States / Virginia

Virginia

Last checked Oct 22, 2026

Virginia practitioners work across at least seven state logins for tax and payroll, run by four agencies. Virginia Tax is partway through a four-year move from IRMS, a system built from 1999 to 2005 under a CGI-AMS partnership, to FAST Enterprises' GenTax: business sales and withholding taxes moved to the new Online Services platform on September 8, 2026, with income taxes to follow through 2029 on a $131M budget. The Virginia Employment Commission's unemployment system, built by HCL America, went live in November 2021 after 12 years and about $100M, and in August 2026 its employer portal was split off from Virginia Tax's. A new state paid family and medical leave program, enacted in April 2026, has no vendor yet.

Who administers what

Every fact links to its source and carries a label: Public record Vendor claim Press / secondary

What the state has spent

Contract totals are the approved ceilings or current contract values the sources state, not money paid, and they are added up only where a plain contract figure exists. The yearly average spreads each system's payments over the years they cover (marked p), or, where no payment data was found, its contract total over the contract term (marked c); systems with neither are left out; it is an estimate of the yearly cost, not a reported figure. Payments to date and project budgets or estimates are added up in their own tiles, from the figures shown in the table; the three kinds of figure overlap and are never added together. Follow each system below for its sources.

Portals practitioners use

Leadership and contacts

Checked Oct 30, 2026. People change roles often; confirm on the agency's site before relying on a name.

Chain of command

• Voters
  • Governor: Abigail D. Spanberger
    • Tax Commissioner: Kristin Collins Virginia Department of Taxation (Virginia Tax)
    • Commissioner: Melissa Smith Virginia Employment Commission
    • Commissioner of Social Services: Duke Storen Virginia Department of Social Services, Division of Child Support Enforcement
• Boards
  • Chair, State Corporation Commission: Kelsey A. Bagot State Corporation Commission, Office of the Clerk

Employer account numbers

Checked Oct 24, 2026.

Virginia Tax issues the withholding account number and the Virginia Employment Commission (VEC) issues the unemployment insurance account number. Since August 1, 2026 the two agencies' accounts can no longer be linked: unemployment tax is managed in VEC Employer Self Service (ID.me login), and Virginia Tax online services are reached with the FEIN, not the VEC account number. Virginia's Paid Family and Medical Leave program has no employer account yet: the VEC is still developing it, payroll contributions begin April 1, 2028, and the VEC publishes no employer registration. Virginia law bars local income taxes, so there is no local withholding account.

Layout: 9 is a digit, A is a letter, other characters are shown as the agency writes them. No real account numbers appear on this site.

Employer tax ID numbers for every state researched

Unemployment insurance tax

Checked Nov 3, 2026. Virginia Employment Commission (VEC)

Virginia's taxable wage base is $8,000, fixed in statute since 1991 and unchanged for 2027 as the Code reads today. A new employer starts at a 2.5% base rate plus the add-ons charged to everyone (a pool cost charge, and a 0.2% fund building charge when the trust fund's balance factor is 50% or less); base rates run from 0.1% to 6.2%. Since January 1, 2025 the budget act cuts every rate by 0.05% and charges a separate 0.05% administrative fee on taxable wages that does not count toward the FUTA credit.

Taxable wage base

2027: $8,000
2026: $8,000
Not indexed. Code of Virginia 60.2-229 excludes from taxable wages remuneration above $8,000 a calendar year, for years after December 31, 1990 (read 2026-11-03). source Public record

New employer rate

2026: 2.5% Base rate set by Code of Virginia 60.2-526(B), plus the pool cost charge and any fund building charge, less the 0.05% budget reduction. Out-of-state highway and building construction contractors (foreign contractors) pay the maximum base rate, 6.2%, for three calendar years (60.2-527). source Public record

Rate range

2026: 0.1% to 6.2%, Base tax rate from the employer's benefit ratio (benefit charges over taxable wages for up to four fiscal years ending June 30) on the line of the experience rating table for that year's fund balance factor (60.2-531, 60.2-533), plus a pool cost charge (60.2-532) and a 0.2% fund building charge when the fund balance factor is 50% or less The min and max are base rates; the 2026 fund balance factor, pool cost charge and whether the fund building charge applies were not found on VEC's public pages. The VEC's sample notice for 2022 showed a 50.00% fund balance factor, a 0.03% pool cost charge and the 0.20% fund building charge. The budget act reduces all these rates by 0.05% as of January 1, 2025 and tells the VEC to leave out pandemic claims (April 1, 2020 to June 30, 2021) when it computes rates and the pool charge. 2027 rates were not yet published. source Public record

Other assessments

• Administrative fee (Appropriation Act, Item 359 J.1): 0.05% of taxable wages, paid quarterly; tax rates are reduced by 0.05% to offset it (2026) does not count toward the FUTA credit source Public record
• Fund building charge (60.2-533(C)): 0.2%, added to all rates when the fund balance factor is 50% or less (2026) source Public record
• Pool cost charge (60.2-532): Set each year: pool costs over 36 months ending June 30 divided by taxable payroll, rounded to 0.01%; 2026 figure not found (2026) source Public record

Rate notices

The VEC issues an Annual Tax Rate Notice for each calendar year; its sample notice for 2022 is dated 12/21/2021. By statute a new employer must be told its rate by December 31 before the year. source Public record

Voluntary contributions

Not allowed source Public record

Filing

FC-20/FC-21 Employer's Quarterly Tax Report (eForms FC20/21)
Due: Last day of the month after the quarter: April 30, July 31, October 31, January 31; moved to the next business day if it falls on a weekend or holiday.
Electronic filing: Required: quarterly tax and payroll reports must be filed electronically (eForms FC20/21, Employer Self Service or Web Upload); a temporary, annually renewed waiver is available for undue hardship.
VEC Employer Self Service (ESS) source Public record

FUTA credit reduction

None. Not on the U.S. Department of Labor's list of states with a Title XII advance balance on January 1, 2026 (only California and the Virgin Islands). Virginia's only credit reduction in 2010 to 2025 was 0.3% for 2011. source Public record

Recent and coming changes

• Jan 1, 2025 A separate administrative fee of 0.05% of taxable wages, paid quarterly into the Special Unemployment Compensation Administration Fund, with all tax rates reduced by 0.05%; carried in the 2026 to 2028 Appropriation Act (2026 Special Session I, HB30 Chapter 1, Item 359 J.1). source Public record
• Paid Family and Medical Leave premiums, assessed to employers and employees beginning in 2028, are a separate program run by the VEC; the budget act lets the VEC borrow for start-up costs. source Public record

The VEC's FAQ worked example says the first $8,000 of each employee's wages is taxable; the annual rate notice tells the employer the single combined rate to multiply on the quarterly report. The U.S. Department of Labor's Significant Provisions of State UI Laws, effective July 2026, gives the same figures: $8,000, 0.10% to 6.20%, new employer 2.50% (DOL's rates leave out surtaxes and surcharges). Voluntary contributions: the U.S. Department of Labor's Comparison of State Unemployment Insurance Laws 2023 (Table 2-13, States Permitting Rate Reduction Through Voluntary Contributions) does not list Virginia, and the state agency's pages are silent, so "allowed" is false on DOL's 2023 summary (type primary).

Not confirmed: The 2026 fund balance factor, pool cost charge and whether the 0.2% fund building charge applied, so the actual 2026 minimum and maximum total rates. The deadline and process to protest an annual tax rate notice (the Code sections read cover only successorship reviews and quarterly benefit charges). When the 2026 annual notices were mailed (the only date found is on a 2021 sample notice). Whether the pool cost and fund building charges count toward the FUTA credit (no source says).

Unemployment insurance tax in every state

Income tax withholding

Checked Nov 3, 2026

Employees give the employer Form VA-4 when employment begins; the federal W-4 may not be substituted, and with no VA-4 the employer withholds as if no exemptions were claimed. Supplemental wages paid separately are withheld by the aggregate method, or at a flat 5.75% when tax has been withheld from regular wages. Virginia has reciprocity with Kentucky and the District of Columbia (daily commuters only) and with Maryland, Pennsylvania and West Virginia (wage-only income, under 183 days living in Virginia), claimed on the VA-4; other nonresidents, including temporary workers, are withheld on like residents, with no day threshold stated.

Withholding certificate

Form VA-4, Employee's Virginia Income Tax Withholding Exemption Certificate (Rev. 04/26); Form VA-4P for pension and annuity recipients. Federal Form W-4: not accepted. When employment begins; a new VA-4 is due within 10 days after the allowable number of exemptions changes or a previously exempt employee becomes subject to tax. Employers may receive VA-4s electronically under the federal Treas. Reg. 31.3402(f)(5)-1(c) requirements. With no certificate on file: If no VA-4 is filed, withhold as if no exemptions had been claimed. Line 3 of the VA-4 covers no prior and expected liability, expected Virginia adjusted gross income below $11,950 (single or married filing separately) or $23,900 (married), and the reciprocity conditions; line 4 covers a military spouse under the Servicemember Civil Relief Act as amended by the Military Spouses Residency Relief Act, with a copy of the spousal military ID attached. An exemption must be renewed each calendar year. source Public record

Supplemental wages

2026: 5.75%. Supplemental wages paid with regular wages are added to them and withheld on together. Paid separately, add them to the current or last regular wages, compute the tax on the total and subtract the tax on the regular wages; or, if tax has been withheld from regular wages, use a flat 5.75% without exemptions. Nonperiodic pension and annuity payments subject to mandatory federal withholding are withheld at 4%. source Public record

Withholding tables

Income Tax Withholding Guide for Employers (Rev. 10/26), with withholding tables and formula for wages paid after July 1, 2025 (2026). The formula subtracts $8,750 plus $930 for each personal and dependent exemption and $800 for each age 65 or blind exemption from annualized pay, then applies 2% up to $3,000, 3% to $5,000, 5% to $17,000 and 5.75% above $17,000. The guide says the standard deduction increase is scheduled to sunset after taxable year 2026; no 2027 tables were published at the time of checking.

Reciprocity

Agreements with District of Columbia, Kentucky, Maryland, Pennsylvania, West Virginia. Employee form: Form VA-4 (line 3), filed for each calendar year of exemption. Kentucky and District of Columbia residents are exempt only if they commute daily to work in Virginia. Maryland, Pennsylvania and West Virginia residents are exempt if they keep a legal domicile in another state and live in Virginia less than 183 days of the year (or not at all), their only Virginia source income is salaries or wages, and that income is taxed by their state of residence. Residents of these states who do not meet the conditions are withheld on. source Public record

Nonresidents working here

No day or wage threshold stated: wages paid to a nonresident for services in Virginia are typically withheld on in the same manner as for a resident, and residents of non-reciprocity states, including those working in Virginia on a temporary basis, are subject to withholding. source Public record

Deposits and returns

• quarterly: Less than $300 per quarter (average monthly liability under $100). Due April 30, July 31, October 31 and January 31 on Form VA-5
• monthly: $300 to $2,999 per quarter (at least $100 but less than $1,000 a month). Due The 25th of the following month on Form VA-5
• semi-weekly: $3,000 or more per quarter (average monthly liability of $1,000 or more). Due Form VA-15 payment within 3 banking days when more than $500 is withheld as of a federal deposit cutoff (generally Tuesday and Friday), plus a quarterly Form VA-16 reconciliation due the last day of the month after the quarter. An employer with no more than 5 employees subject to withholding may request by December 15 a waiver to file monthly for the next year.
• seasonal: Businesses paying wages only in certain months, designated at registration. Due The 25th of the following month for each designated month
• annual (household employers): Employers whose employment is exclusively domestic service in the employer's private home may elect it. Due Form VA-6H by January 31

Form VA-5 (quarterly, monthly and seasonal filers) or Forms VA-15 and VA-16 (semi-weekly filers); a return is required for every period the account is open, even with no tax due. Filing status is reviewed each year and changes take effect January 1. The VA-6 annual summary is covered on the information returns page. All employers must file all withholding returns and payments electronically (eForms, Online Services for Businesses, Web Upload, or ACH credit); a temporary waiver may be requested and must be renewed annually. Virginia Tax Online Services for Businesses source Public record

Annual reconciliation

VA-6 (VA-6H for household employers), due January 31, or within 30 days after the final payment of wages. With the W-2 and 1099 filing rules

Recent and coming changes

• Jul 1, 2025 Withholding tables for wages paid after July 1, 2025 reflect the 2025 General Assembly's standard deduction increase to $8,750 (single) and $17,500 (married filing jointly). source Public record
• Jan 1, 2027 The standard deduction increase is scheduled to sunset after taxable year 2026, reverting to $3,000 (single) and $6,000 (married filing jointly), which would change withholding for 2027 unless extended. source Public record

No local income tax withholding is described in the employer guide; the tax IDs page notes Virginia has no local withholding account. The VA-6 annual summary and W-2 and 1099 filing are covered on the information returns page.

Not confirmed: No Virginia Tax statement on a convenience of the employer rule was found. No 2027 withholding tables or a 2026 or 2027 law extending the standard deduction increase were found; the October 2026 guide still describes the sunset. The Code of Virginia sections for the supplemental rate and reciprocity were not read; the facts rest on the Virginia Tax guide and the VA-4.

Withholding rules in every state

Credits for other states' taxes and part-year residents

Checked Nov 3, 2026

Virginia residents claim the credit for tax paid to another state on Schedule OSC (Form 760 line 24), limited to the lesser of the other state's tax or the Virginia tax times the share of income taxed by both. A part-year resident subtracts the income attributable to the period of residence outside Virginia on Form 760PY line 7. Virginia gives a reverse credit to nonresidents who live in Arizona, California, Oregon or the District of Columbia, and is an associate member of the Multistate Tax Commission.

Residents: credit for tax paid to other states

Schedule OSC, Credit for Tax Paid to Another State (a separate computation for each state). Line: Form 760 line 24 (from Schedule OSC line 21). Limit: The lesser of the qualifying tax liability paid to the other state (line 5) or the Virginia ratio: Virginia income tax times the income percentage, which is qualifying taxable income divided by Virginia taxable income, to one decimal place and not over 100% (lines 7 to 10). Covers: Income taxes paid to other states, on earned or business income, gain from the sale of a capital asset not used in a trade or business, income taxed to an S corporation by a state that does not recognize the S election, and an eligible pass-through entity tax paid on the owner's behalf. Lottery or gambling winnings and unemployment compensation are not qualifying income. No: the credit applies only to income taxes paid to other states. Foreign taxes: No under Schedule OSC, which applies only to other states; a separate Foreign Source Retirement Income Tax Credit is claimed on Schedule CR. Pass-through entity taxes: Yes: a credit in proportion to the ownership interest for tax paid by a pass-through entity under another state's law that is substantially similar to Virginia's elective PTE tax (from taxable year 2021). Attach: A separate computation for each state on Schedule OSC; a copy of the other state's return; for a composite return, a Composite Filing Statement; for S corporation or PTE tax, a statement from the entity. W-2s, 1099s and Schedules K-1 are not acceptable. No credit for income from Arizona, California or Oregon (claim it on that state's nonresident return) or the District of Columbia. For Kentucky, Maryland, Pennsylvania and West Virginia, no credit for wages exempt in that state. A border state computation (100% income percentage) is allowed when the only other state is Kentucky, Maryland, North Carolina or West Virginia and the income there is only wages, salaries or Schedule C business income. Va. Code 58.1-332; 2025 Form 760 instructions, Credit for Taxes Paid to Another State and Schedule OSC. source Public record

Part-year residents: income while a nonresident

Subtracted from income The Virginia Schedule of Income allocates each item of federal adjusted gross income between the period of Virginia residence (Column 2) and the other period (Column 3), based on where the taxpayer was a resident when the income was received. The Column 3 total is subtracted on the return; a credit for tax paid to another state cannot also be claimed on that income. Form 760PY with the Virginia Schedule of Income (Part 1, Income Distribution). Line: Form 760PY line 7, Income Attributable to Your Period of Residence Outside Virginia (from Schedule of Income Part 1, line 9, Column 3). source Public record

Part-year residents: credit for the period of residence

Available. A part-year resident filing Form 760PY can claim credit for income tax paid as a nonresident to another state on earned or business income or capital gain taxed by both states. Schedule OSC, Form 760PY line 24. source Public record

Nonresidents: reverse credit

Yes, for residents of Arizona, California, District of Columbia, Oregon. A nonresident who is a resident of one of these places, with Virginia source income taxed by both Virginia and the home state, claims the credit on Schedule OSC and Form 763 line 24. The credit is the lesser of the Virginia tax or the home state tax times Virginia taxable income over the qualifying taxable income on the home state return. Nonresidents of other states get no credit. source Public record

Local income taxes

Not applicable: the credit applies only to income taxes paid to other states, and the instructions describe no Virginia local income tax. source Public record

Multistate Tax Compact

Associate member. source Public record

Other interstate rules

• Actual resident: a person domiciled elsewhere who maintained an abode in Virginia or was physically present more than 183 total days is an actual resident and may have to file resident returns in both states; the credit is then claimed in the state of domicile. source Public record
• Members of the U.S. Congress domiciled in another state are not taxed as actual residents of Virginia even with an abode in Virginia for more than 183 days. source Public record

Reciprocity (Kentucky and District of Columbia daily commuters; Maryland, Pennsylvania and West Virginia residents with only Virginia wages) is covered in the withholding data.

Not confirmed: The 2025 Schedule OSC form itself (2025-schedule-osc.pdf) and Form 763-S returned 404; the line facts come from the 760, 760PY and 763 instructions. Whether Virginia has adopted UDITPA or the Compact apportionment article was not checked against the statute. No 2026 change specific to these credits was found in the 2025 instructions.

Multistate rules in every state

Business return deadlines and annual reports

Checked Nov 4, 2026

Corporations file Form 500 by the 15th day of the 4th month after the taxable year (April 15, 2026 for calendar 2025), with an automatic seven-month extension if at least 90% of the tax is paid by the original due date. S corporations and partnerships file Form 502 by the 15th day of the 4th month (April 15, 2026), with an automatic six-month extension. With the State Corporation Commission, corporations pay an annual registration fee and file an annual report by the last day of their anniversary month, LLCs pay $50 by the last day of their formation month, limited partnerships pay $50 by September 30, and LLPs file a $50 annual continuation report by July 1.

Corporate return

Corporate income tax. Form 500, Virginia Corporation Income Tax Return. Due: On or before the 15th day of the 4th month (15th day of the 6th month for nonprofit corporations) following the close of the taxable year (Va. Code 58.1-441); a Saturday, Sunday or legal holiday moves it to the next business day. For tax year 2025: Apr 15, 2026. Fiscal years: Same rule for fiscal years; nonprofit corporations file by the 15th day of the 6th month. source Public record

Corporate extension

Automatic. Seven months (six months for nonprofit corporations and entities other than C corporations). No application; extension payments are made with Form 500CP. The extension does not extend the time to pay; at least 90% of the tax must be paid by the original due date or an extension penalty of 2% per month applies.

S corporations

Form 502, Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax (no separate S corporation return). Due: On or before the 15th day of the 4th month after the close of the entity's taxable year. For tax year 2025: Apr 15, 2026. Automatic, to the later of 6 months after the Form 502 due date or 30 days after the extended federal due date; nonresident withholding tax is still due by the original due date (Form 502W). source Public record

Partnerships

Form 502, Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax. Due: On or before the 15th day of the 4th month after the close of the entity's taxable year. For tax year 2025: Apr 15, 2026. Automatic, to the later of 6 months after the Form 502 due date or 30 days after the extended federal due date; withholding tax is due by the original due date. source Public record

Individuals

Form 760. For tax year 2025: May 1, 2026. Automatic six-month filing extension with no application; at least 90% of the tax must be paid by May 1 to avoid penalty (Form 760IP for a tentative payment). source Public record

Other business returns with a fixed date

• Litter Tax return (Form 200): May 1 each year, for the preceding calendar year. Businesses subject to the litter tax, from the first January 1 they are in business. source Public record

Annual report

Filed with the Virginia State Corporation Commission (SCC), Clerk's Office through Clerk's Information System (CIS).

Registered charities renew their registration with the Department of Agriculture and Consumer Services (on the start-up planner).

Recent and coming changes

• Jan 1, 2027 2026 Acts chapters 393 and 394 amend the nonstock corporation annual registration fee section (Va. Code 13.1-936.1) effective January 1, 2027, adding conversions from eligible entities; the $25 fee and $10 penalty are unchanged. source Public record

Virginia individual returns are due May 1, not April 15. The pass-through entity tax is covered separately.

Not confirmed: Tax year 2026 Form 500, 502 and 760 instructions are not yet published; nothing in the saved sources changes the due dates for returns due in 2027.

Deadlines and annual reports in every state

Electronic payment, penalties and interest

Checked Nov 4, 2026

Every business must pay sales and use, withholding, corporate income and pass-through entity taxes electronically, and individuals must pay electronically once any estimated or extension payment exceeds $1,500 or the year's liability exceeds $6,000. Late filing and late payment penalties are each 6% a month up to 30%, with no more than 30% combined; interest is the federal underpayment rate plus 2%, which is 9% for the fourth quarter of 2026.

Interest on unpaid tax

The rate on assessments is the federal underpayment rate under IRC 6621(a)(2) plus two percent, and the rate on refunds is the federal noncorporate overpayment rate under IRC 6621(a)(1) plus two percent, so the rates can change every quarter with the federal rates. For administrative appeals filed on or after July 1, 2011, a reduced rate equal to the federal short-term rate (4% for the fourth quarter of 2026) applies from nine months after the assessment until a determination is issued. Compounding: Computed separately for each period at the rate for that period; compounding is not stated. Va. Code 58.1-15. source Public record

When tax must be paid electronically

• Sales and use: Any business, or person filing on behalf of a business. Methods: Online Services account, eForms, Web Upload, or ACH credit. ACH credit requires setting up the CCD+TXP format with the taxpayer's bank; see the Electronic Payment Guide. source Public record
• Withholding: Any business, or person filing on behalf of a business (VA-5 and VA-15 payments); payroll service providers acting for 100 or more taxpayers must pay by ACH credit. Methods: Online Services account, eForms, Web Upload, or ACH credit. ACH credit setup with the taxpayer's bank; see the Electronic Payment Guide. source Public record
• Corporate: Any business (payments 500ES, 500V and 500C). Methods: Online Services account, eForms, Web Upload, ACH credit, or approved commercial software. source Public record
• Pass-through: Any pass-through entity (payments 502V and 502W) and elective pass-through entity tax (PTET-PMT). Methods: Online Services account, eForms, Web Upload, ACH credit, or approved commercial software. source Public record
• Individual: Any installment payment of estimated tax exceeds $1,500, any extension payment exceeds $1,500, or the total income tax liability for the year exceeds $6,000; once met, all future income tax payments must be electronic. Methods: Individual online services account, 760ES eForm, or ACH credit. Online services account enrollment needs a copy of the most recently filed Virginia return. source Public record

Penalties

Late filing

Covers: Individual and fiduciary income tax, corporation income tax, and retail sales and use tax (each by its own statute). 6% of the tax for each month or fraction of a month the return is late. For individuals the penalty applies only to returns filed more than 6 months after the due date (the automatic extension period), so a late filing assessment reflects the full 30%. Maximum: 30% of the tax. Minimum: $100 for corporations and $10 for sales and use tax, whether or not tax is due. Va. Code 58.1-347 (individual), 58.1-450 (corporation), 58.1-635 (sales and use). source Public record

Late payment

Covers: Individual, fiduciary and corporation income tax; individuals also face an extension penalty. 6% of the unpaid tax for each month or fraction of a month, up to 30%. Extension penalty: if less than 90% of the final tax is paid by the original due date, 2% a month on the balance due from the original due date until the return is filed, up to 12%. Maximum: 30% (extension penalty 12%). The late payment penalty is not charged for any month in which the late filing penalty applies, and the two together may not exceed 30%. The extension penalty and the late payment penalty can both apply to one return, for different periods. Va. Code 58.1-351 (individual), 58.1-455 (corporation). source Public record

Estimated tax, individuals

Charged as interest. An addition to tax figured at the interest rate under Va. Code 58.1-15 (the federal underpayment rate plus 2%). Safe harbor: Estimated payments are required when the liability after withholding and credits is expected to exceed $1,000. No addition if each installment is paid on time and is at least 90% (66 2/3% for farmers, fishermen or merchant seamen) of the amount due on annualized or actual income, is based on the prior year's income at current rates, or equals or exceeds the prior year's tax for a full-year return that showed a liability; or if total installment underpayments are $1,000 or less. Otherwise the underpayment is based on the lesser of 90% of this year's tax or 100% of last year's. Form: Form 760C (Form 760F for farmers, fishermen and merchant seamen). source Public record

Estimated tax, corporations

Charged as interest. An addition to tax at the Va. Code 58.1-15 interest rate on each underpaid installment, measured against 90% of the tax shown on the return. Safe harbor: No addition if payments by each installment date equal the lesser of: the prior year's tax (if a 12-month return showing a liability was filed), the current rate applied to the prior year's facts, or 90% of the tax on annualized income. Form: Form 500C. source Public record

Penalty relief

If extenuating circumstances (fire, death, illness requiring hospitalization on or around the due date, flood or natural disaster, or other unusual situations) prevented timely filing or payment, write to Virginia Tax, Office of Customer Services, P.O. Box 1115, Richmond, VA 23218-1115 with the details and supporting documentation. Penalties are generally not waived for simple oversight. For sales tax, the return may be accepted without penalty for providential or other good cause. How: A written request (no form named); penalties over $2,000 require an offer in compromise. Time limit: The written waiver route covers penalties of $2,000 or less. source Public record

Other penalties

• ACH credit payment not honored by the bank. $35 (Va. Code 2.2-614.1), in addition to other penalties. source Public record
• False or fraudulent income tax return, or failing to file with intent to evade. 100% of the correct tax. source Public record
• False or fraudulent sales tax return, or willful failure to file with intent to defraud. 50% of the proper tax. source Public record

Recent and coming changes

• Oct 1, 2026 Virginia interest rates stay at 9% for underpayments and refunds for the fourth quarter of 2026 (Tax Bulletin 26-4, September 16, 2026). source Public record

Va. Code 58.1-202.1 also authorizes the Tax Commissioner to require electronic funds transfer when the average monthly liability for corporate income, withholding or sales tax exceeds $20,000, by ACH debit; the Department's current rule, read on its Electronic Filing Requirements page, covers every business. A waiver for undue hardship can be requested on the Electronic Filing Waiver Request. Interest also accrues on the unpaid balance of any assessment more than 30 days old. Fiduciary returns must be filed electronically by preparers, but there is no electronic payment requirement for them.

Not confirmed: The penalty for not paying electronically when required was not stated on the pages read. First quarter 2027 interest rate: not yet announced in a Tax Bulletin as of 2026-11-04 (it follows the federal rate set in November). Withholding late filing and late payment penalties (VA-5, VA-15, VA-6) were not read in the statute. No first-time abatement policy was found.

Electronic payment, penalties and interest in every state

Disaster relief rules

Checked Nov 4, 2026

Virginia does not follow IRS postponements automatically; the Tax Commissioner grants relief for each disaster in a Tax Bulletin, under a statute that allows extensions and penalty waivers for a natural disaster and interest waivers when the Governor has declared a state of emergency. Recent relief covered individual and fiduciary income tax returns and payments in named localities, automatically; other taxes need a written hardship request.

When the IRS postpones deadlines

Announces relief case by case Va. Code 58.1-112(B) gives the Tax Commissioner authority to waive penalties and grant extensions of time to file or pay to any class of taxpayers when the normal due date has caused, or would cause, undue hardship because of a natural disaster or other reason. Relief is announced in a Tax Bulletin for each disaster (TB 24-7 for Hurricane Helene, Oct. 4, 2024; TB 25-2 for the February 2025 winter storms and flooding, May 1, 2025). The Virginia date can differ from the IRS date: for Helene, Virginia gave until June 1, 2025. The localities named in each bulletin (for TB 25-2, the City of Bristol and 35 counties); if additional localities are declared disaster areas, they also qualify. Va. Code 58.1-112(B) and (C); Tax Bulletins 24-7 and 25-2. source Public record

Taxes covered

Individual and fiduciary income tax returns (Forms 760, 763, 760PY and 770) and final and estimated income tax payments due in the period, with interest, late filing penalties and late payment penalties waived if filed and paid by the bulletin's date. Not covered: Other state taxes administered by the Department are not covered automatically: a taxpayer who can demonstrate hardship from the disaster may be granted a waiver of penalties and interest on written request, before or after an assessment. source Public record

State-declared disasters

The extension and penalty authority applies to any natural disaster or other reason, not only federal declarations. Interest may be waived only to the extent the Governor declares a state of emergency under Va. Code 44-146.17(7) for the disaster. Any action must be published in a manner reasonably calculated to inform the affected class. source Public record

How to get relief

Automatic for individual and fiduciary income tax; a taxpayer assessed a penalty who believes it qualifies contacts the Department ((804) 367-8031 individual, (804) 367-8037 business). For other taxes, a written request to Virginia Department of Taxation, Customer Service Section Severe Storm Relief, P.O. Box 1115, Richmond, VA 23218-1115. Penalties: Penalties and extensions under Va. Code 58.1-112(B); interest only under 58.1-112(C), which requires a Governor's state of emergency. source Public record

Where relief is posted

Virginia Tax Bulletins (no standing disaster page found)

Other disaster tax rules

• Virginia's annual sales tax holiday includes hurricane and emergency preparedness supplies (August 7 to 9, 2026). source Public record

Disaster relief appears as Tax Bulletins; none for a disaster had been issued in 2026 as of Nov. 4, 2026.

Not confirmed: What the 2021 Special Session I amendment (chapter 536) changed in Va. Code 58.1-112 was not read. Whether Virginia has given relief for a disaster declared only by the Governor, with no IRS relief, was not found. No Virginia casualty loss or property tax disaster rule was looked for.

Current disaster relief and every state's rules

Federal tax picture

From the IRS's own statistics: the Data Book for fiscal 2025 and Statistics of Income for tax year 2023. Every state

Collected by type: Individual income tax withheld and FICA tax $85.2B; Individual income tax payments and SECA tax $27.2B; Business income taxes $11.1B; Estate and trust income tax $873M; Estate tax $779M; Excise taxes $487M; Unemployment insurance tax $193M; Gift tax $69M; Railroad retirement tax $9.0M. source Public record

Filers moving in and out, 2022 to 2023

135,609 returns (230,220 people) with $11.2B of income moved in from other states; 135,188 returns (230,262 people) with $12.1B moved out, a net loss of $0.9B in income. source Public record

Minimum wage

Checked Nov 3, 2026. Virginia Department of Labor and Industry

Virginia's minimum wage is $12.77 an hour in 2026 and rises to $13.75 on January 1, 2027 and $15.00 on January 1, 2028 under 2026 legislation (HB 1 and SB 1, 2026 Acts chapters 350 and 351); from 2029 it is indexed to the CPI-U. Tipped employees may be paid the federal tipped cash wage of $2.13 as long as wages plus tips reach the state minimum. Starting January 1, 2027, farm laborers are no longer excluded from the state minimum wage.

Rate

$12.77 from Jan 1, 2026 Set by the CPI-U adjustment under the earlier law; Va. Code 40.1-28.10(B) now states it for January 1, 2026 to January 1, 2027.
$13.75 from Jan 1, 2027 Va. Code 40.1-28.10(C).
$15.00 from Jan 1, 2028 Va. Code 40.1-28.10(D); indexed from January 1, 2029. source Public record

How it is set

Scheduled steps in law: Steps in statute to $15.00 in 2028; from January 1, 2029 adjusted annually by the U.S. CPI-U for all items, never below zero. Announced: By October 1 each year starting 2028, for the following January 1 Va. Code 40.1-28.10, as amended by 2026 Acts chapters 350 (HB 1) and 351 (SB 1) source Public record

Tipped employees

2026: cash wage $2.13, tip credit $10.64 Tipped employees receive more than $30 a month in tips. State law lets the employer count tips toward the wage and sets no separate cash floor; the DOLI poster cites the federal $2.13. Tip credit is $12.77 less $2.13.
2027: The 2027 notice is not yet published. source Public record

Youth and training wages

Employees in an employer on-the-job or other training program of up to 90 days may be paid the greater of the federal minimum wage or 75% of the Virginia minimum wage. Persons under 16, and persons under 18 in school full time working no more than 20 hours a week, are excluded from the Act. source Public record

Poster

2026 Virginia Minimum Wage Notice (English and Spanish)

Recent and coming changes

• Jan 1, 2027 Minimum wage rises to $13.75 (2026 Acts chapters 350 and 351, HB 1 and SB 1). source Public record
• Jan 1, 2027 Farm laborers and farm employees are no longer excluded from the Virginia Minimum Wage Act (2026 Acts chapters 357 and 358, HB 20 and SB 121). source Public record
• Jan 1, 2028 Minimum wage rises to $15.00. source Public record
• Jan 1, 2029 Annual CPI-U indexing resumes; the Commissioner sets the rate by October 1, 2028 and each year after. source Public record
• Jul 1, 2030 The exclusion for individuals with disabilities paid a subminimum wage under a federal certificate held before July 1, 2023 ends. source Public record

The Act does not exempt employees by employer size. The 2026 notice's line that annual adjustments will continue predates the 2026 amendments, which replaced indexing with steps through 2028. Bill numbers for the 2026 chapters come from the links in the Code's historical citations.

Not confirmed: Local minimum wages: no Virginia statute or DOLI statement on whether localities may set their own minimum wage was found, and none is listed by DOLI. 2027 tipped cash wage and tip credit: await the 2027 DOLI notice (the federal $2.13 would give a $11.62 credit at $13.75, not confirmed by a Virginia source). The training wage rate (75% of $12.77 is $9.58 rounded, or the federal minimum if higher) is not stated in dollars by DOLI. The session law texts (lis.virginia.gov bill pages) were not read; the rates come from the Code as amended.

Minimum wage in every state

Paid family and medical leave

Checked Nov 3, 2026. Enacted, not yet collecting

Virginia enacted a Paid Family and Medical Leave Insurance Program in 2026 (Code of Virginia sections 60.2-800 to 60.2-818), run by the Virginia Employment Commission. Payroll contributions begin April 1, 2028 and benefits December 1, 2028, so nothing is collected in 2026 or 2027; the first rate (for 2028) will be set by October 1, 2027, on wages up to the Social Security wage base. The contribution is split 50/50 between employer and employee, and employers of 10 or fewer employees remit only the employee half.

Paid Family and Medical Leave Insurance Program

Kind and agency

Family and medical. Virginia Employment Commission (VEC). Code of Virginia, Title 60.2, Chapter 8, sections 60.2-800 to 60.2-818 (2026 Acts, chapters 981 and 1093: SB 2 and HB 1207).

Started

Contributions from Apr 1, 2028. Benefits from Dec 1, 2028.

Contribution rate

2027: not published No contributions in 2027. The rate for calendar year 2028 is to be fixed by October 1, 2027, on sound actuarial principles (also for 2029); from 2030 it is adjusted to keep the projected fund balance at no less than 40 percent of program expenditures.
2026: not published No contributions in 2026. source Public record

Wage base

2028: no dollar cap Contributions are not required on wages above the Social Security Administration's contribution and benefit base (42 U.S.C. 430) for the year. source Public record

Who pays

Employer: An employer of more than 10 employees remits the full contribution and pays whatever it does not deduct from wages (at least 50 percent unless the employee agrees to less being withheld). Employee: 50 percent of the contribution, or a lesser percentage agreed between employer and employee. Yes. The employer deducts the employee share from wages, and may pay all or part of it instead; a deduction may not bring pay below the minimum wage. source Public record

Small employers

10 or fewer employees. Deducts the employee share (50 percent of the contribution an employer of more than 10 employees would owe), remits it, and owes no employer contribution. The statute defines employer by reference to the unemployment law (section 60.2-210); how employees will be counted for the threshold is not yet published. source Public record

Private plans

Allowed. An employer may apply to the VEC to use a private plan (insured, with policy forms approved by the Commission, or self-insured with proof of financial capacity) that gives benefits equal to or greater than the state program and charges employees no more than the state contribution. Approval is renewed every two years with a fee set by the Commissioner. No application process has been published yet. source Public record

Benefits

Up to 12 weeks a year (up to 4 weeks for safety services related to domestic violence, sexual assault or stalking). 80 percent of average weekly wages in the base period; minimum $100 a week. source Public record

Recent and coming changes

• Apr 22, 2026 Paid Family and Medical Leave legislation enacted (SB 2 and HB 1207; 2026 Acts, chapters 981 and 1093). source Public record
• Jun 15, 2026 VEC published a Notice of Intended Regulatory Action for the program's regulations. source Public record
• Oct 1, 2027 Deadline for the VEC Commissioner to fix the 2028 contribution rate. source Public record
• Apr 1, 2028 Payroll contributions begin. source Public record
• Dec 1, 2028 Benefits become available. source Public record

The Commonwealth is not an employer under the program; state employees get a similar benefit through the Department of Human Resource Management. Self-employed individuals may opt in and pay the employer's share on self-employment income. A private family leave insurance policy sold under section 38.2-107.2 satisfies the program only if, together with a temporary disability insurance policy, it meets the private plan standards. The maximum weekly benefit is 100 percent of the state average weekly wage figure the VEC adjusts each September 30, effective the next January 1. Benefit eligibility requires at least $3,000 of earnings in each of two of the last five quarters.

Not confirmed: Contribution rate: none set; the 2028 rate is due by October 1, 2027. Filing: the report, due dates, portal and registration have not been published; the statute says only that contributions are remitted in the form and manner the Commission determines, starting April 1, 2028. How employees are counted for the 10-or-fewer small employer rule is not yet published. The 2028 maximum weekly benefit in dollars is not published. The enrolled bills (SB 2, HB 1207) on lis.virginia.gov load by script and were not read; the codified sections and their history line were read instead.

Paid leave in every state

Sick leave and time off

Checked Nov 5, 2026. Paid sick leave

Today Virginia's paid sick leave law covers only home health workers who serve Medicaid consumer-directed care recipients and work on average at least 20 hours a week or 90 hours a month: 1 hour per 30 hours worked, up to 40 hours a year. A 2026 law (HB 5 and SB 199) extends paid sick leave to most employees from July 1, 2027 at employers of 50 or more, January 1, 2028 at 25 or more and January 1, 2029 at all employers; job-protected paid family and medical leave starts with the state program's benefits on December 1, 2028. No statute requires paying out vacation at separation; the Department of Labor and Industry treats vacation and PTO as fringe benefits it does not enforce.

Paid sick leave

The law

Paid sick leave for home health workers (Code of Virginia, Title 40.1, Chapter 3, Article 2.1) source Public record

Employers covered

Any employer (as defined in Va. Code 40.1-2) of a covered home health worker; no size threshold. Federal agencies are excluded.

Employees not covered

Covers only home health workers: individuals who provide personal care, respite or companion services to an individual who receives consumer-directed services under the state plan for medical assistance services, and who work on average at least 20 hours a week or 90 hours a month. Excluded: an individual who is licensed, registered or certified by a health regulatory board in the Department of Health Professions, is employed by a hospital licensed by the Department of Health, and works on average no more than 30 hours a month. All other employees are not covered until the 2026 law takes effect (see changes).

How it builds up

At least 1 hour for every 30 hours worked; overtime-exempt employees are assumed to work 40 hours a week unless their normal workweek is shorter. Paid at the employee's normal hourly rate with the same benefits, including health care benefits, and not less than the state minimum wage without a tip credit.

Yearly cap

An employee may not accrue or use more than 40 hours a year unless the employer sets a higher limit. No separate balance cap is stated.

Front-loading

Allowed: the employer may give all the leave an employee is expected to accrue in a year at the beginning of the year.

When use can start

Leave begins to accrue at the start of employment; the article sets no waiting period before use.

Carryover

Unused leave carries over to the following year (the 40-hour yearly accrual and use limit still applies).

Allowed uses

The employee's own or a family member's mental or physical illness, injury or health condition, diagnosis, care or treatment, or preventive care. Family members: children (any age, including adopted, foster, step, wards and in loco parentis), parents and the spouse's parents, legal guardians, the spouse, grandparents, grandchildren and siblings of the employee or the spouse, anyone the employee is responsible for providing or arranging care for, and anyone related by blood or affinity whose close association is the equivalent of a family relationship.

Notice and documentation

The request may be oral, written or electronic and should give the expected duration when possible; for foreseeable leave the employee makes a good faith effort to give advance notice and schedule it to avoid undue disruption. An employer that requires notice must give employees a written notice policy, or it may not deny leave for noncompliance. For 3 or more consecutive work days the employer may require reasonable documentation. The employer may not require the employee to find a replacement or work an alternate shift.

At the end of employment

Article 2.1 does not address payout at separation or restoring a rehired employee's balance.

PTO policies

Yes: a paid leave or PTO policy, or a bona fide collective bargaining agreement, that gives enough paid leave usable for the same purposes and under the same conditions satisfies the law.

Employer duties

Article 2.1 sets no posting, written notice, pay stub or recordkeeping requirement (beyond the written notice policy an employer must give if it requires notice).

Enforcement

Va. Code 40.1-33.6 bars discharge, discipline, threats or other retaliation for requesting or using leave or alleging a violation. Article 2.1 names no enforcing agency, civil penalty or private right of action.

Citation

Va. Code 40.1-33.3 to 40.1-33.6, HB 2137 (2021 Special Session I), 2021 Acts, Special Session I, chapter 449, in effect since Jul 1, 2021

Agency guidance

doli.virginia.gov

Local laws: No statute was found that expressly bars cities or counties from requiring paid leave, and no local paid sick leave ordinance was found. The 2026 law says nothing in it preempts, limits or otherwise affects any other law, regulation, requirement, policy or standard that provides for greater accrual or use of paid sick leave. (Va. Code 40.1-33.6:2(K) (effective July 1, 2027)) source Public record

Family and medical leave

The law

Job protection under the Paid Family and Medical Leave Insurance Program (Va. Code 60.2-808), from December 1, 2028, Va. Code 60.2-801, 60.2-803 and 60.2-808 source Public record

Employers covered

Employers as defined in the unemployment compensation law (Va. Code 60.2-210); the Commonwealth is not an employer under the program.

Who is eligible

A covered individual who receives program benefits and has been employed by the current employer for at least 120 days before the leave begins.

How long

Benefits for up to 12 weeks in a benefit year; on return the employee is restored to the same or an equivalent position, and the employer must keep up health care benefits during the leave.

Reasons

Caring for a new child (birth, adoption or foster care), the employee's own serious health condition, caring for a family member with a serious health condition, military family needs, and domestic violence, sexual assault or stalking. Until benefits start on December 1, 2028, Virginia relies on the federal FMLA for job-protected family and medical leave.

Paid?

Paid by the Paid Family and Medical Leave Insurance Program run by the Virginia Employment Commission (on this site's paid leave page); benefits start December 1, 2028.

Wage replacement: Paid Family and Medical Leave Insurance Program. Contribution rates and benefits

Vacation and PTO at the end of employment

Employer policy controls No statute requires paying out unused vacation. The wage payment law's definition of wages (Va. Code 40.1-29) lists pay such as salaries, overtime, commissions, tips and bonuses but not vacation, and the Department of Labor and Industry's wage claim form says vacation leave, paid time off and severance are fringe benefits it does not enforce; an employee who believes a fringe benefit is owed may sue the employer. Any right to payout therefore rests on the employer's policy or agreement. (Va. Code 40.1-29; DOLI Claim for Unpaid Wages form (LL-POW-01, 08/2026)) source Public record

Other leave the law requires

Recent and coming changes

• Jul 1, 2027 Paid sick leave for most employees (new Article 2.1:1, Va. Code 40.1-33.6:1 to 40.1-33.6:7; HB 5 and SB 199, 2026 Acts chapters 1128 and 1129, signed May 20, 2026). Employers of at least 50 employees from July 1, 2027, at least 25 from January 1, 2028 and at least 1 from January 1, 2029, including the Commonwealth and localities. 1 hour per 30 hours worked, up to 40 hours accrued or used a year unless the employer sets more; carryover; front-loading 40 hours satisfies accrual; adds absences for domestic violence, sexual assault or stalking; minimum use increment no more than 4 hours. No payout at separation, but the balance is reinstated on rehire within 12 months unless paid out. Excludes the home health workers covered by Article 2.1, railroad employers and employees under 45 U.S.C. 351, as-needed (pro re nata) licensed health care workers at licensed facilities, and certain licensed part-time health workers; delayed for some Longshore and Harbor Workers' Compensation Act bargaining units until their agreement expires or December 31, 2030. Written notice, posting and 3-year records under Department of Labor and Industry regulations; knowing violations carry civil penalties up to $150, $300 and $500, and employees may sue for twice the unpaid leave and twice actual damages. enacted source Public record
• Sections 40.1-33.6:1 and 40.1-33.6:3 of the 2026 sick leave law also cite 2026 Special Session I, chapter 1; a Governor's amendment to that session's budget bill (HB 30) describes several changes to chapters 1128 and 1129. enacted source Public record
• Dec 1, 2028 Job protection (restoration and continued health benefits) for employees with 120 days of service who receive Paid Family and Medical Leave Insurance Program benefits, which start December 1, 2028 (2026 Acts chapters 981 and 1093). enacted source Public record

What was checked: Checked the Code of Virginia (Title 40.1 chapter 3, Articles 2.1, 2.1:1 and 2.2; 18.2-465.1; 44-93.2 and 44-93.3; 60.2-800 to 60.2-808), the 2021 HB 2137 bill record, the Governor's May 20, 2026 release and the Department of Labor and Industry's wage claim form and paid sick leave rulemaking page (DOLI published a proposed regulation on November 2, 2026, with comments through January 1, 2027, and must adopt a final regulation by July 1, 2027). The 2026 law's text was read in the Code as codified (effective July 1, 2027). The Paid Family and Medical Leave Insurance Program's contributions are on this site's paid leave page. Va. Code 24.2-118.1 (election officers) was repealed in 2020; no private-employer voting leave law was found. No state law requiring private employers to give holidays off or holiday premium pay was found.

Not confirmed: Which of HB 5 and SB 199 is chapter 1128 and which is 1129: the LIS bill pages (https://lis.virginia.gov/bill-details/20261/HB5) are script-only; the government index lists CHAP1128 under HB5. The changes made by 2026 Special Session I, chapter 1 to the sick leave law were not read; the budget amendment PDF (https://budget.lis.virginia.gov/get/amendmentpdf/5274/) was seen only as a government index summary. Whether the 2027 employer size thresholds count employees in Virginia only or everywhere is not stated in the statute; DOLI's proposed regulation (Virginia Regulatory Town Hall) was not read. Pregnancy accommodation under the Virginia Human Rights Act (Va. Code 2.2-3909): the LIS page returned an error page and was not read, so any leave it may require is not listed. No private-employer bereavement, school activity, domestic violence leave (before July 1, 2027) or voting leave statute was found in the searches made; not exhaustively confirmed.

Federal law adds unpaid FMLA leave at employers with 50 or more employees and paid sick leave for federal contractors. Sick leave and time off in every state

Retail sales and use tax

Checked Nov 3, 2026

Virginia's state retail sales and use tax rate is 4.3%; with local and regional taxes the general rate is 5.3% in most of the state, 6% in Central Virginia, Hampton Roads and Northern Virginia, 6.3% in eight localities and 7% in James City County, Williamsburg and York County, all filed with Virginia Tax. A remote seller must register once it has more than $100,000 in gross revenue from retail sales in Virginia, or 200 or more separate retail transactions, in the previous or current calendar year.

State rate

4.3% Va. Code § 58.1-603
Food for human consumption and essential personal hygiene products: no state tax since January 1, 2023, only the local taxes under §§ 58.1-605 and 58.1-606 (Va. Code § 58.1-611.1). Aircraft, watercraft and motor vehicles are taxed at other rates. source Public record

Local taxes

Yes, collected by the state. General rates by location: 7% in James City County, Williamsburg and York County; 6.3% in Charlotte, Gloucester, Halifax, Henry, Northampton, Patrick and Pittsylvania Counties and Danville; 6% in the Central Virginia, Hampton Roads and Northern Virginia regions; 5.3% everywhere else. Virginia Tax publishes a map lookup and a downloadable rate table. The additional local tax for school construction is administered by the Tax Commissioner in the same manner as the state tax. Rate lookup source Public record

Remote sellers

$100,000 or 200 transactions; counts gross: gross revenue from retail sales in Virginia (sales of all commonly controlled persons are aggregated) sales; previous or current calendar year; since Jul 1, 2019. No later than 30 days from the day the dealer establishes economic nexus (Virginia Tax guidelines of June 27, 2019). Virginia Tax's retail sales page describes the test as more than $100,000 in annual Virginia gross sales or 200 or more transactions to Virginia customers; the statute says the previous or current calendar year. A remote seller's sales made only through a marketplace facilitator do not require it to register. source Public record

Marketplace facilitators

Must collect (More than $100,000 in annual gross revenue, or 200 or more transactions, sold or facilitated to Virginia customers in the previous or current calendar year, counting direct and facilitated sales together; a waiver is available in limited cases.), since Jul 1, 2019 source Public record

Streamlined Sales Tax

Not a member source Public record

Registration

Sales Tax Certificate of Registration (Form ST-4), with a 15-digit sales tax account number Register Register online with Virginia Tax. In-state dealers' account numbers begin with 10; out-of-state dealers (remote sellers) register in the same system and their account numbers begin with 12. The certificate must be displayed at the registered location. source Public record

Filing

• monthly: assigned by Virginia Tax based on tax liability (threshold not stated)
• quarterly: assigned by Virginia Tax based on tax liability (threshold not stated)

Due: 20th day of the month after the filing period: monthly returns by the 20th of the next month; quarterly returns by April 20, July 20, October 20 and January 20. Returns are due even with no sales.
Electronic filing: Required: sales tax must be filed and paid electronically (Online Services, eForms or Web Upload); a dealer that cannot must request an electronic filing waiver.
Vendor discount: Dealer discount on the first 3% of the state tax in timely returns: 4% for monthly taxable sales of $0 to $62,500, 3% for $62,501 to $208,000, 2% for $208,001 and above (Va. Code § 58.1-622).
Virginia Tax Online Services source Public record

Certificates

Resale: Form ST-10, Sales and Use Tax Certificate of Exemption, for a Virginia dealer buying for resale, lease or rental, or packaging (not for cigarettes for resale).
Exemptions: Each exemption that requires a certificate has its own form in the Virginia Tax forms library (for example ST-11, ST-12, ST-16, ST-18); the certificate relieves the seller of liability unless the Tax Commissioner gives notice it is no longer acceptable (Va. Code § 58.1-623). source Public record

Recent and coming changes

• Jul 1, 2026 Every county and city may now adopt, by referendum, an additional 1% local sales and use tax for school construction or renovation (in Planning District 8, also public transportation); before, only nine localities could (2026 Appropriation Act, HB 30, Special Session I, Chapter 1). source Public record
• Jul 1, 2026 Exemption for bullion and legal tender coins extended from July 1, 2026 to July 1, 2028. source Public record
• Jul 1, 2026 Exemption for natural gas and oil drilling and extraction equipment extended from July 1, 2026 to July 1, 2028. source Public record
• Jul 1, 2026 Cash transactions may be rounded to the nearest five cents (HB 954, Chapter 713); taxes are calculated on the price before rounding. source Public record

Rates on the agency page are combined general rates (state 4.3% plus the 1% local tax plus any regional or local add-on).

Not confirmed: Registration fee: not stated on the pages read. Monthly versus quarterly assignment thresholds are not stated on the retail sales page. Dealer discount: Va. Code § 58.1-622 sets the schedule; whether an Appropriation Act provision currently limits or suspends it was not checked. Whether Virginia accepts the MTC Uniform Sales and Use Tax Certificate or the Streamlined certificate was not confirmed. Which localities adopt the newly allowed additional 1% tax, and when, was not checked.

Sales tax in every state

Credit card surcharges

Checked Nov 4, 2026. No state surcharge law

Virginia has no general law limiting a seller's credit card surcharge; a 2008 Attorney General opinion found no Virginia Code provision barring the pass-through of card fees. Public bodies may add a charge up to their cost of accepting the card, and landlords may charge a card payment fee only if a no-fee payment method is offered and only up to the third-party processing cost. Since 2025 an advertised price must include all mandatory fees or surcharges, and Virginia Tax treats a card fee charged with a taxable sale as part of the taxable sales price.

The rule

No Virginia statute limiting a seller's credit card surcharge in general was found. Attorney General Opinion 08-060 (October 20, 2008) said the Attorney General was not aware of any Virginia Code provision prohibiting the practice of passing credit card merchant fees through to the payer.

Exceptions

Public bodies collecting taxes, fees, fines and other charges may add a sum not over the amount charged to them for accepting the payment, or the contract amount if less, and a state agency must waive the charge when card payments reduce its other processing and bad check costs by at least as much (Va. Code § 2.2-614.1(B)). A residential landlord may not charge a fee for processing rent, a security deposit or other payments unless it offers a payment method with no added fee, and any fee for a credit card, debit card or electronic payment may not exceed the landlord's actual out-of-pocket cost charged by a third party (Va. Code § 55.1-1204(J)).

Agency guidance

oag.state.va.us

Cash discounts

No Virginia statute on cash discounts was found. The 2025 total price law says it is not a violation to display a promotion or discount, including an offer to waive one or more mandatory fees (Va. Code § 59.1-609(A)). source Public record

Sales tax on the surcharge

Depends Taxable when charged in connection with a taxable sale. Virginia Tax held that a credit card fee charged with the sale of tangible personal property must be included in the taxable sales price under Va. Code § 58.1-602 (Ruling of the Tax Commissioner P.D. 23-16, February 21, 2023), and that a hotel's separately itemized credit card fee on accommodations, banquets and catering would be subject to tax (P.D. 26-24, May 11, 2026). Both rulings apply the true object test of 23 VAC 10-210-4040; in P.D. 05-11 a fee for buying or reloading a prepaid credit card was held not taxable. source Public record

Price display and fee laws

• Mandatory fees or surcharges; total price disclosure (Va. Code §§ 59.1-607 to 59.1-610 (2025 Acts, cc. 685 and 686)): A supplier may not advertise or display a price for goods or services in a consumer transaction without clearly and conspicuously displaying the total price, including all mandatory fees or surcharges, meaning any fee or surcharge that must be paid to buy the advertised good or service. The law does not name card surcharges; a fee charged only to customers who choose to pay by card is not addressed in the text. Exclusions include government taxes and fees, reasonable shipping, motor vehicle dealer fees authorized by law, utility and telecommunications fees, settlement services and air carriers. A violation is a prohibited practice under the Virginia Consumer Protection Act. source Public record

What was checked: Checked the Code of Virginia on law.lis.virginia.gov: the Virginia Consumer Protection Act § 59.1-200 (no surcharge or electronic fund transfer fee item in the current text), Chapter 58 of Title 59.1 (§§ 59.1-607 to 59.1-610), § 2.2-614.1 and § 55.1-1204. In 2024 the General Assembly passed HB 1519 (2024 Acts, Chapter 838), which would have made charging a transaction or processing fee or similar surcharge for an electronic fund transfer a prohibited practice under § 59.1-200 and barred landlords from charging such fees, but the act said it would not take effect unless reenacted by the 2025 Session; the current § 59.1-200 has no such item, so it did not take effect. Attorney General Opinion 08-060 answered a question from the Virginia State Bar about the State Bar and private attorneys passing card fees to licensees and clients.

Not confirmed: Effective date of 2025 Acts, cc. 685 and 686 (Va. Code §§ 59.1-607 to 59.1-610): not shown on the Code pages read; the bill history at https://lis.virginia.gov/bill-details/20251/HB2515 needs a browser (the legacy LIS page had no 2025 record). Whether a credit card surcharge that a customer can avoid by paying another way is a mandatory fee or surcharge under Va. Code § 59.1-607: no Attorney General guidance on the 2025 law was found. The year the card fee rule in Va. Code § 55.1-1204(J) for landlords took effect was not traced.

Federal law and the card networks' own rules apply in every state. Surcharge rules in every state

Pass-through entity tax

Checked Nov 3, 2026. Elective pass-through entity tax (PTET), Form 502PTET

Any pass-through entity can elect each year to pay a 5.75% Virginia tax at the entity level on the shares of its eligible owners (individuals, estates and trusts that own it directly), on Form 502PTET filed electronically by the extended due date, or earlier by making a PTET estimated or extension payment. Eligible owners claim a refundable credit for their share, shown on Schedule VK-1, and add back the tax deducted by the entity. The 2026 amendments to the 2025 Appropriation Act removed the sunset, so the tax no longer ends after taxable year 2026.

Law

Va. Code § 58.1-390.3 (tax); § 58.1-332 C 2 (credit for taxes paid to other states). HB 1121 and SB 692, 2022 Acts of Assembly chapters 690 and 689; amended 2023, cc. 686 and 687; 2025, c. 725; 2026, c. 7. First tax year 2021. source Public record

Who can elect

Any pass-through entity, including limited partnerships, limited liability partnerships, general partnerships, LLCs, professional LLCs, business trusts and S corporations. An entity that does not do business in Virginia or have Virginia source income may elect on behalf of its Virginia resident owners. All pass-through entities can make the election, but only eligible owners can claim the credit: a direct owner who is a natural person subject to the Virginia individual income tax, or an estate or trust subject to the Virginia fiduciary income tax. The tax applies only to the eligible owners' shares. Since taxable year 2023 the entity no longer has to be 100% owned by natural persons or persons eligible to be S corporation shareholders. The credit can only be claimed by direct owners. A credit allocated to an estate or trust cannot be passed on to its beneficiaries. Withholding for nonresident corporate owners is reported on the same Form 502PTET. source Public record

Election

For taxable years beginning in 2023 or later, by making a PTET estimated payment, making a PTET extension payment, or filing Form 502PTET (instead of Form 502) by the extended due date, with the first box on page 1 marked to confirm the election and certify owner consent. Payments and returns must be electronic. The entity, which must obtain consent from its eligible owners; once made, the election binds all eligible owners, who cannot opt out with the Department. Deadline: On or before the due date for filing Form 502PTET, including any automatic extension (for a calendar year entity, filed by October 15 to stay within the 6 month extension). Made each year. Once Form 502PTET is filed, the election is binding for that taxable year. The sources do not describe revoking an election made only by payment before the return is filed. source Public record

Rate

2027: 5.75% Same as 2025. The statute imposes the 5.75% tax annually for taxable years beginning on and after January 1, 2022, with no end date, after the 2026 amendments removed the sunset.
2026: 5.75% Same as 2025.
2025: 5.75% Virginia taxable income attributable to eligible owners only: residents' shares of all income, and nonresident eligible owners' shares limited to Virginia source income, with the federal deduction for state and local income taxes eliminated. Separately stated deductions are included, limited as for a C corporation. source Public record

Estimated payments

Since taxable year 2023, an electing entity must make estimated payments if its PTET for the year can reasonably be expected to exceed $1,000, under the corporate income tax rules. Payments are electronic only, through eForm PTET-PMT or an ACH credit. Underpayment: an addition to tax at the underpayment interest rate under Va. Code § 58.1-504 unless an exception applies. Penalties follow the corporate rules: a 2% per month extension penalty if 90% of the tax is not paid by the original due date, and a 6% per month late payment penalty up to 30%. Calendar year: 25% each by April 15, June 15, September 15 and December 15. Fiscal year: the 15th day of the 4th, 6th, 9th and 12th months after the year begins. source Public record

Return

Form 502PTET with Schedule PTET ADJ, a Schedule VK-1 for each owner, Schedule 502A if apportioning, and the federal Form 1065 or 1120-S with Schedule K, filed through Federal/State e-File or Online Services for Businesses. Paper is not accepted. An electing entity may not file the Form 765 composite return. Due 15th day of the 4th month after the close of the taxable year (April 15 for calendar year entities). Automatic, to 6 months after the due date or 30 days after the federal extended due date, whichever is later. The extension does not extend the payment due date. An entity that files after the extended date cannot file Form 502PTET unless it made corresponding estimated or extension payments. source Public record

Owner credit

Eligible owners claim the Pass-Through Entity Elective Tax Payment Credit for their share of the tax, reported on Schedule VK-1, on Schedule CR with the individual or fiduciary return, after adding back the state and local income tax deducted by the entity. Owners cannot claim the credit until Form 502PTET and its schedules are filed. Yes. Any excess over the owner's tax is treated as an overpayment and refunded. Nonresident eligible owners are taxed through the entity on their Virginia source share and claim the same refundable credit on their nonresident return. For grantor trusts the VK-1 is coded RES or NON by the owner's return type. Credit for other states' PTET: Virginia allows its residents a credit for taxes paid to other states under laws substantially similar to the Virginia PTET. Virginia Tax says this overrules Public Document 21-156, which had generally denied credit for Maryland's elective pass-through entity tax. It does not apply to franchise, privilege, business, license or occupation taxes. The agency does not list qualifying states. source Public record

Recent and coming changes

• Jan 1, 2023 Removed the requirement that the entity be 100% owned by natural persons or persons eligible to be S corporation shareholders, and allowed the election to be made by an estimated or extension payment, from taxable year 2023. source Public record
• Sunset extended from January 1, 2026 to January 1, 2027, so the tax covered taxable years 2021 through 2026. source Public record
• The 2026 amendments to the 2025 Appropriation Act removed the sunset: the PTET becomes permanent and does not expire after taxable year 2026. The statute's history cites 2026, c. 7. source Public record

The 2025 Form 502PTET instruction package (Rev. 08/26) still describes the tax as covering taxable years 2021 to 2026; the 2025 Form 502 instructions and the current statute show the sunset removed. Virginia Tax does not say whether the change was made because of the 2025 federal law.

Not confirmed: The effective date of the 2026 sunset removal (2026, c. 7) was not found in a Virginia Tax document; the date the chapter was approved should be confirmed in the 2026 Acts of Assembly. Whether the original January 1, 2026 sunset was tied in law to the federal SALT cap was not confirmed from a primary source; the 2024 instructions only state the date. No Virginia Tax document read for this run says whether an election made by payment can be withdrawn before Form 502PTET is filed.

Pass-through entity tax in every state

Conformity to the 2025 federal tax law

Checked Nov 3, 2026. Business tax: corporate income tax

Virginia conforms to the Internal Revenue Code as it existed on December 31, 2025, plus later federal extenders, under Va. Code section 58.1-301 as amended by the 2026 Amendments to the 2025 Appropriation Act (House Bill 29, Chapter 7, enacted February 20, 2026), which replaced rolling conformity with that fixed date. That brings in most of Public Law 119-21, but Virginia decouples from domestic research expensing (section 174A, including the catch-up), the higher section 179 limits and qualified production property expensing, keeps its long-standing decoupling from bonus depreciation, and cut its subtraction for disallowed business interest to 20%. The tips, overtime, car loan and senior deductions do not reach the Virginia return, which starts from federal adjusted gross income.

Follows the Code

Fixed date, Code as of Dec 31, 2025. Va. Code section 58.1-301(B), as amended by 2026 Acts of Assembly, Chapter 7 (House Bill 29)
Virginia also conforms automatically to any later federal amendment that extends the expiration date of a provision Virginia conforms to or has conformed to. Virginia Tax describes the 2026 change as replacing rolling conformity with a fixed date. Exceptions listed in section 58.1-301(B) apply to both individuals and corporations. source Public record

Starting point

Individuals: federal adjusted gross income
Corporations: federal taxable income source Public record

Response to Public Law 119-21

Partly adopted. 2026 Amendments to the 2025 Appropriation Act, House Bill 29, Chapter 7 of the 2026 Acts of Assembly, effective on enactment February 20, 2026. Years: Taxable year 2025 and later
Virginia Tax: except where noted, Virginia conforms to PL 119-21 to the extent it affects federal adjusted gross income or federal itemized deductions for individuals, or federal taxable income for corporations. Decoupled: qualified production property expensing (section 168(n)), domestic research expensing (section 174A, including retroactive and catch-up provisions) and the higher section 179 limits. The section 163(j) change is followed, but the Virginia subtraction for federally disallowed business interest drops from 50% to 20% for 2025 and later. Virginia keeps the Pease limit on itemized deductions instead of the new federal limit. source Public record

Provision by provision

Other differences

• Qualified production property (section 168(n)): Virginia decouples from immediate expensing. source Public record
• Itemized deduction limit: Virginia does not follow the new federal overall limit and keeps the Pease limitation as it existed before PL 119-21 (section 58.1-301(B)(5)). source Public record
• SALT cap: Virginia generally applies no SALT cap to Virginia itemized deductions, but taxpayers subject to the Virginia overall limitation apply the federal cap for the year, including the higher PL 119-21 cap, in that calculation. source Public record

Guidance from the state

• Feb 20, 2026 Tax Bulletin 26-1: Virginia's rolling conformity to the Internal Revenue Code replaced with a fixed date of December 31, 2025
• Jul 6, 2026 2026 Legislative Summary (Virginia Department of Taxation)
• 2025 Form 760 Instructions, Conformity Update for 2025

Recent and coming changes

• Feb 20, 2026 Eligible educator expense deduction reinstated for taxable year 2026 and later (House Bill 29, Chapter 7, and House Bill 30, Special Session I, Chapter 1). source Public record

The tips, overtime, car loan and senior entries rest on the starting point (federal adjusted gross income) and Virginia Tax's statement that conformity reaches PL 119-21 only where it affects federal adjusted gross income or itemized deductions; Virginia Tax has not published a statement naming those four deductions.

Not confirmed: Virginia Tax's web guidance on how to report the PL 119-21 deconformity adjustments (referred to in Tax Bulletin 26-1) was not located. No statement from Virginia Tax naming the federal tips, overtime, car loan interest or senior deductions.

Conformity in every state

Pay in job postings

Checked Nov 2, 2026. Pay required in job postings

Since July 1, 2026, every Virginia employer must state the wage, the salary, or a good faith wage or salary range in each public and internal posting for a job, promotion, transfer or other employment opportunity. The same law bars employers from seeking or relying on an applicant's pay history. The Attorney General can seek civil penalties, and applicants and employees can sue, but an employer that fixes a posting within 15 business days of written notice cannot be sued over that posting.

Recent and coming changes

• Jul 1, 2026 Va. Code 40.1-28.7:12 (pay in postings and a salary history ban) took effect. Enacted in the 2026 regular session (chapters 996 and 1063); in effect source Public record

Salary history ban: Yes (Va. Code 40.1-28.7:12(B)(1) to (3)). An employer may not seek, or rely on, a prospective employee's wage or salary history. If the applicant volunteers it without prompting, the employer may rely on it, and confirm it, to support pay higher than its initial offer, if that does not violate the equal pay law (40.1-28.6) or federal law. source Public record

What was checked: The posting rule sits in Title 40.1, Chapter 3 (Protection of Employees), next to the equal pay section (40.1-28.6) and the ban on limiting employees' sharing of wage information (40.1-28.7:9). No Virginia city or county ordinance on pay in postings was found.

Not confirmed: Bill numbers: news and law firm reports name the bills as HB 636 and SB 215 of 2026, signed April 22, 2026; LIS (lis.virginia.gov) is a script-driven site and the bills, chapters and signing date could not be read there, so they are left out. The chapters' text (2026 Acts of Assembly cc. 996 and 1063) was not read, so any uncodified clause (for example a delayed date or a sunset) is not ruled out. No Attorney General or Department of Labor and Industry guidance on the posting rule was found (remote jobs, third parties, public employers). Local ordinances were not surveyed city by city.

Pay transparency rules in every state

For tax professionals

Checked Nov 3, 2026. Virginia Department of Taxation (Virginia Tax)

Virginia's power of attorney is Form PAR 101, and Virginia Tax also accepts a federal Form 2848 that specifies the Virginia tax matters (form number and periods), though representatives named that way do not get automatic copies of correspondence. No Virginia registration or licensing of paid preparers was found. Paid preparers who prepare 50 or more individual income tax returns a year must e-file them, and fiduciary returns must be e-filed; a client who opts out is shown with filing election code 2 on Form 760.

Power of attorney

Form PAR 101, Power of Attorney and Declaration of Representative; Form R-7, Application for Enrollment as Virginia Authorized Agent, registers the representative to receive copies of correspondence. A person, not a business: a preparer can be appointed, but not the preparer's office. The tax matters and beginning and ending periods listed in Section 3: any past periods and up to 3 years in the future (the current year plus 3). The representative can receive and inspect confidential tax information and take the same actions as the taxpayer, but not request a copy of a tax return, receive refund checks, substitute another representative, sign certain returns, or consent to a disclosure. Mail to Virginia Department of Tax, PO Box 1114, Richmond, VA 23218-1114, or fax 804.254.6115. Taxpayer and representative must both sign by hand; electronic or stamped signatures are not accepted. Processing: Up to 2 weeks for PAR 101; 1 week for Form R-7. form source Public record

Federal Form 2848

Accepted with conditions Federal Form 2848 is accepted if the Virginia tax matters (form number and tax periods) are specified. Representatives named on a 2848 or other alternative authorization do not receive automatic copies of correspondence. Federal Form 8821 is not accepted as a POA. source Public record

Information only

No separate information authorization form. Virginia Tax will discuss routine issues (a return filed or a payment made by the tax professional) with a CPA, enrolled agent, tax preparer or payroll service provider without a PAR 101, once it verifies the person and the relationship. Federal Form 8821 is not accepted as a POA. On the return: Form 760 oval: "I (We) authorize the Department of Taxation to discuss my (our) return with my (our) preparer", for the tax year being filed. source Public record

Preparer registration

No program found

Preparer ID on returns

For taxable years beginning on or after January 1, 2019, the preparer with primary responsibility for the return must include a PTIN on the return. No state preparer number on the return; a representative registered with Form R-7 has a 9-character Authorized Agent Number for PAR 101. PTIN: required. source Public record

E-file mandate for preparers

Paid preparers who prepare, or employ people to prepare, 50 or more individual income tax returns a year must file electronically, and must keep doing so in every later year; all fiduciary income tax returns prepared by a tax preparer must be e-filed. Individual and fiduciary income tax returns. Separately, any business or person filing for a business must e-file sales and use, employer withholding, corporate income, pass-through entity and several other business returns and payments. Client opt-out: Filing Election field at the bottom of page 2 of Form 760: code 2, taxpayer opted out of electronic filing (other codes: 3, fewer than 50 returns; 4, return cannot be accepted electronically; 5, hardship waiver; 6, not yet approved as an ERO). Hardship waiver: Form 8454P. source Public record

Transcripts and account records

Copy of a return: mail Form VA-1, Request for Copy of Tax Return, with a $5 fee per return to Virginia Department of Taxation, PO Box 1317, Richmond, VA 23218-1317. Transcript: mail the name, business name, SSN or Virginia Tax account number, tax year and tax type to Office of Customer Services, PO Box 1115, Richmond, VA 23218-1115. Form VA-1, Request for Copy of Tax Return. Who can ask: The taxpayer, a court-appointed representative, an owner or officer of a company, or an individual given power of attorney by the taxpayer. Copies of previously filed returns, 5 years back, for individual income, corporation income, pass-through entity, sales and employer withholding taxes. A transcript is a record of account transactions, such as payments or adjustments. Fee: $5 for each return copy (refunded if the return cannot be provided); no charge for a transcript. Turnaround: Up to 30 days for a return copy. Online for representatives: Online Services shows 3 years of filing history for the business taxes on the new platform; copies of returns and transcripts are requested by mail. request source Public record

Online access for professionals

Virginia Tax Online Services (new platform), tax preparer and authorized third party accounts; Business Online Services (iFile) for taxes not yet moved. Sales, withholding, vending machine dealer's tax, digital media fees and tire recycling fees are now filed and paid on the new platform, with 3 years of account filing history and copies of letters for full access users. Corporate income, pass-through entity and individual income taxes move in later rollouts. A tax preparer or authorized third party registers an online account; a preparer with an existing iFile preparer account transitions it using the Tax Preparer Unique ID, User ID and password. How a client grants a preparer access to a specific account on the new platform was not found. source Public record

Practitioner line

No dedicated practitioner line found. Power of attorney help: individuals 804.367.8031, businesses 804.367.8037. source Public record

Recent and coming changes

• Sales, withholding, vending machine dealer's tax, digital media and tire recycling fees moved to the new Online Services platform; existing tax preparer accounts transition with current credentials. iFile stops taking these returns after the quarterly sales returns due October 20, quarterly withholding due November 2, monthly sales due November 20 and monthly withholding due November 25, 2026. source Public record
• Corporate income, pass-through entity and individual income taxes are to move to the new platform in later rollouts. source Public record

No Virginia paid preparer registration law or program was found in the Virginia Tax pages read; registration.required is false on that basis. The modernize page read here gives the November 2026 iFile cutoffs but not the date the new platform opened; data/states/virginia.json gives September 8, 2026.

Not confirmed: How a client grants a tax preparer access to a specific business account on the new Online Services platform: the help videos were not readable as text. Whether PAR 101 expires: not stated on the page read. Penalty for a preparer that does not e-file when required, or omits the PTIN: not stated in the pages read.

Rules for tax professionals in every state

Federal tax data sharing

16 IRS data-sharing agreements with agencies in Virginia, for any purpose (TIGTA, as of March 2026) source Public record; FUTA credit certified to the IRS by Virginia Employment Commission source Public record; the workforce agency signed the IRS Questionable Employment Tax Practices (QETP) agreement in 2007 source Public record. How the IRS shares tax data with the states

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