Virginia Small Business Tax Guide — 2026
Income Tax Rate
2% — 5.75% (progressive, 4 brackets)
Sales Tax Rate
5.3% state + local (total typically 5.3% — 7%)
Filing Deadline
May 1 (later than federal deadline)
Virginia Income Tax
Virginia imposes a state income tax with rates of 2% — 5.75% (progressive, 4 brackets). Self-employed individuals, freelancers, and sole proprietors pay this tax on their net business income in addition to federal income tax and federal self-employment tax (15.3%).
Self-Employment in Virginia
Virginia taxes self-employment income at progressive rates up to 5.75%. No separate state SE tax. Virginia starts with federal AGI.
Estimated Tax Requirements
Quarterly estimated payments required if you expect to owe $150 or more. Due dates: May 1, June 15, September 15, January 15.
Virginia Deductions & Credits
- Virginia standard deduction: $8,000 (single) / $16,000 (married filing jointly)
- Virginia does not conform to the QBI deduction
- Age 65+ deduction and disability deductions
- Credit for taxes paid to other states
Business Filing Fees
LLC: $100 formation + $50 annual registration. Corporation: $75 formation + $100 annual registration.
Key Facts About Virginia Taxes
- Virginia's filing deadline is May 1 — later than the federal deadline
- Virginia has unique estimated tax due dates (first payment May 1, not April 15)
- Virginia does not conform to the QBI deduction
- Northern Virginia, Hampton Roads, and Richmond are major freelancer hubs
- Very low $150 estimated payment threshold
The Part Virginia Does Not Do For You
Whatever Virginia takes, it takes on your net profit — and net profit is just what you earned minus what you can prove you spent. The proving is on you, and it is where most of the money leaks out.
TaxTidy is where the proof lives. Photograph a receipt and it reads the vendor, the amount and the date in about three seconds, then files the expense on its Schedule C line. Nothing gets typed in twice, and nothing depends on you remembering a purchase from eight months ago.
Because Virginia wants its own return alongside the federal one, the same organized record does double duty — one set of receipts, sorted once, ready for whichever deadline comes first. Your Audit Readiness Score shows you how solid that record is before anyone else asks.
Frequently Asked Questions
When is the Virginia tax filing deadline?
May 1 — about two weeks after the federal April 15 deadline. Virginia's first estimated payment is also due May 1.
What is Virginia's income tax rate?
Virginia uses four progressive brackets: 2%, 3%, 5%, and 5.75%. The top rate applies to income over $17,000.
Does Virginia allow the QBI deduction?
No. Virginia does not conform to the federal Section 199A QBI deduction.
Official source: Virginia Department of Revenue
TaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.
Start Tracking Your Virginia Business Expenses
Your first 25 scans are on us — free for life, no card required. Enough to sort this quarter's receipts by Schedule C line and see your Audit Readiness Score for the first time.
Get Started Free