Virginia income tax runs from 2% to 5.75% across 4 brackets. At $100,000 income, a Virginia resident pays approximately $4,936 in state income tax (effective ~4.9%). Virginia has no local income tax — unlike Maryland (county taxes of about 2.25% to 3.3%) or DC (up to 10.75%). On state and local income tax alone, Virginia costs less than Maryland or DC at $100,000 and above.
None — no city or county income tax anywhere in Virginia
Property Tax
Rates are set by each locality; Fairfax County's real estate tax rate is $1.12 per $100 of assessed value (FY2027, from 1 July 2026)
Sales Tax
5.3% in most of the state (4.3% state + 1% local); 6% in Northern Virginia, Hampton Roads and Central Virginia
Introduction
Virginia's income tax system is relatively simple — 4 brackets with a top rate of 5.75% that has remained unchanged for decades. There is no local income tax anywhere in Virginia, making the state rate the total state+local income tax burden. This contrasts sharply with Maryland (where county income taxes add about 2.25% to 3.3%) and DC (where rates reach 10.75%).
Virginia is the largest US state by population that borders Washington DC, with Northern Virginia (Fairfax County, Arlington, Alexandria) among the wealthiest jurisdictions in the country. High federal government employment, defence contracting, and a major tech sector (Amazon HQ2 in Arlington) make Virginia's income tax policy particularly relevant to high earners.
Section 01
Virginia Income Tax: What You Pay at Every Income Level
Despite having 4 brackets, Virginia's top rate of 5.75% kicks in on income above just $17,000 — meaning virtually all working Virginians pay the top marginal rate on most of their income. The effective rate climbs from roughly 4% for lower earners to near 5.75% for high earners.
Sample tax at common income levels (single filer, $8,750 standard deduction, $930 personal exemption, taxable income = gross - $9,680):
$50,000 income: Taxable income ~$40,320. VA tax: ~$2,061. Effective rate: 4.1%
$75,000 income: Taxable income ~$65,320. VA tax: ~$3,498. Effective rate: 4.7%
$100,000 income: Taxable income ~$90,320. VA tax: ~$4,936. Effective rate: 4.9%
$150,000 income: Taxable income ~$140,320. VA tax: ~$7,811. Effective rate: 5.2%
$250,000 income: Taxable income ~$240,320. VA tax: ~$13,561. Effective rate: 5.4%
$500,000 income: Taxable income ~$490,320. VA tax: ~$27,936. Effective rate: 5.6%
Section 02
Virginia vs Maryland vs DC: The DMV Tax Comparison
For professionals in the DC metro area, the choice between Virginia, Maryland, and DC has substantial tax implications:
At $100,000 income, state/local income tax:
Virginia: ~$4,936 (state only, no local)
DC: ~$5,625 (DC income tax)
Maryland (Montgomery County): State ~$4,400 + County 3.2% (~$3,000) = ~$7,400 total
Virginia's advantage grows significantly at higher incomes. For a $500,000 earner, Virginia saves roughly $10,000–$15,500/year vs Maryland (depending on county) and about $13,500/year vs DC, purely on state/local income taxes.
Section 03
Northern Virginia: Amazon HQ2 and the High-Earner Market
Amazon's HQ2 in Arlington (National Landing) has concentrated high-earning tech workers in Northern Virginia — a market where Virginia's no-local-income-tax rule is particularly valuable. Salaries of $150,000–$300,000 represent roughly a $2,000–$8,500 annual state-and-local income tax advantage over DC or Maryland (Montgomery County).
Northern Virginia property taxes: Fairfax County's real estate tax rate is $1.12 per $100 of assessed value (FY2027). A home assessed at $600,000 has an annual property tax of approximately $6,720 at that rate.
Sales tax in Northern Virginia: Northern Virginia has a higher combined sales tax (6%) than most of Virginia (5.3%) due to an additional regional tax. This applies in Fairfax, Arlington, Alexandria, and adjacent Northern Virginia jurisdictions.
Section 04
Virginia Tax on Retirement Income
Virginia provides significant deductions for retirement income, making it competitive for retirees:
Social Security: Fully exempt from Virginia income tax
Military retirement pay: Up to $40,000 of eligible military benefits can be subtracted (tax year 2025 and later, at any age)
Government pension: Included in taxable income; the Age Deduction (below) may apply
Private pension/IRA: Included in taxable income, but the Age Deduction allows up to $12,000 for residents 65 and older, reduced $1 for every $1 of income above $50,000 (single) or $75,000 (married)
Virginia is frequently ranked among the top 10 states for military retirees and among the better states for retirees generally, due to the Social Security exemption, military retirement subtraction, and moderate overall tax burden.
Navigating state income tax — especially if you are relocating, have multi-state income, or are planning retirement — benefits from professional CPA guidance. TaxHub connects you with licensed tax professionals.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Virginia has 4 income tax brackets: 2% (up to $3,000), 3% ($3,001–$5,000), 5% ($5,001–$17,000), and 5.75% on all income above $17,000. Because the top rate kicks in at only $17,000, virtually all working Virginians pay 5.75% on the vast majority of their income. The standard deduction is $8,750 (single) and $17,500 (married).
Q
Does Virginia have local income taxes?
No. Virginia has no city or county income taxes anywhere in the state. The state rate (up to 5.75%) is the entire state and local income tax burden — unlike Maryland (county taxes of about 2.25% to 3.3%) or Washington DC (up to 10.75%).
Q
Is Virginia income tax higher than Maryland?
For most income levels, Virginia's combined state+local income tax is lower than Maryland's. At $100,000, Virginia residents pay about $4,936 vs Maryland residents in Montgomery County paying about $7,400 (state + 3.2% county). At higher incomes the gap widens further.
Q
Does Virginia tax Social Security benefits?
No. Virginia does not tax Social Security benefits, making it attractive for retirees. Up to $40,000 of military retirement pay can also be subtracted for tax year 2025 and later, at any age.
Q
What is the Virginia standard deduction?
Virginia's standard deduction is $8,750 for single filers and $17,500 for married filing jointly (2026). This is lower than the federal standard deduction ($16,100/$32,200) — Virginia does not conform to the federal standard deduction amount.
Q
What are property taxes like in Northern Virginia?
Northern Virginia property taxes are moderate relative to comparable high-cost metro areas. Fairfax County's real estate tax rate is $1.12 per $100 of assessed value (FY2027) — a home assessed at $600,000 would cost approximately $6,720/year in property tax. These rates are set by each county and can change with budget decisions.
Disclaimer:This guide is for educational purposes only and does not constitute tax or legal advice. Tax rates and rules change annually. Consult a qualified CPA or tax attorney for advice specific to your situation.