📅 2026 Update: Changes in Virginia Tax Laws

Since the original article was published, several important changes have occurred in tax laws that may affect Virginia residents. These changes include new legislation related to the Pass-Through Entity Tax (PTET) and updates on tax services available. The earlier article continues further down the page, providing foundational information.

📊 New Tax Legislation

Virginia passed legislation on April 11, 2022, creating a Pass-Through Entity Tax (PTET) similar to the entity-level tax in Illinois. This tax applies to partnerships and S corporations. The PTET allows certain businesses to pay their state income taxes at the entity level rather than passing the tax burden to individual owners.

⚖️ Other States Following Suit

Other states, such as Hawaii, Iowa, Indiana, and Kentucky, have also enacted similar PTET laws. These changes reflect a growing trend across the United States toward allowing businesses to pay taxes at the entity level. Virginia's move aligns it with these states, potentially making it easier for businesses to manage their tax obligations.

📅 Important Tax Forms

Taxpayers in Virginia should be aware of essential forms. For example, Form 3911 is used to trace missing refunds. Form 8716 requests an automatic extension of time to file certain business taxes. Form 1065 is required for partnerships to report their income and deductions.

🆓 Free Tax Assistance

Several free resources are available for taxpayers. IRS Free File provides free tax preparation for eligible individuals. The Volunteer Income Tax Assistance (VITA) program offers free help to people preparing their own returns, while the Tax Counseling for the Elderly (TCE) program assists seniors aged 60 and older.

📌 Key Takeaways

  • Virginia introduced a PTET for partnerships and S corporations.
  • Many states are adopting similar tax laws.
  • Essential forms include Form 3911, Form 8716, and Form 1065.
  • Free tax assistance is available through various programs.

💡 Tips for Managing Your Virginia Taxes

Review the details of your own situation with your attorney.

📋 Understand PTET Benefits

The new PTET could provide potential tax savings for certain business owners in Virginia. By paying taxes at the entity level, owners may reduce their overall tax liability.

📅 Stay Updated on Deadlines

Be aware of important tax deadlines. For instance, Form 1065 is generally due on the 15th day of the third month after the end of the partnership's tax year.

📄 Utilize Available Forms

Make sure to use the correct forms for your tax situation. For tracing a missing refund, complete Form 3911 as soon as possible.

🔍 Research Free Resources

Take advantage of programs like VITA and TCE for free tax assistance. These services can help you navigate your tax obligations without incurring extra costs.

📈 Keep Records Organized

Maintain accurate records of your income and deductions. Proper documentation can help ensure smooth processing of your tax returns and minimize the risk of audits.

🏆 Tax Services Ranked by User Reviews (2026)

This section covers tax services that fit the topic of Virginia taxes, focusing on user reviews and ratings. The order follows Trustpilot data checked in October 2026. Ratings reflect customer experiences, but they may change over time.

It’s essential to consider that unhappy customers may leave more reviews, impacting the overall score.

🥇 1. KBO Tax & Accounting Services

KBO Tax & Accounting Services has been rated 4.5. Known for nationwide tax preparation and bookkeeping services, it offers a broad range of tax solutions. However, it has a limited number of in-person office locations, which may affect accessibility for some clients.

🥈 2. Advanta Tax

Advanta Tax holds a 4.3 rating. This service specializes in nationwide tax solutions, including IRS resolution and state tax debt assistance. Some clients have reported delays in service, so timely communication is key.

🥉 3. SMAART Tax

SMAART Tax averages 4.4. It is known for its virtual tax services, serving all 50 states. Primarily an online service, it offers limited in-person consultations, which could be a drawback for those seeking face-to-face assistance.

4️⃣ Libre Tax Service

Libre Tax Service has a rating of 4.1. It focuses on online tax preparation and IRS audit defense. Some users find the website navigation challenging, which may affect their overall experience.

5️⃣ Jackson Hewitt Tax Service

Jackson Hewitt Tax Service is rated 4.2. This company provides tax preparation services with numerous nationwide locations. However, some complaints about customer service responsiveness have been noted.

6️⃣ TaxSlayer

TaxSlayer has an average rating of 4.0. Known for its online tax preparation software, it offers affordable pricing for users. Occasional software glitches have been reported, which may impact user experience.

🆓 Free Tax Assistance Options

Free government and nonprofit options are available for taxpayers. Services like IRS Free File, VITA, and TCE provide valuable resources for individuals needing help with their tax returns. These programs are designed to assist those who may not be able to afford commercial tax services.

🔎 What to Compare When Choosing Tax Services

  • 🏢 Availability of in-person consultations
  • 💵 Pricing and potential fees
  • 📈 Range of services offered
  • ⭐ Customer reviews and ratings
  • ⏱️ Processing times for returns

❓ Frequently Asked Questions

❓ What is the Pass-Through Entity Tax in Virginia?

The Pass-Through Entity Tax (PTET) in Virginia allows certain businesses, like partnerships and S corporations, to pay state income taxes at the entity level. This can streamline tax obligations for owners.

📅 What forms do I need for filing taxes in Virginia?

Key forms include Form 1065 for partnerships, Form 3911 to trace refunds, and Form 8716 for requesting extensions. Using the correct forms is essential for accurate filing.

💼 How can I get help with my taxes in Virginia?

Several free resources are available, such as VITA and TCE programs, which offer assistance in preparing tax returns. These services are beneficial for those needing help without incurring costs.

📊 What are the deadlines for Virginia tax forms?

Deadlines vary by form. For example, Form 1065 is due on the 15th day of the third month after the end of the partnership's tax year. It’s important to stay updated on all deadlines.

🕒 How long does it take to process tax forms?

Processing times depend on the specific form and the IRS center handling it. Check the IRS website for the most current information on processing times.

📞 How can I contact the IRS for assistance?

You can locate your nearest IRS office through the IRS website for in-person help. They also offer various resources online for common inquiries.

⚖️ Recent Court Cases Related to Tax Issues

Recent court rulings have shaped tax laws and taxpayers' rights in Virginia, impacting how taxes are filed and disputes resolved. These cases often address issues related to the state tax code and procedural matters.

For more recent rulings, feel free to browse more rulings on the news page.

End of October 2026 Update





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


Exemption Form 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.