Virginia, historically known as the "Old Dominion," presents a tax journey that's as rich as its history. Whether you're a seasoned navigator of tax waters or a novice setting sail into the fiscal sea, understanding Virginia's tax structure is crucial. This article unveils the tax brackets, deductions, and other notable tax elements in Virginia to provide a clear chart for your tax voyage.

1. Income Tax Brackets

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In Virginia, the income tax structure is delineated into several brackets based on your Adjusted Gross Income (AGI):

• Up to $3,000: Tax rate of 2%

• $3,000 to $5,000: Tax is $60 plus 3% of the amount over $3,000

• $5,000 to $17,000: Tax is $120 plus 5% of the amount over $5,000

• Over $17,000: Tax is $720 plus 5.75% of the amount over $17,000

2. Deductions

Deductions are the lifebuoys that can reduce your taxable income. In Virginia, various deductions are available:

• Standard Deduction:

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  • $16,000 for married filers filing jointly

  • $8,000 for all other filers

  
  

• Dependent Deduction:

  $930 per dependent3 (p. 10)

• Age 65 or Older Deduction:

  $800 per spouse aged 65 or older4 (p. 10)

3. Reciprocal Agreements

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Virginia has reciprocal tax agreements with several states, easing the tax burdens for cross-border commuters:

• District of Columbia, Kentucky, Maryland, Pennsylvania, and West Virginia

4. Capital Gains Taxes

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Capital gains, both short-term and long-term, are taxed as ordinary income in Virginia.

5. Local Income Taxes

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Sailing through Virginia’s local tax waters is smooth as no local jurisdictions impose additional tax brackets.

Conclusion

Virginia's tax voyage offers a blend of simplicity and variety, reflecting its historical ethos in its modern tax structure. As you navigate through the Old Dominion's fiscal waters, understanding the tax brackets, deductions, and other elements can ensure a smooth sail towards fulfilling your tax obligations.