Use this skill whenever asked about Virginia individual income tax, Virginia Form 760, Virginia graduated tax rates, Virginia self-employment income tax at the state level, Virginia standard deduction, or any Virginia personal income tax question for sole proprietors. Trigger on phrases like "Virginia income tax", "VA income tax", "Form 760", "Virginia tax brackets", "Virginia 5.75%", "Virginia standard deduction", or any request involving Virginia state individual income tax computation or filing.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Jurisdiction
Virginia, United States
Jurisdiction code
US-VA
Tax type
Individual income tax
Rate structure
Graduated (4 brackets)
Rate range
2% – 5.75%
Primary form
Form 760 (Resident Individual Income Tax Return)
Governing statute
Virginia Code §58.1-320 et seq.
Tax authority
Virginia Department of Taxation
Filing portal
https://www.tax.virginia.gov
Tax year covered
2025 (filed 2026) and 2026 (filed 2027)
Last updated
May 22, 2026
Sources
| # | Source | URL | |---|--------|-----| | 1 | Virginia Department of Taxation — Income Tax | https://www.tax.virginia.gov/individual-income-tax | | 2 | 2025 Form 760 Instructions | https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf | | 3 | Virginia Code §58.1-320 — Tax rates | https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-320/ | | 4 | Tax Foundation — Virginia profile | https://taxfoundation.org/location/virginia/ |
Scope. This skill covers the Virginia individual income tax return (Form 760) for full-year Virginia residents who are sole proprietors or single-member LLC owners. It addresses the graduated rate computation, Virginia adjustments to federal AGI, the standard deduction, and Virginia-specific credits.
Quality tier. Q3 — AI-drafted, not independently verified. All rates and rules are sourced from the Virginia Department of Taxation publications and third-party research current as of May 2026. A licensed CPA or EA should verify before relying on this skill for filing.
Sources
| # | Source | URL |
|---|---|---|
| 1 | Virginia Department of Taxation — Income Tax | https://www.tax.virginia.gov/individual-income-tax |
| 2 | 2025 Form 760 Instructions | https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf |
| 3 | Virginia Code §58.1-320 — Tax rates | https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-320/ |
| 4 | Tax Foundation — Virginia profile | https://taxfoundation.org/location/virginia/ |
Tax brackets (2025 and 2026 — same rates, all filing statuses)
| Taxable income bracket | Marginal rate | Tax on prior brackets |
|---|---|---|
| $0 – $3,000 | 2% | $0 |
| $3,001 – $5,000 | 3% | $60 |
| $5,001 – $17,000 | 5% | $120 |
| $17,001 and above | 5.75% | $720 |
Standard deduction (2025 tax year, filed 2026)
| Filing status | Standard deduction |
|---|---|
| Single | $8,500 |
| Married filing jointly | $17,000 |
| Married filing separately | $8,500 |
Standard deduction (2026 tax year, filed 2027)
| Filing status | Standard deduction |
|---|---|
| Single / HoH | $8,750 |
| Married filing jointly | $17,500 |
| Married filing separately | $8,750 |
Note: The increased standard deduction is scheduled to sunset after TY 2026, reverting to $3,000 (single) / $6,000 (MFJ) unless extended by the General Assembly.
Personal exemptions (2025 and 2026)
| Item | Amount |
|---|---|
| Personal exemption — each taxpayer | $930 |
| Personal exemption — each dependent | $930 |
| Age 65+ additional exemption | $800 per person |
| Blind additional exemption | $800 per person |
Other key thresholds
| Item | Amount | Source |
|---|---|---|
| Filing threshold (single, under 65) | $11,950 (based on federal filing requirement) | Form 760-I |
| Extension deadline | November 1 (automatic 6-month from May 1) | Va. Code §58.1-344 |
| Filing due date | May 1 (Virginia's unique deadline) | Va. Code §58.1-341 |
| State sales tax rate (general) | 5.3% (4.3% state + 1% local) | Va. Code §58.1-603 |
| Sales tax — Hampton Roads / Northern VA | 6.0% (additional 0.7% regional) | Va. Code §58.1-603.1 |
Virginia starts from federal adjusted gross income (FAGI) — Form 1040, Line 11. This is BEFORE the federal standard deduction and QBI deduction.
Flow:
Key structural point: Because Virginia starts from federal AGI, the federal standard deduction is NOT already baked in. Virginia applies its own (typically larger) standard deduction. The QBI deduction (§199A) is also NOT included in the starting point — it does not exist for Virginia purposes.
Supplier pattern library
| Income/deduction type | Virginia treatment | Notes |
|---|---|---|
| Schedule C net profit | Included via federal AGI | No adjustment |
| Self-employment tax deduction | Included via federal AGI reduction | No adjustment |
| SEP/SIMPLE/solo 401(k) | Included via federal AGI reduction | No adjustment |
| QBI deduction (§199A) | NOT included — Virginia starts from AGI | VA taxable income is higher |
| Self-employed health insurance | Included via federal AGI reduction | No adjustment |
| Home office deduction | Included via Schedule C reduction | No adjustment |
| Social Security benefits | Partially/fully included (follows federal inclusion) | No VA subtraction for <65 |
| Out-of-state bond interest | Add to Virginia income | Not exempt for VA |
| Virginia bond interest | Subtract from Virginia income | Exempt |
| Federal tax refund | Not applicable (VA doesn't deduct federal tax) | N/A |
Form 760 line mapping
| Form 760 Line | Description | Source |
|---|---|---|
| Line 1 | Federal adjusted gross income (FAGI) | Form 1040, Line 11 |
| Line 2 | Additions (Schedule ADJ, Section A) | Computed |
| Line 3 | Adjusted FAGI (Line 1 + Line 2) | Computed |
| Line 6 | Subtractions (Schedule ADJ, Section B) | Computed |
| Line 7 | Virginia AGI (Line 3 − Line 6) | Computed |
| Line 9 | Deductions (standard or itemized) | Per filing method |
| Line 10 | Exemptions ($930 × number) | Computed |
| Line 11 | Virginia taxable income (Line 7 − 9 − 10) | Computed |
| Line 12 | Tax (from rate table) | Computed per brackets |
| Line 17 | Tax after credits | Computed |
| Line 22+ | Payments (withholding, estimated) | W-2s, vouchers |
Refusal catalogue
| ID | Refusal | Reason |
|---|---|---|
| R-VA-1 | Part-year resident return (Form 760PY) | Different form and allocation rules |
| R-VA-2 | Nonresident return (Form 763) | Different form and sourcing rules |
| R-VA-3 | Virginia corporate income tax | Different tax type (Form 500) |
| R-VA-4 | BPOL (local business license tax) | Local tax, not state-administered |
| R-VA-5 | Virginia estate/trust return | Different form (Form 770) |
| R-VA-6 | Land preservation / historic rehabilitation credits | Specialized credit computation |
| R-VA-7 | Amended returns (Form 760C / 760F) | Requires additional procedures |
| R-VA-8 | Pass-through entity tax (PTET) election | For multi-owner entities only |
This skill and its outputs are provided for informational and computational purposes only. They do not constitute tax advice, legal advice, or a substitute for the professional judgment of a qualified CPA, Enrolled Agent, or tax attorney. Tax law changes frequently; always verify rates, thresholds, and rules against current official sources before filing. The contributors and maintainers of OpenAccountants accept no liability for errors, omissions, or actions taken based on this content.
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Other Virginia computations in the OpenAccountants Tax Library.
Tax brackets (2025 and 2026 — same rates, all filing statuses)
| Taxable income bracket | Marginal rate | Tax on prior brackets | |------------------------|---------------|-----------------------| | $0 – $3,000 | 2% | $0 | | $3,001 – $5,000 | 3% | $60 | | $5,001 – $17,000 | 5% | $120 | | $17,001 and above | 5.75% | $720 |
Formula for taxable income over $17,000
Tax = $720 + 5.75% × (taxable income − $17,000)
Standard deduction (2025 tax year, filed 2026)
| Filing status | Standard deduction | |---------------|-------------------| | Single | $8,500 | | Married filing jointly | $17,000 | | Married filing separately | $8,500 |
Standard deduction (2026 tax year, filed 2027)
| Filing status | Standard deduction | |---------------|-------------------| | Single / HoH | $8,750 | | Married filing jointly | $17,500 | | Married filing separately | $8,750 |
Personal exemptions (2025 and 2026)
| Item | Amount | |------|--------| | Personal exemption — each taxpayer | $930 | | Personal exemption — each dependent | $930 | | Age 65+ additional exemption | $800 per person | | Blind additional exemption | $800 per person |
Other key thresholds
| Item | Amount | Source | |------|--------|--------| | Filing threshold (single, under 65) | $11,950 (based on federal filing requirement) | Form 760-I | | Extension deadline | November 1 (automatic 6-month from May 1) | Va. Code §58.1-344 | | Filing due date | May 1 (Virginia's unique deadline) | Va. Code §58.1-341 | | State sales tax rate (general) | 5.3% (4.3% state + 1% local) | Va. Code §58.1-603 | | Sales tax — Hampton Roads / Northern VA | 6.0% (additional 0.7% regional) | Va. Code §58.1-603.1 |
Self-employment tax deduction flow-through
The federal deduction for 50% of self-employment tax (Form 1040, Schedule 1, Line 15) reduces federal AGI. Since Virginia starts from federal AGI, this flows through automatically.Form 1040, Schedule 1, Line 15
Retirement contributions flow-through
SEP-IRA, SIMPLE IRA, and solo 401(k) contributions that reduce federal AGI flow through to Virginia automatically.
Self-employed health insurance deduction flow-through
The self-employed health insurance deduction (Schedule 1, Line 17) reduces federal AGI and flows through automatically.Schedule 1, Line 17
Virginia non-conformity to QBI deduction
Virginia does NOT conform to the federal QBI deduction. The §199A deduction reduces federal taxable income (after AGI) but since Virginia starts from AGI, it is not part of the Virginia computation. Virginia taxable income will be higher than federal taxable income by the QBI amount (all else equal).§199A
Home office deduction flow-through
Reduces Schedule C net profit → reduces federal AGI → flows through to Virginia.
Estimated tax payment requirement
Virginia requires estimated payments if the expected tax liability (after withholding and credits) will be $150 or more. Due dates: May 1, June 15, September 15, January 15. Note the first payment aligns with the May 1 filing deadline (not April 15).
[T1-VA-1] Tax computation
Apply the graduated rate table to Virginia taxable income: - First $3,000 × 2% = $60 - Next $2,000 × 3% = $60 - Next $12,000 × 5% = $600 - Remainder × 5.75%T1-VA-1
[T1-VA-2] Starting point
Begin with federal adjusted gross income from Form 1040, Line 11. Enter on Form 760, Line 1.T1-VA-2
[T1-VA-3] Virginia additions (Form 760, Line 2)
Common additions for self-employed: - Interest income from other states' obligations (tax-exempt federally but not for VA) - Certain fixed-date conformity additions (Virginia does not automatically conform to all post-2021 IRC changes)T1-VA-3
[T1-VA-4] Virginia subtractions (Form 760, Line 6)
Common subtractions: - First $20,000 of military pay (if applicable) - Virginia lottery winnings up to $600 (already reported federally) - Age deduction: up to $12,000 per taxpayer age 65+ (subject to income limits — phases out above $50,000 single / $75,000 MFJ AFAGI)T1-VA-4
[T1-VA-5] Deduction choice
Virginia requires the same deduction method as federal: if you claimed federal standard deduction, you must claim Virginia standard deduction. If you itemized federally, you must itemize for Virginia (using Virginia Schedule A, which largely mirrors federal but excludes state/local income tax deduction).T1-VA-5
[T1-VA-6] Filing due date
May 1 following the tax year (NOT April 15). For TY 2025, the deadline is May 1, 2026. Extension is automatic for 6 months to November 1.T1-VA-6
[T1-VA-7] Estimated tax payments
Required if expected liability exceeds $150 after withholding and credits. Quarterly dates: May 1, June 15, September 15, January 15.T1-VA-7
[T1-VA-8] Virginia Earned Income Credit
20% of the federal EIC amount, refundable, for TY 2025 and 2026 (Va. Code § 58.1-339.8; the earlier choice of a 20% nonrefundable or 15% refundable credit no longer applies for these years). Claimed on Schedule ADJ, Line 16b. BARRED if you or anyone on the return claims the age deduction (Va. Code § 58.1-322.02) or the additional exemption for age 65 or over or for blindness — claiming either one disqualifies the taxpayer from BOTH this credit and the Credit for Low-Income Individuals (2025 Form 760 instructions; https://www.tax.virginia.gov/low-income-individuals-credit). This credit and the Credit for Low-Income Individuals are also mutually exclusive: claim one, not both. Nonresidents and part-year residents may not claim the refundable version.T1-VA-8
[T2-VA-1] Residency determination
Virginia defines a resident as a person domiciled in Virginia or who maintains a place of abode in Virginia and is present for 183+ days. "Domicile" requires intent to remain permanently or indefinitely. Freelancers who split time between states should document domicile carefully.T2-VA-1
[T2-VA-2] Fixed-date conformity
Virginia conforms to the Internal Revenue Code as of a specific date set by the General Assembly (currently December 31, 2022 for most provisions). Federal tax law changes after that date may require Virginia additions or subtractions. Reviewer should check current conformity date for the filing year.T2-VA-2
[T2-VA-3] Multi-state credit
Virginia provides a credit for income taxes paid to other states on income also taxed by Virginia (Schedule OSC). The credit cannot exceed Virginia tax on the income sourced to the other state.T2-VA-3
[T2-VA-4] Standard deduction sunset
The enhanced standard deduction ($8,750 single / $17,500 MFJ for 2026) is scheduled to revert to $3,000 / $6,000 after TY 2026 unless the General Assembly acts. Reviewer should monitor this for future-year planning.T2-VA-4
[T2-VA-5] Business vs. hobby
Virginia follows the federal §183 determination. If Schedule C activity is reclassified as hobby by IRS, Virginia follows.T2-VA-5
Supplier pattern library
| Income/deduction type | Virginia treatment | Notes | |----------------------|-------------------|-------| | Schedule C net profit | Included via federal AGI | No adjustment | | Self-employment tax deduction | Included via federal AGI reduction | No adjustment | | SEP/SIMPLE/solo 401(k) | Included via federal AGI reduction | No adjustment | | QBI deduction (§199A) | NOT included — Virginia starts from AGI | VA taxable income is higher | | Self-employed health insurance | Included via federal AGI reduction | No adjustment | | Home office deduction | Included via Schedule C reduction | No adjustment | | Social Security benefits | Partially/fully included (follows federal inclusion) | No VA subtraction for <65 | | Out-of-state bond interest | Add to Virginia income | Not exempt for VA | | Virginia bond interest | Subtract from Virginia income | Exempt | | Federal tax refund | Not applicable (VA doesn't deduct federal tax) | N/A |
Form 760 line mapping
| Form 760 Line | Description | Source | |---------------|-------------|--------| | Line 1 | Federal adjusted gross income (FAGI) | Form 1040, Line 11 | | Line 2 | Additions (Schedule ADJ, Section A) | Computed | | Line 3 | Adjusted FAGI (Line 1 + Line 2) | Computed | | Line 6 | Subtractions (Schedule ADJ, Section B) | Computed | | Line 7 | Virginia AGI (Line 3 − Line 6) | Computed | | Line 9 | Deductions (standard or itemized) | Per filing method | | Line 10 | Exemptions ($930 × number) | Computed | | Line 11 | Virginia taxable income (Line 7 − 9 − 10) | Computed | | Line 12 | Tax (from rate table) | Computed per brackets | | Line 17 | Tax after credits | Computed | | Line 22+ | Payments (withholding, estimated) | W-2s, vouchers |
Refusal catalogue
| ID | Refusal | Reason | |----|---------|--------| | R-VA-1 | Part-year resident return (Form 760PY) | Different form and allocation rules | | R-VA-2 | Nonresident return (Form 763) | Different form and sourcing rules | | R-VA-3 | Virginia corporate income tax | Different tax type (Form 500) | | R-VA-4 | BPOL (local business license tax) | Local tax, not state-administered | | R-VA-5 | Virginia estate/trust return | Different form (Form 770) | | R-VA-6 | Land preservation / historic rehabilitation credits | Specialized credit computation | | R-VA-7 | Amended returns (Form 760C / 760F) | Requires additional procedures | | R-VA-8 | Pass-through entity tax (PTET) election | For multi-owner entities only |
R-VA-1
Part-year resident return (Form 760PY)Different form and allocation rules
R-VA-2
Nonresident return (Form 763)Different form and sourcing rules
R-VA-3
Virginia corporate income taxDifferent tax type (Form 500)
R-VA-4
BPOL (local business license tax)Local tax, not state-administered
R-VA-5
Virginia estate/trust returnDifferent form (Form 770)
R-VA-6
Land preservation / historic rehabilitation creditsSpecialized credit computation
R-VA-7
Amended returns (Form 760C / 760F)Requires additional procedures
R-VA-8
Pass-through entity tax (PTET) electionFor multi-owner entities only
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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