No, Virginia is not a no-tax state. It levies a graduated individual income tax ranging from 2.0% to 5.75%, a 6.0% corporate income tax, and a combined state/local sales tax of roughly 5.77%. Residents and certain non-residents must file returns on income earned in the state.
The State of Virginia levies an income tax on all income earned by Virginia residents, whether actual or legal residents, or Virginia Income earned by non-residents or part-year residents. The tax is based on the Federal Adjusted Gross Income.
Key Takeaways
Nine U.S. states levy no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Sales, property, and excise taxes can be higher in states with no income tax as a trade-off to fund important government services.
On a $100,000 salary in Virginia, you'd pay roughly $22,000 - $28,000 in total taxes (federal, state, FICA), leaving about $72,000 - $78,000 in take-home pay, with specific amounts depending on filing status (single/married), deductions, and exact tax year calculations for federal income tax. Expect around $5,000-$5,500 for Virginia state tax, plus federal income tax and FICA (Social Security/Medicare).
Virginia also has a 5.30 percent state sales tax rate, a 1 percent mandatory, statewide, local add-on sales tax rate, and an average combined state and local sales tax rate of 5.77 percent. Virginia has a 0.77 percent effective property tax rate on owner-occupied housing value.
No, Virginia is generally not considered a high-tax state overall, ranking around average nationally, but its tax system has mixed features: relatively low sales and property taxes, but a moderately high top income tax rate that kicks in early, making it feel higher for many residents, especially compared to neighbors like Maryland. Its ranking on the Tax Foundation's 2026 State Tax Competitiveness Index is 30th, indicating a middle-of-the-road tax environment.
Virginia has grown increasingly reliant on individual income taxes to fund state government. The $17.2 billion collected in fiscal year 2021 amounted to 70% of the state's general fund revenue, up from 63% in 2000. Corporate income taxes made up 6% of general fund revenue in fiscal 2021, according to JLARC.
While ZipRecruiter is seeing salaries as high as $159,010 and as low as $52,030, the majority of 120K salaries currently range between $99,684 (25th percentile) to $116,703 (75th percentile) with top earners (90th percentile) making $133,723 annually in Virginia.
To buy a house, you generally need an income that allows for housing costs (mortgage, taxes, insurance) to be around 28-36% of your gross monthly income, but recent studies show buyers often need $100k+ annual income to afford a median-priced home due to rising prices and rates, with specific requirements varying by location and loan type. A common guideline is the 28/36 rule: spend no more than 28% on housing and 36% on total debt, but lenders look at your Debt-to-Income (DTI) ratio, ideally keeping total debt under 43%.
States with lowest income tax, excluding no income tax states
Free federal and state filing
For anyone with an AGI under $51,000. If you don't qualify, your federal return is free and state filing is $15.99.
Housing, transportation, and daily expenses may stretch budgets for many residents. This high cost is particularly noticeable near Washington, D.C., making it challenging for families and young professionals. For those seeking affordability, Virginia's living expenses may be a drawback.
Virginia is moderately tax-friendly, especially for retirees, due to exempting Social Security, offering significant deductions for other retirement income, and having below-average property taxes, but it does have a graduated income tax and taxes other retirement income like pensions and IRAs, though with deductions available for seniors. It ranks in the middle for overall tax competitiveness but is attractive for those prioritizing low property tax and Social Security benefits.
Nine U.S. states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, though Washington does tax long-term capital gains, and New Hampshire is phasing out its interest/dividend tax. However, a lack of income tax doesn't mean lower overall taxes, as these states often rely on higher sales, property, or other specific taxes, like Florida's high homeowners' insurance or Texas's property taxes, to fund services, so consider the total tax burden, not just income tax.
30 Dollars Per Hour Salary in Virginia. $81.4K is the 25th percentile. Wages below this are outliers. The median wage is $104.1K / yr.
CHART OF THE DAY: Because Virginia is growing – Virginia has jobs! With nearly 270,000 jobs filled in the last four years, 255,000 jobs open today, and $157 billion in private business investment bringing a total of 135,000 long-term and construction jobs, we're at 650,000 jobs connected to Virginia's dynamic growth.
Virginia's arms and defense manufacturing industry contributes significantly to the state's economy, providing thousands of high-paying jobs and generating billions of dollars in economic activity.
There are several ways to reduce tax bills and pay no taxes legally, and one of the easiest ways is to take full advantage of a self-employment tax deduction scheme. In the US, this deduction allows you to deduct a portion of your self-employed income from your taxable profit, provided there are allowable expenses.
Virginia has a graduated income tax with four brackets, ranging from 2% to 5.75%, with the top rate applying to taxable income over $17,000 (for single filers). The structure is progressive, meaning lower incomes are taxed at lower rates, with specific rates for different income segments: 2% on the first $3,000, then 3%, 5%, and finally 5.75% on income above $17,000.