Virginia Paycheck Calculator

Virginia's four brackets were set in 1990: 2% on the first $3,000, 3% to $5,000, 5% to $17,000, and 5.75% above that. The rates have not changed and, critically, the thresholds have never been indexed to inflation.

When the structure was designed, $17,000 was a meaningful income. Adjusted for inflation it would sit well above $40,000 today. The consequence is that a schedule intended to be progressive now catches nearly every full-time worker in its top band — someone earning $40,000 and someone earning $400,000 pay the same marginal rate on almost all of their income.

This matters when comparing Virginia with neighbouring states. On headline rates Virginia's 5.75% looks moderate against Maryland's 5.75% or DC's higher bands, but Virginia reaches its top rate far sooner than either, so middle earners can pay a higher effective rate than the comparison implies.

Virginia's standard deduction was increased significantly in recent years and now sits at $8,750 for single filers and $17,500 for married couples filing jointly. That is a real improvement on the historic figure, but it remains around half the federal standard deduction, so Virginia taxable income stays much closer to gross pay than the federal figure does.

Virginia also provides a personal exemption per taxpayer and dependant, which is small but not trivial for larger households.

On retirement, Virginia does not tax Social Security benefits. It offers an age deduction for taxpayers 65 and over, subject to an income-based reduction for higher earners, and a growing subtraction for military retirement pay — a meaningful provision in a state with as large a veteran population as Virginia's.

Virginia has reciprocal agreements with the District of Columbia, Maryland, Pennsylvania, West Virginia and Kentucky. If you live in Virginia and work in any of them, that jurisdiction does not tax your wages — you file a single Virginia resident return and pay Virginia only.

This is why the Northern Virginia commute works cleanly in tax terms despite crossing state lines daily. A Fairfax resident working in downtown DC pays Virginia rates, not DC's higher graduated ones, which is one reason Virginia suburbs are attractive to higher earners working in the District.

The reciprocity covers wages, not other income. Rental income from an out-of-state property, or self-employment income earned in another state, can still create a filing obligation there. And no Virginia locality levies an income tax, so within the state your withholding does not depend on where you live or work.