Insurance Premiums
Virginia Paycheck Results
Calculating your paycheck…
Tax Breakdown
Deduction Breakdown
Virginia State Income Tax Information
Virginia employs a progressive income tax system with four brackets:
- 2.00% on income up to $3,000
- 3.00% on income between $3,001 and $5,000
- 5.00% on income between $5,001 and $17,000
- 5.75% on income over $17,000
For example, a taxable income of $50,000 would be taxed as follows:
- 2.00% on the first $3,000: $60
- 3.00% on the next $2,000: $60
- 5.00% on the next $12,000: $600
- 5.75% on the remaining $33,000: $1,897.50
Total tax: $2,617.50
Standard Deduction
For the 2025 tax year, Virginia’s standard deduction amounts are:
- Single: $8,750
- Married Filing Jointly: $17,500
These amounts are permanent increases from previous years.
Retirement Income
Virginia offers a subtraction for military retirement income:
- Up to $40,000 of military retirement income is exempt from state income tax for tax years 2025 and beyond. This applies regardless of age or income level. Source
Other retirement income, such as Social Security benefits, is subject to state income tax.
FICA Taxes
Virginia follows federal FICA tax rates:
- Social Security: 6.20% on income up to $176,100
- Medicare: 1.45% on all income
- Additional Medicare Tax: 0.9% on income over $200,000 (single) / $250,000 (married)
Total FICA tax rate: 7.65% on income up to $176,100, plus 0.9% on income over $200,000 (single) / $250,000 (married).
Pre-Tax Deductions
Virginia allows various pre-tax deductions, including contributions to:
- Health Savings Accounts (HSAs)
- Flexible Spending Accounts (FSAs)
- 401(k) and 403(b) retirement plans
- Dependent Care Assistance Programs
These deductions reduce taxable income and can lower state income tax liability.
Tax Credits
Virginia offers several tax credits to eligible residents:
- Virginia Earned Income Tax Credit (EITC): A refundable credit equal to 20% of the federal EITC for tax year 2025. Source
- Low-Income Individuals Credit: A nonrefundable credit available to low-income taxpayers. Source
- Credit for Taxes Paid to Another State: A credit for taxes paid to another state to avoid double taxation. Source
Eligibility and credit amounts vary based on income, filing status, and other factors.
Interesting Facts About Virginia Taxes
- Virginia’s income tax system is progressive, with rates ranging from 2.00% to 5.75%. Source
- The state does not impose a sales tax on food for home consumption, but it does tax prepared food and beverages. Source
- Virginia offers a variety of tax credits to encourage investment in areas such as education, housing, and environmental conservation. Source
Frequently Asked Questions (FAQs)
- Does Virginia tax Social Security benefits?
- Yes, Virginia taxes Social Security benefits as income. However, there are deductions available for seniors aged 65 and older. Source
- What is the standard deduction in Virginia?
- The standard deduction for tax year 2025 is $8,750 for single filers and $17,500 for married couples filing jointly. Source
- Are there tax credits available for renters in Virginia?
- Yes, Virginia offers a refundable Renter Credit to eligible renters. Source
- What types of retirement income are taxed in Virginia?
- Virginia taxes most forms of retirement income, including Social Security benefits, pensions, and 401(k) distributions. However, there are exemptions available for certain types of retirement income, such as military retirement pay. Source