State Tax in Virginia

State tax laws can be confusing and are usually annoying to deal with, especially when so much time is spent preparing Federal Tax returns. If you have not filed these before, the following information on state tax in Virginia will help you know what you can expect. Taxes in the state of Virginia range from two to 5.75 per cent and there are four different tax brackets that you may be in that are used to determine how much you pay. There are four major types of taxes in the state as well: income, sales, property, and estate.

Income Tax

There are four different income brackets which will determine your state tax in Virginia. The different income brackets are as follows: two per cent on the first $3,000 worth of income, three per cent if earnings are between $3,001 to $5,000, five per cent on all taxable income that falls between $5,001 and $17,000, and finally, 5.75 per cent on all taxable income that is above $17,001. If you are a married filing joint, then these same brackets apply, only they are doubled. When you file your income tax in Virginia, you will use the form 760 and it is due by the first of May. If you need this form, or the instructions for it, it can be found and printed off of the Virginia Department of Taxation website.

Sales Tax in Virginia

State tax in Virginia wouldn't be complete without sales tax. The sales tax in this state happens to be four per cent on all purchases made. There is, however, an additional one per cent sales tax that goes to the local authorities. Therefore, the total sales tax in the state is five per cent. There is the occasional exception to the rule of course. For example, currently the sales tax on food in the state is only 1.5 per cent; and with the one per cent that is local, it is a total of 2.5 per cent.

Property and Estate Tax Laws

The good news about state tax in Virginia is that there is no property tax collected in the state. Property tax can be taken out at the local level though; this per centage varies depending on where you live in the state. Also, Virginia does not collect inheritance or estate taxes. Keep in mind that this was not always the case. This is the result of a law, House Bill 5018, that was passed in 2007 that repealed the estate tax in the state.

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