Virginia State Tax Laws – Some Basic Tips

If you have just moved to Virginia and are confused about filing tax returns in that state, here are some guidelines to help you.

To begin with, you should know that the rates for income tax in Virginia range from 2 to 5.75 percent and are classified into four income groups.

Married or single taxpayers who are filing tax returns individually pay income taxes at the rate of:

2 percent for an income of $3,000
3 percent for an income of $3,001-5,000
5 percent for an income of $5,001-17,000
5.75 percent for an income of $17,001 or more

Married couples who file income tax returns jointly have to pay taxes at the same rates but the income groups are doubled.

The due date for filing taxes in most U. S. states is April 15. The residents of Virginia are given a number of additional days to file tax returns and, usually, the due date is extended to May 1. You can get a lot of useful information regarding forms, due dates, instructions about filing taxes, and other tax-related information of significance at the official website of the state of Virginia:

The state levies sales tax and use tax at the rate of four percent. It could levy an additional one percent of local tax based on the purchases made. The above mentioned website gives ample information about sales tax too.

On July 1, 2005, the state decreased the taxes for food by nearly 2.5 percent and created a combined tax rate of 3.5 percent. The coming years promise reductions of 0.5 percent. The official website of the state of Virginia also gives the revised tax rates.

The use tax is a combination of the state’s retail sales and its use tax requirements. You have to pay these taxes if the total value of all sales-tax-free purchases you have made exceed $100. These items include those that were bought in a state devoid of sales tax and were later shipped to Virginia, sales tax free online purchases, and so on.

Virginia does not levy taxes on inheritance and estate at the state level. In this regard, it follows same estate tax laws as those followed at the federal level. It does not levy property tax either. Taxes are levied only at the local government level.

The official website of Virginia is the only place where you can get updated and authentic information about the state taxes. Here you can also obtain any other tax-related information that you might require.

Abhishek Agarwal