Virginia Estate and Inheritance Tax: Neither Exists Now

Virginia is not one of the states that taxes what you leave or what you inherit. The Virginia Department of Taxation says so directly, and the only wrinkle is a narrow legacy rule for certain old remainder interests.

This guide sets out what Virginia Tax says about the estate and inheritance taxes, the probate tax that Virginia does charge, and the federal estate tax that can still reach very large estates, using Virginia Tax, a Tax Commissioner ruling and the IRS, read on 2 November 2026.

What Virginia Tax Says

The Virginia Department of Taxation states: "Today, Virginia no longer has an estate tax or inheritance tax." Prior to 1 July 2007, Virginia had an estate tax that was equal to the federal credit for state death taxes. With the elimination of that federal credit, the Virginia estate tax was effectively repealed.

So there is no Virginia estate tax return to file and, apart from the narrow exception below, no Virginia inheritance tax for heirs to pay.

The Narrow Legacy Exception

Virginia Tax adds one caveat: certain remainder interests are still subject to the inheritance tax. A Tax Commissioner ruling (Public Document 15-93, 30 April 2015) explains the history. The old inheritance tax was replaced by an estate tax effective 1 January 1980, but it continued to apply to remainder interests on which it had been postponed. In that ruling, the surviving spouse died in 2013 and the remainder interest in the marital trust became subject to the postponed inheritance tax.

This concerns trusts of that old kind, where the tax was postponed until a life interest ended. The ruling also says that if Congress reinstated the federal credit for state estate taxes, certain remainder interests would again be subject to the Virginia estate tax, and that Code of Virginia sections 58.1-900 through 58.1-938 do not currently impose a tax.

What Virginia Does Charge: Probate Tax

The probate tax is not an estate or inheritance tax, but it is the Virginia charge most families meet. It is imposed on the probate of most wills and grants of administration and applies to property in Virginia.

• Rate: 10 cents per $100 on estates valued at more than $15,000, including the first $15,000 of assets. No tax is imposed on estates valued at $15,000 or less. Localities may also impose a local probate tax equal to 1/3 of the state probate tax.
• Not taxed: property passing by the exercise of a power of appointment, jointly held property with right of survivorship, insurance proceeds payable to a named beneficiary other than the estate, and bonds payable on death to a named beneficiary. Property owned as tenants in common (to the extent of the decedent's interest) and property passed through a will are taxed.
• Residents and nonresidents: for a resident decedent, intangible personal property such as bank accounts and stocks is subject to the tax wherever it is located; for a nonresident decedent, the tax does not apply to intangible personal property.
• When and where: returns and inventories go to the circuit court for the locality where the decedent lived, and the tax is paid when the will is presented for probate or administration is sought.
• List of heirs: a $25 fee applies to recording a list of heirs or a specified affidavit, and the locality may add a further $25.

The Federal Estate Tax Still Applies

No state tax does not mean no estate tax. The IRS says the Working Families Tax Cuts Bill, signed into law on 4 July 2025, increased the basic exclusion amount to $15,000,000 for calendar year 2026. The IRS also states that estates of decedents survived by a spouse may elect to pass any of the decedent's unused exclusion to the surviving spouse (portability), and it lists Form 706 as the United States Estate (and Generation-Skipping Transfer) Tax Return.

Property in another state is a separate question: that state's own rules apply to real estate or tangible property located there. See our state lists below.

Worked Example (our illustration)

These are our arithmetic on Virginia Tax's stated rate, not an official calculation. Whether a locality imposes the local portion, and which assets count, must be checked with the circuit court.

Official Sources

• Virginia Tax: Estate and Inheritance Taxes
• Virginia Tax: Probate Tax
• Virginia Tax: Ruling of the Tax Commissioner 15-93 (30 April 2015)
• IRS: What's new - Estate and gift tax