Virginia State Income Tax Withholding
Last Updated: January 2026
Overview
Virginia uses a progressive income tax system with four tax brackets. The state recently increased the standard deduction temporarily through 2026 and requires employees to complete a state-specific withholding form.
2026 Tax Rates
| Taxable Income | Tax Rate |
|---|---|
| $0 - $3,000 | 2.00% |
| $3,001 - $5,000 | 3.00% |
| $5,001 - $17,000 | 5.00% |
| Over $17,000 | 5.75% |
Top Marginal Rate: 5.75%
Deductions and Exemptions
Standard Deduction (2026)
Note: These increased amounts are temporary and sunset after 2026.
| Filing Status | Amount (2026) | Permanent Amount |
|---|---|---|
| Single | $8,750 | $4,500 |
| Married Filing Jointly | $17,500 | $9,000 |
Important: Unless extended by the legislature, the standard deduction will revert to the lower amounts in 2027.
Personal Exemption
- Amount: $930 per exemption
- Age 65+ or Blind: Additional $800 exemption
Supplemental Wage Rate
- Supplemental wages: 5.75% (top marginal rate)
Special Considerations
- Form VA-4: Virginia REQUIRES employees to complete Form VA-4 for state withholding
- Local Income Taxes: Some Virginia localities levy additional income taxes (see below)
- Military Spouse Exemption: Military spouses may claim exemption from Virginia withholding
Local Income Taxes
Several Virginia localities impose local income taxes in addition to state tax:
| Locality | Type | Rate |
|---|---|---|
| All localities | Personal Property Tax | Varies (not withheld) |
| Some counties | Local Income Tax | Up to 1% |
Note: Most Virginia local taxes are property taxes, not income taxes withheld from payroll. However, some localities do have local income taxes that may require separate withholding or reporting.
Form VA-4 Requirements
Virginia requires employees to complete Form VA-4 to indicate:
- Filing status
- Number of personal exemptions
- Number of exemptions for age 65+ and blindness
- Additional withholding amounts
New Employees: Must submit Form VA-4 at the start of employment. Without a completed form, withhold at the single rate with zero exemptions.
Reciprocal Agreements
Virginia has reciprocal agreements with:
- District of Columbia
- Kentucky
- Maryland
- Pennsylvania
- West Virginia
Effect: Residents of these states working in Virginia are exempt from Virginia income tax withholding. They should complete Form VA-4 indicating exempt status.
Standard Deduction Sunset Warning
IMPORTANT FOR 2027 PLANNING:
The increased standard deduction amounts ($8,750 single / $17,500 MFJ) are scheduled to revert to the lower amounts ($4,500 / $9,000) after December 31, 2026.
Employers should:
- Monitor Virginia tax law updates
- Be prepared to adjust withholding calculations in January 2027
- Inform employees of potential changes to their take-home pay