Virginia taxes personal income at 2% to 5.75%, and the top rate starts at $17,000 of taxable income for every filer. Social Security is not taxed, and there is no local income tax. A sole proprietor owes nothing at the business level. An LLC pays a $50 annual registration fee. Partnerships and S corporations file a pass-through return, and C corporations pay 6% corporate income tax.
Personal income tax
Virginia residents file Form 760. The rate is 2% on the first $3,000, 3% on the next $2,000, 5% on the next $12,000, 5.75% on everything above $17,000 of taxable income. The steps are the same for every filing status, so married couples filing jointly can claim a spouse tax adjustment of up to $259 to make up for it.
If you took the standard deduction on your federal return, you must take it on your Virginia return too. It is $8,750 for single filers and $17,500 for married couples filing jointly. Each person on the return also gets a $930 exemption, plus $800 more for being 65 or older or blind.
If your Virginia adjusted gross income is below $11,950 ($23,900 married filing jointly), your Virginia tax is zero. Social Security is not taxed, and Virginia has no local income tax.
- Return
- Form 760
- Rates
- 2%, 3%, 5%, 5.75%
- Standard deduction
- $8,750 single, head of household or married filing separately, $17,500 married filing jointly
- Exemptions
- $930 per person, plus $800 for age 65 or older or blindness
- No tax
- Virginia adjusted gross income below $11,950, or $23,900 married filing jointly
- Not taxed
- Social Security and Tier 1 Railroad Retirement benefits
- Age deduction
- Up to $12,000 per person born before 1961. It shrinks dollar for dollar above $50,000 of income ($75,000 married), measured after Social Security is taken out, except for anyone born on or before January 1, 1939
- Earned income credit
- 20% of the federal credit, refundable
- Local income tax
- None
Sole proprietor
A sole proprietor with no LLC owes Virginia nothing at the business level and has nothing to file with the State Corporation Commission. The annual registration fee is only for registered entities.
Your business profit is taxed on your own Form 760.
Single-member LLC
A Virginia LLC pays a $50 annual registration fee every year after the year it was formed, whatever it earned. It is due by the last day of the month the LLC was formed in. There is no annual report to file with it: the payment is the filing.
Paying late adds a penalty. If the fee is still unpaid three months after it was due, Virginia cancels the LLC automatically. The LLC's profit is taxed on your own Form 760.
Partnership
A Virginia partnership files Form 502, the pass-through entity return. The profit passes through to the partners, who report it on their own returns.
If any partner lives outside Virginia, the partnership must withhold five percent of that partner's Virginia income and pay it to Virginia by the return's original due date, even if the return itself is extended. Filing a unified return that covers those partners removes the withholding.
S corporation
A Virginia S corporation files the same Form 502, the pass-through entity return. The profit passes through to the shareholders, who report it on their own returns.
The same withholding applies to shareholders who live outside Virginia: five percent of their Virginia income, due by the return's original due date, unless a unified return covers them.
C corporation
A C corporation files Form 500 and pays 6% of its Virginia taxable income.
A corporation doing business in other states counts only its Virginia share. Virginia works this out by adding the corporation's Virginia share of property, its Virginia share of payroll and twice its Virginia share of sales, then dividing by four. Only qualifying manufacturers can elect to use sales alone.
- Return
- Form 500
- Corporate income tax
- 6% of Virginia taxable income
- Multi-state profit
- Property, payroll and double-weighted sales, divided by four
Estimate your state tax
Pick your business type and enter this year's numbers to see the state business tax Virginia charges. It assumes all your sales are in Virginia.
An estimate for planning, not tax advice.
Sources
- Virginia Form 760 Resident Individual Income Tax Instructions, 2025
- Virginia Form 760, 2025
- tax.virginia.gov Pass-Through Entities
- tax.virginia.gov Instructions for Preparing Form 502
- tax.virginia.gov Form 502W, Pass-Through Entity Withholding Tax Payment
- tax.virginia.gov 2025 Schedule 500A Instructions, Three-Factor Formula
- tax.virginia.gov Corporation Income Tax
- tax.virginia.gov Corporate Apportionment for Manufacturers Guidelines
Last reviewed August 2026.
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