HomeFinanceVirginia State Income Tax: Rates and Who Pays in 2021

Virginia State Income Tax: Rates and Who Pays in 2021

Virginia state earnings tax charges are 2%, 3%, 5% and 5.75%. Virginia state earnings tax brackets and earnings tax charges depend upon taxable earnings and residency standing.

Virginia state earnings tax charges and tax brackets

$60 plus 3% of the quantity over $3,000.

$120 plus 5% of the quantity over $5,000.

$720 plus 5.75% of the quantity over $17,000.

Do I’ve to pay Virginia state earnings tax?

Generally, it’s a must to file a Virginia state earnings tax return if:

  • You’re a resident, part-year resident or nonresident, and

  • You’re required to file a federal tax return, and

Am I a resident for Virginia state earnings tax functions?

There are three kinds of residency statuses on the subject of Virginia state earnings tax. They decide what portion of your earnings the state will tax.

Resident standing guidelines

In normal, you’re a resident of Virginia for earnings tax functions if you happen to have been bodily current there, lived there or had a spot there (a “place of abode”) for greater than 183 days (the times don’t must be consecutive) in the course of the tax 12 months. Residents file Form 760.

Here are some examples of conditions that may make you a Virginia resident for tax functions, in accordance with the state:

  • You spend greater than 183 days in Virginia in the course of the tax 12 months.

  • You’re a resident of one other state however go to school in Virginia.

  • You’re a resident of Virginia however go to school in one other state.

Part-year resident standing guidelines

Generally, you’re a part-year resident of Virginia if you happen to have been a nonresident for a number of the tax 12 months. This is usually the case for individuals who moved to Virginia from one other state.

If you’re a part-year resident, you sometimes pay Virginia state tax on all earnings you acquired in the course of the a part of the tax 12 months you have been a resident of Virginia, plus state earnings tax on earnings from Virginia sources when you have been a nonresident. Part-year residents file Form 760-PY.

Nonresident standing guidelines

Nonresidents nonetheless could must pay Virginia state tax on earnings they obtain from Virginia sources. This means chances are you’ll have to file a Virginia state tax return even if you happen to reside in one other state however made cash from Virginia-related issues akin to:

  • Services carried out in Virginia.

  • Rent from actual property you personal in Virginia.

  • The sale or switch of actual property in Virginia.

  • Income from a Virginia enterprise, commerce or career.

Virginia Commuters. If you’re a nonresident of Virginia and you commute to Virginia from Kentucky or Washington, D.C., you don’t must file a Virginia tax return if you happen to don’t have a spot in Virginia and your solely earnings from Virginia is salaries and wages which are taxable in Kentucky or Washington, D.C.

If you’re a nonresident of Virginia and you commute to Virginia from Maryland, Pennsylvania or West Virginia, you don’t must file a Virginia tax return in case your solely earnings from Virginia is salaries and wages which are taxable in Maryland, Pennsylvania or West Virginia.

Military Members. When it involves service members, tax guidelines can get complicated. In Virginia, members of the U.S. army who’re authorized residents of one other state are usually categorised as nonresidents, even when they’re stationed in Virginia for years. For extra particulars, you may examine Virginia army tax guidelines, exemptions and aid.

What’s the submitting deadline for my Virginia state earnings tax invoice?

The deadline to file your 2020 particular person earnings taxes in Virginia was the identical because the federal tax deadline: May 17, 2021. If you missed the May due date, you might be able to make the most of Virginia’s automated extension, which supplies most Virginia taxpayers till Nov. 1 — a further 6 months — to file with no utility required.

Remember although, a tax extension comes with a price ticket if you happen to don’t learn the effective print. Extensions don’t provide you with extra time to pay your taxes; they solely provide you with extra time to file your return. If you are going to make the most of the extension, you’ll nonetheless have to pay your estimated tax invoice by the unique deadline in order to keep away from late-filing penalties or curiosity.

The deadline for submitting subsequent 12 months’s taxes — your 2021 return — is April 15, 2022.

6 issues to find out about Virginia state earnings tax

  1. Tax software program will do your state taxes, although generally for an additional price.

  2. Virginia has reciprocity with Kentucky, Maryland, Pennsylvania, West Virginia and Washington, D.C. That means Virginia residents with a “limited presence” in these states are taxed solely by Virginia, and residents of the opposite states who’ve a restricted presence in Virginia are solely taxed by their dwelling states.

  3. If you may’t afford your tax invoice and owe lower than $25,000, Virginia gives cost plans which you can arrange on-line or over the cellphone.

Find the tax aid firm that is finest for you

We’ve weighed the professionals and cons of some main gamers in the area.

  • Free preliminary session.

  • $325 investigation charges. (NerdWallet customers get 50% off these charges through the use of the code NERD50.)

  • $750-$5,000 decision charges; $3,000 common.

  • Phone, electronic mail, mail and on-line portal.

  • Refunds doable however considerably restricted.

  • Free preliminary session.

  • $1,500-$4,000 decision charges (on common; will depend on case specifics).

  • Phone, electronic mail, mail and on-line portal.

  • Refunds solely inside 15 days of enrollment.

  • Free preliminary session.

  • Average decision charges just below $1,500 per the corporate.

  • Some case managers are additionally enrolled brokers or CPAs.

  • Phone, electronic mail, mail and chat through on-line portal.

  • Refunds doable however considerably restricted.

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