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Virginia State Taxes


State Income Taxes in Virginia

The state of Virginia does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale whose range is from 2.0% to 5.75%.  The highest bracket, 5.75%, beings for income above $17,000.

State Business Taxes in Virginia

The state of Virginia has a flat Corporate Tax rate of 6.0% for all Corporate Income. For other business entities that are flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., since it flows-thru to the individual level, there is no business tax on those entities. In other words, the tax is accessed on C Corporations.

Gross Receipts Tax in Virginia

In addition to the Corporate Tax, the state of Virginia also imposes a Gross Receipts tax called the Business, Professional and Occupational License Tax (BPOL). The BPOL tax rate is levied locally per jurisdiction. Therefore, some jurisdiction may not have the tax. Depending on your jurisdiction and NAICS code (industry your business is in), the tax ranges from.02% to .58% of Gross Receipts.

Sales and Property Taxes in Virginia

Sales Tax – like many states, Virginia has multiple tax rates. One at the state level and another at the local level. The state rate is 5.30% the average local rate is .35% (total average rate for Virginia Sales Tax is 5.35%)

Property Taxes in Virginia – the average property tax rate for residential property in the state of Virginia is 0.86%, making it an inexpensive place to own property.

Payroll Taxes in Virginia

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Virginia has a wage base of $8,000 for 2020
  • UI Rates – range from 0.15% to 6.21%
  • Schedules – Virginia has multiple rate schedules regarding UI rates

Virginia Business Entities – LLCs

Virginia is inexpensive to to set up your LLC. Here are some important facts:

  • Virginia’s annual LLC fee is $50.
  • When you register with the state, you pay a one time fee of $100
  • Secretary of State of Virginia website – click here

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