Individual Income Tax Forms
Form 760 Individual Income Tax Return
Form 760PY Part-Year Resident Income Tax Return
Form 763 Nonresident Income Tax Return
Form 770 Fiduciary Income Tax Return
Corporate Income Tax Forms
Form 500 Virginia Corporate Income Tax Return
Form 500EC Modified Net Income Tax Return
Form 502 Pass-Through Entity Return of Income
Sales Tax Forms
Form ST-7 Consumer Use Tax Return
Form ST-8 Package Out of State Tax Return
Form ST-9 CO Package Sales and Use Tax Return
Form ST-9 Retail Sales and Use Tax Return
Form 762 Return of Tangible Personal Property 2011
The Virginia tax burden is slightly above the national average. Virginians spend an average of 9.8% of their income on Virginia taxes. The National average is 9.7%. Virginians, every year, spend a total of $4,669 per capita in Virginia taxes. Virginia has the 19th highest taxes in the country. Its rural south, urban coast, and northern suburban counties makes for a state economy diverse enough for ample taxation.
The Washington D.C. suburbs in Northern Virginia provide the base of the state’s wealth. Major cities like Richmond and Roanoke are also major economic powerhouses. The State’s pro-business tax policies have made Richmond a haven for corporations that have moved from states with a greater tax burden. For every federal tax dollar collected from Virginia, about $1.50 of federal government aid goes to the State of Virginia.
Virginia taxes are offset by federal government aid. Without federal government aid, the Virginia taxes would be higher. Virginia’s Congressmen and Senators bring in the 10th highest amount of federal government pork. Virginia taxes are not much different from states of a similar population, economy, and political influence.
Sales Tax
Virginia’s general sales tax stands at 5%, below the national average of 5.8%. Local governments, such as cities and counties, have the right to add 1% to the base sales tax. All merchandise, including services, are subject to sales tax. There are no exemptions for basic necessities like grocery store foods; the state imposes half the sales tax on food for home consumption.
Virginia taxes on consumption reap about $1,111 from each resident a year. This is the seventh lowest amount of revenue from sales taxes. Virginia has a progressive sales tax policy that manifests itself in the form of special sales tax holidays. Virginia’s sales tax holidays holidays are “progressive” in the sense that the government creates incentive for consumers to buy certain products on certain days out of the year.
There are special tax holidays in the calendar year for emergency preparedness items, school supplies, and energy efficient appliances bearing the US Environmental Protection Agency’s Energy star logo.
Income taxes
Virginia taxes persons, married couples, and corporations based on their incomes. Virginia’s tax rate on personal income does not go higher than 5.75% when a person, or married couple, makes $17,000 or more. Virginia taxes on corporate income is imposed at a flat rate of 6%. All corporate income is subject to the income tax. Virginia ranks 35th in highest income tax burden, among the 50 states. Corporations, small businesses, and sole proprietorships must all pay income taxes at the same flat rate. It does not matter how much money they make. Corporate income taxes do not apply to companies that struggle to become solvent.
Property Taxes
Property taxes are collected at the state and local levels in Virginia. Virginia state taxes on property ownership are far less than what the local governments collect. Local governments fund public schools, fire, and police departments with property taxes. These local government entities are also supported by other Virginia taxes. Property taxes are higher in Northern and Coastal Virginia than in the interior.
Property tax appraisers work for the county government and assign the proper amount of money to pay in property taxes. Approximately $1,215 per capita are collected between both state and local governments in the State of Virginia. Virginia taxes on property ownership rank 18 among the highest property taxes in the country.
Introduction
Virginia is one of the states in the United States of America that have specific tax codes. These tax codes are designed to ensure that all residents of Virginia pay their fair share of taxes to the government. The Virginia tax codes are comprehensive and cover different aspects of taxation, including income, sales, and property taxes.
The Virginia Department of Taxation is charged with the responsibility of collecting taxes on behalf of the state government. In this article, we will investigate Virginia’s tax system in more detail. We will examine the different types of taxes, the tax rates, and how to file taxes in Virginia.
Types of Taxes
There are different types of taxes in Virginia. These are:
1. Income Tax
2. Sales and Use Tax
3. Property tax
4. Estate & Inheritance Tax
5. Corporate Income Tax
6. Fiduciary Income Tax
7. Withholding Tax
8. Motor Vehicle Sales and Use Tax
Income Tax
Income tax is a tax on individual earnings. Virginia’s income tax rate is progressive, which means that higher earners will pay a higher percentage in taxes than lower earners. Virginia has a tiered system of income tax rates. The tax rates range from 2% to 5.75%. Individuals who earn less than $3,000 are exempt from paying income taxes.
In addition to the state income tax, Virginia also has local income taxes. Local income taxes are collected by cities and counties and are usually based on a percentage of the state income tax. The local income tax rate varies across the state, depending on the locality.
Sales and Use Tax
Sales and use tax are collected on the sale of goods and services. The tax rate for sales and use tax in Virginia is 5.3%. This rate includes the state sales tax of 4.3% and the local sales tax of 1%.
The state sales tax applies to most tangible personal property, such as clothing, furniture, and cars. Exemptions to the state sales tax include food purchased for home consumption, prescription drugs, and certain medical devices.
The local sales tax is applied to the same goods and services as the state sales tax. However, the local sales tax can vary across different localities. The localities can decide whether or not to impose a local sales tax, and if they choose to do so, they can set the rate of the tax.
Property Tax
Property tax is a tax on the value of real estate and personal property. The value of real estate and personal property is assessed by local governments, and the tax is paid to the local government.
The property tax rate in Virginia varies depending on the locality. The average property tax rate in Virginia is around 0.8% of the assessed value of the property. However, rates can be as high as 1.89% in some localities.
Estate & Inheritance Tax
Virginia does not have an estate or inheritance tax. This means that when a person passes away, their assets are transferred to their heirs without any tax implications.
Corporate Income Tax
Corporate income tax is a tax on the profits of corporations. The corporate income tax rate in Virginia is 6%. The tax is calculated based on the net income of the corporation, and deductions are allowed for certain expenses.
Fiduciary Income Tax
Fiduciary income tax is a tax on the income earned by trusts and estates. The tax rate for fiduciary income tax in Virginia is the same as the individual income tax rates, which range from 2% to 5.75%.
Withholding Tax
Withholding tax is a tax on wages and salaries. The tax is withheld by the employer and paid to the state on behalf of the employee. The withholding tax rate in Virginia is 2.9% of the employee’s gross income.
Motor Vehicle Sales and Use Tax
Motor vehicle sales and use tax is a tax on the sale and use of motor vehicles. The tax rate for motor vehicle sales and use tax in Virginia is 4.15%. The tax is paid by the buyer when they purchase a new or used vehicle.
How to File Taxes in Virginia
Filing taxes in Virginia is a straightforward process. Taxpayers can either file their taxes online or file them by mail. The Virginia Department of Taxation offers free online filing for residents of Virginia.
To file taxes online, taxpayers need to create an account on the Virginia Department of Taxation website. The taxpayer will need their Social Security number and their adjusted gross income from the previous year’s tax return.
Taxpayers who prefer to file by mail can download the necessary forms from the Virginia Department of Taxation website. The forms can be filled out manually and mailed to the Virginia Department of Taxation.
Conclusion
In conclusion, Virginia’s tax system is complex and covers different types of taxes, including income tax, sales and use tax, property tax, estate & inheritance tax, corporate income tax, fiduciary income tax, withholding tax, and motor vehicle sales and use tax. The tax rates vary depending on the type of tax and the locality. Filing taxes in Virginia is a straightforward process that can be done online or by mail. It is essential for taxpayers to understand Virginia’s tax system so that they can pay their fair share of taxes and avoid penalties.