Virginia Salary Calculator

Virginia Income Tax Overview (2026)

Virginia has a graduated income tax from 2% to 5.75%. The 5.75% rate applies to all income above $17,000 for single filers — meaning most workers pay the top rate on the majority of their income.

In addition to state tax, all Virginia workers pay federal income tax (10%–37% marginal rates) and FICA — Social Security (6.2%) and Medicare (1.45%), totaling 7.65% of gross wages. Voluntary deductions like 401(k) contributions or health insurance premiums further reduce taxable income.

Cost of Living in Virginia

Northern Virginia (DC suburbs) is very expensive with median home prices over $600,000. Richmond is more affordable at $320,000. Virginia Beach and Roanoke are mid-range. The state benefits from strong federal employment.

When evaluating a job offer in Virginia, consider not just the salary but total compensation — employer benefits, retirement match, and location-specific costs. A $70,000 salary in a low cost-of-living Virginia city may be more livable than $85,000 in a high-cost metro.

Top Industries and Employers in Virginia

Virginia's economy is anchored by federal government and defense contractors, technology (Amazon HQ2, Booz Allen), healthcare, agriculture. The state median household income is approximately $75,000 per year, though this varies significantly by region and occupation.

Virginia's minimum wage of $12.41/hour sits above the federal floor, giving entry-level workers a higher starting point than in federal-minimum states, and the state's $75,000 median household income runs well above the national figure, largely on the strength of federal government and defense contractors.

How Virginia Compares to Other States

Virginia's 5.75% top rate means a worker earning $75,000 pays approximately $4,312 in state income tax annually. Compared to zero-tax states, this reduces take-home by $4,312/year — a meaningful difference that compounds significantly over a career.

For workers evaluating a potential relocation, state income tax is just one factor. Property taxes, sales taxes, cost of living, job market depth, and quality of public services all contribute to the complete financial picture. Use our Salary Calculator to compare take-home pay across all 50 states side by side.

How to Calculate Your Virginia Take-Home Pay

Your net pay is your gross salary minus: (1) federal income tax based on your bracket and filing status, (2) FICA at 7.65% of gross wages, (3) Virginia state income tax at 5.75%, and (4) any voluntary deductions such as 401(k), HSA, or health insurance premiums. The calculator above handles steps 1–3 automatically.

Tax-Advantaged Strategies for Virginia Workers

Regardless of your state tax rate, contributing to pre-tax retirement accounts like a 401(k) or traditional IRA reduces your federal taxable income dollar for dollar. In 2026, you can contribute up to $24,500 to a 401(k) and $7,500 to an IRA. For someone earning $60,000 in Virginia, maxing the 401(k) reduces federal taxable income by $24,500 — saving approximately $2,940 in federal tax (at 12% marginal rate) plus approximately $1,409 in Virginia state tax.