Finance

Virginia State Income Tax: Rates and Who Pays in 2021

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Virginia state revenue tax charges are 2%, 3%, 5% and 5.75%. Virginia state revenue tax brackets and revenue tax charges rely on taxable revenue and residency standing.

Virginia state revenue 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 revenue tax?

Typically, you need to file a Virginia state revenue 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 revenue tax functions?

There are three sorts of residency statuses in the case of Virginia state revenue tax. They decide what portion of your revenue the state will tax.

Resident standing guidelines

Typically, you’re a resident of Virginia for revenue tax functions should you had been bodily current there, lived there or had a spot there (a “place of dwelling”) for greater than 183 days (the times don’t need to be consecutive) throughout the tax yr. Residents file Type 760.

Listed below are some examples of conditions that may make you a Virginia resident for tax functions, based on the state:

  • You spend greater than 183 days in Virginia throughout the tax yr.

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

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

Half-year resident standing guidelines

Typically, you’re a part-year resident of Virginia should you had been a nonresident for a number of the tax yr. That is typically the case for individuals who moved to Virginia from one other state.

Should you’re a part-year resident, you usually pay Virginia state tax on all revenue you acquired throughout the a part of the tax yr you had been a resident of Virginia, plus state revenue tax on revenue from Virginia sources whilst you had been a nonresident. Half-year residents file Type 760-PY.

Nonresident standing guidelines

Nonresidents nonetheless could need to pay Virginia state tax on revenue they obtain from Virginia sources. This implies you might must file a Virginia state tax return even should you reside in one other state however made cash from Virginia-related issues comparable to:

  • Providers carried out in Virginia.

  • Lease from actual property you personal in Virginia.

  • The sale or switch of actual property in Virginia.

  • Revenue from a Virginia enterprise, commerce or occupation.

Virginia Commuters. Should you’re a nonresident of Virginia and also you commute to Virginia from Kentucky or Washington, D.C., you don’t need to file a Virginia tax return should you don’t have a spot in Virginia and your solely revenue from Virginia is salaries and wages which might be taxable in Kentucky or Washington, D.C.

Should you’re a nonresident of Virginia and also you commute to Virginia from Maryland, Pennsylvania or West Virginia, you don’t need to file a Virginia tax return in case your solely revenue from Virginia is salaries and wages which might be taxable in Maryland, Pennsylvania or West Virginia.

Army Members. Relating to service members, tax guidelines can get complicated. In Virginia, members of the U.S. navy who’re authorized residents of one other state are typically labeled as nonresidents, even when they’re stationed in Virginia for years. For extra particulars, you possibly can examine Virginia navy tax guidelines, exemptions and aid.

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

The deadline to file your 2020 particular person revenue taxes in Virginia was the identical because the federal tax deadline: Could 17, 2021. Should you missed the Could due date, you could possibly make the most of Virginia’s computerized extension, which supplies most Virginia taxpayers till Nov. 1 — a further 6 months — to file with no software required.

Bear in mind although, a tax extension comes with a price ticket should you don’t learn the positive print. Extensions don’t offer you extra time to pay your taxes; they solely offer you extra time to file your return. If you are going to make the most of the extension, you’ll nonetheless must pay your estimated tax invoice by the unique deadline with a view to keep away from late-filing penalties or curiosity.

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

6 issues to learn about Virginia state revenue 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. Which means Virginia residents with a “restricted 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 house states.

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

Discover the tax aid firm that is greatest for you

We have weighed the professionals and cons of some main gamers within the house.

  • Free preliminary session.

  • $325 investigation charges. (BaghdadTime customers get 50% off these charges by utilizing the code NERD50.)

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

  • Telephone, e mail, mail and on-line portal.

  • Refunds attainable however considerably restricted.

  • Free preliminary session.

  • $1,500-$4,000 decision charges (on common; is determined by case specifics).

  • Telephone, e mail, mail and on-line portal.

  • Refunds solely inside 15 days of enrollment.

  • Free preliminary session.

  • Common decision charges slightly below $1,500 per the corporate.

  • Some case managers are additionally enrolled brokers or CPAs.

  • Telephone, e mail, mail and chat through on-line portal.

  • Refunds attainable however considerably restricted.

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