Virginia's income tax uses a 4-bracket graduated structure from 2% to 5.75%, with the same thresholds for all filing statuses. The top 5.75% rate kicks in at just $17,000 of taxable income - one of the lowest top-bracket thresholds in the country. Virginia offers a standard deduction of $8,750 single / $17,500 MFJ (with a sunset provision), a $930 personal exemption per person, and a generous $12,000 age deduction for taxpayers 65 and older. Virginia does not tax Social Security and has no local income taxes. Groceries are taxed at a reduced 1% rate (local portion only).
Income Tax
2%–5.75% (4 brackets)
Standard Deduction (Single)
$8,750
Personal Exemption
$930 per person
Age Deduction (65+)
Up to $12,000
Virginia Income Tax Brackets 2026
Virginia applies the same 4-bracket rate schedule to all filing statuses. The top 5.75% rate applies to all income above $17,000 - a threshold that has remained unchanged for decades. This means most Virginia taxpayers with even moderate incomes pay the top marginal rate on the majority of their income.
Virginia Taxable Income (All Filing Statuses)
Rate
$0 – $3,000
2.00%
$3,000 – $5,000
3.00%
$5,000 – $17,000
5.00%
$17,000+
5.75%
Because the top bracket threshold is so low, Virginia's income tax is effectively a near-flat tax for most workers. A single filer earning $50,000 in taxable income pays the top 5.75% rate on $33,000 of that income. Virginia taxes capital gains as ordinary income at these same graduated rates.
Virginia Standard Deduction & Personal Exemption 2026
Virginia provides its own standard deduction and personal exemption. The current standard deduction amounts are temporarily elevated and are subject to a sunset provision:
Filing Status
Standard Deduction
Personal Exemption
Single
$8,750
$930
Married Filing Jointly
$17,500
$1,860
Married Filing Separately
$8,750
$930
Head of Household
$8,750
$930
Sunset warning: The current elevated standard deduction ($8,750 single / $17,500 MFJ) is scheduled to increase to $9,200/$18,400 for TY2027–2028 and $9,300/$18,600 for TY2028–2030, then sunset back to $3,000 single / $6,000 MFJ after 2029 under the 2026 Appropriation Act unless the legislature extends them. This sunset would significantly increase Virginia taxable income for most filers.
Virginia Age Deduction for Seniors 2026
Virginia provides a subtraction of up to $12,000 per qualifying person for taxpayers age 65 and older. The deduction is calculated based on AFAGI (federal AGI minus taxable Social Security benefits and Tier 1 Railroad Benefits):
Born on or before January 1, 1939: Full $12,000 deduction regardless of income
Born January 2, 1939 – January 1, 1960: $12,000 reduced dollar-for-dollar by AFAGI exceeding $50,000 (single) or $75,000 (MFJ)
Born after January 1, 1960: Not eligible (under age 65 for TY2025)
For a single filer born in 1950 with AFAGI of $55,000, the age deduction would be $12,000 minus ($55,000 – $50,000) = $7,000. The deduction phases out entirely at AFAGI of $62,000 (single) or $87,000 (MFJ).
Virginia Grocery Tax
Virginia taxes groceries at a reduced rate of 1.00%. The state portion of the grocery tax was eliminated effective January 1, 2023. The remaining 1.00% is the mandatory local portion that applies uniformly across all Virginia localities. This reduced rate covers food for home consumption and essential personal hygiene products.
Items taxed at the full general sales tax rate (not the reduced grocery rate): prepared hot foods, restaurant meals, alcoholic beverages, tobacco products, and dietary supplements.
Virginia uses a 4-bracket graduated income tax with the same thresholds for all filing statuses: 2% on the first $3,000; 3% on $3,000–$5,000; 5% on $5,000–$17,000; and 5.75% on all income above $17,000. Virginia's bracket thresholds are notably low - most Virginia taxpayers with any meaningful income hit the top 5.75% rate. These rates are statutory (Va. Code 58.1-320) and have not changed in decades.
What is Virginia's standard deduction and personal exemption for 2026?
Virginia's standard deduction is $8,750 for single filers and $17,500 for MFJ for TY2026. Virginia also provides a personal exemption of $930 per person ($1,860 for MFJ). Important sunset note: the current elevated standard deduction amounts are temporary. They are scheduled to increase slightly through TY2028–2030 and then sunset back to $3,000 single / $6,000 MFJ after 2029 under the 2026 Appropriation Act unless the legislature extends them.
Does Virginia tax groceries?
Yes, at a reduced rate of 1%. Virginia eliminated the state portion of its grocery tax effective January 1, 2023. The remaining 1% is the mandatory local portion that applies uniformly across all Virginia localities. This 1% tax applies to food for home consumption and essential personal hygiene products. Prepared hot foods, restaurant meals, alcoholic beverages, and tobacco are taxed at the full general sales tax rate (5.3% or higher depending on locality).
What is Virginia's age deduction for seniors?
Virginia provides an age deduction of up to $12,000 per person for taxpayers age 65 and older (born on or before January 1, 1960). The full deduction is available to those born on or before January 1, 1939. For those born between January 2, 1939 and January 1, 1960, the deduction is reduced dollar-for-dollar by the amount that AFAGI (federal AGI minus taxable Social Security and Tier 1 Railroad Benefits) exceeds $50,000 (single) or $75,000 (MFJ). At AFAGI of $62,000 (single) or $87,000 (MFJ), the deduction phases out entirely.
Does Virginia have local income taxes?
No. Virginia does not impose local income taxes. All Virginia residents pay the same 4-bracket graduated state income tax regardless of their city or county. Virginia's local revenue comes primarily from property taxes and the mandatory 1% local portion of sales tax. Some regions have additional sales tax increments: Northern Virginia, Hampton Roads, and Central Virginia localities add 0.7% for transportation, and the Williamsburg area has additional tourism-related taxes.
Does Virginia conform to the OBBBA tips and overtime deductions?
Virginia's OBBBA conformity status for tips, overtime, and senior bonus deductions is not yet confirmed. Virginia fixed its IRC conformity date at December 31, 2025, which captures OBBBA (2025 HR 1, P.L. 119-21). Tax Bulletin 26-1 confirms Virginia conforms to OBBBA provisions affecting federal AGI. However, specific DOR guidance on whether the OBBBA tip, overtime, and senior deductions flow through to Virginia has not been published. Notably, Virginia does not conform to OBBBA's Pease limitation changes - Virginia continues to apply the Pease limitation per Tax Bulletin 26-1. Virginia residents should monitor the Department of Taxation for additional guidance.
Does Virginia tax Social Security or pension income?
Virginia does not tax Social Security benefits. For pension and retirement income, Virginia provides the age deduction of up to $12,000 per person for taxpayers 65+, which can shelter a significant portion of retirement income. The age deduction phases out based on AFAGI - at higher income levels, retirees may not benefit from this deduction. Virginia taxes pension, 401(k), and IRA distributions as ordinary income at the 5.75% top rate to the extent they exceed available deductions and exemptions.
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