.75%×$73,320 = $4,936 (live-calculator-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+ age deduction (up to $12K, income-limited), 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