What Changes in Your Paycheck in Virginia
Your paycheck in Virginia shows a Virginia state income tax line item that grows progressively with income, starting at 2% for the first $1. However, because the brackets are compressed at the bottom, most middle and high earners quickly reach the 5.75% rate on most of their income. For a $1 salary, you might see ~ $1-$1 annually (~ $1-$1 per biweekly paycheck) for state tax, reflecting that most income is taxed at 5.75%. Virginia paychecks only show state and federal tax deductions—no local income tax line items. The progressive brackets mean your state tax increases as you move through the low brackets, but most taxpayers reach the 5.75% rate quickly due to the compressed bracket structure.
Example State Tax in Virginia
What you'll pay in Virginia state income tax at different salary levels (single filer, no deductions):
| Gross Salary | State Tax (Year) | Effective Rate |
|---|---|---|
| $50,000 | $2,618 | 5.2% |
| $75,000 | $4,055 | 5.4% |
| $100,000 | $5,493 | 5.5% |
| $150,000 | $8,368 | 5.6% |
Use the calculator above to see your exact take-home pay with your filing status and deductions.
Understanding Virginia Taxes
Who Benefits
Virginia works best for lower-income earners (under ~ $1 for singles, $1 for couples) who benefit from the progressive brackets with lower starting rates (2%-5%). At these income levels, effective state tax rates are 2%-4%, which can be competitive with or lower than flat-tax states Retirees 65+ also benefit from exemptions on Social Security and most retirement income, plus the low starting brackets help retirees with lower fixed incomes.
Who May Not Benefit
Virginia is challenging for middle-high and high earners (~ $1+ for singles, $1+ for couples) because the compressed brackets mean most of their income is taxed at the top 5.75% rate. Someone earning $1 in Virginia pays an effective rate around 5.6%-5.7% (~ $1-$1 annually), while the same earner in a flat-tax state like Pennsylvania would pay $1 (3.07% flat, though PA may have local EIT), and in North Carolina would pay $1 (4.75% flat). High earners with geographic flexibility save $1-$1+ annually by moving to flat-tax or zero-tax states.
Key Facts That Affect Your Take-Home Pay
- Virginia uses a progressive income tax system with four brackets, starting at 2% for the first $1 of income and escalating to a top rate of 5.75% for income above $1 (for all filing statuses), making Virginia's top rate relatively moderate compared to high-tax progressive states.
- Virginia's progressive brackets are compressed at the bottom, meaning the first three brackets cover relatively low dollar amounts ($1-$1), so most middle and high earners quickly reach the top 5.75% rate. For a $1 earner, ~ $1+ of income is taxed at 5.75%, making the effective rate very close to the top bracket rate.
- Virginia does not impose income taxes at city or county levels, so your withholding remains consistent statewide. All Virginians have the same income tax structure—only the state progressive brackets apply.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay high rates in Virginia.' Reality: Virginia's progressive system starts at just 2% for the first $1 of income, and the top rate is 5.75%—lower than many flat-tax states like Illinois (4.95%) or Michigan (4.25%) for high earners, though the compressed brackets mean most middle and high earners reach 5.75% quickly. Someone earning $1 pays an effective rate around 5.6%-5.7% (~ $1 annually), while the same earner in a flat-tax state like North Carolina would pay $1 (4.75% flat).
Misconception: 'The brackets mean my tax is spread out across different rates.' Reality: Virginia's brackets are compressed at the bottom, meaning the first three brackets cover relatively low dollar amounts ($1-$1). For most taxpayers earning above $1-$1, virtually all income above the first bracket is taxed at 5% or 5.75%. A $1 earner pays 5.75% on ~ $1+ of their income, making their effective rate very close to the top bracket rate.
Misconception: 'No local taxes means Virginia is cheaper than other states.' While Virginia avoids local income tax complications, the 5.75% top rate combined with sales taxes (5.3%-6% in many areas) and property taxes can still create a significant tax burden. A high earner in Virginia pays 5.75% income tax on most of their income, while a high earner in a flat-tax state like Pennsylvania pays 3.07% state (though PA may have local EIT). Factor in all taxes when comparing states.
One Thing to Know
Virginia's compressed brackets mean most earners hit the 5.75% top rate quickly, making the effective rate higher than the 2% starting rate suggests. The 5.75% rate is significantly higher than neighboring states like North Carolina (4.75% flat) or West Virginia (6.5% top), which surprises people who assume all Mid-Atlantic states have similar tax structures.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Virginia tax laws.