Filing Virginia State Taxes

The tax rates in the state of Virginia range from 2% to 5.75 and are assessed over four income tax brackets.

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Personal Income Tax

• You need to pay 2% on the first $3,000 of taxable income.
• You need to pay 3% on taxable income between $3,001 and $5,000.
• You need to pay 5% on taxable income between $5,001 and $17,000.
• You need to pay 5.75% on taxable income of more than $17,001.

For semi-permanent residents of Virginia, it is important that they file Form 760 (Resident Income Tax Return form) by May 1. If you are facing any problem with forms and details, go to the website of Virginia the Department of Taxation.

Sales Tax

The sales tax and use tax rate in the state of Virginia is 4%. You need to pay an additional 1% local tax, for a total of a 5% combined sales tax on the majority of Virginia purchases. Residents of Virginia incur the use tax when they buy more than $100 worth of items in a tax year for which they did not pay any sales tax. These kinds of transactions normally occur when you buy items from cable television shopping channels, the internet and mail order catalogues. The tax is also applicable to tax-free purchases out of state (e.g. furniture).

Personal and Real Estate Property Taxes

At the state level you do not need to pay any property tax in the state of Virginia. However, there is a provision of property tax at the local government level. Real estate in Virginia is taxed on the basis of fair market value. There is a variation in the effective true tax rates on real estate in Virginia. Tangible personal property in the state of Virginia is taxed at the local level on the basis of percentages of original cost.

Tangible personal property is not limited to furniture, automobiles, equipment and fixtures in Virginia. It is of the utmost importance that residents of Virginia file Form 762 (Return of Tangible Personal Property, Machinery and Tools, and Merchants' Capital) to handle this tax.

Inheritance Taxes

Unlike in other states, you do not need to pay any inheritance taxes in the state of Virginia.