Welcome to state taxes Guide
State With Lowest Taxes Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
A Summary of Virginia State Taxes
from:Virginia State taxes rates range from 2 percent to 5.75 percent. They are assessed over four income tax brackets:
1) Personal income tax
Virginia's income tax rates are assessed over the following brackets:
- 2% on the first $3,000 of taxable income
- 3% on taxable income between $3,001 and $5,000
- 5% on taxable income between $5,001 and $17,000
- 5.75% on taxable income of $17,001 and above.
For married people who are filing joint returns, the rates are still the same but the income brackets are doubled. Virginia residents should file Form 760 (Resident Income Tax Return) by May 1. These forms can be downloaded from the Virginia Department of Taxation website.
2) Sales tax
Virginia State taxes 4 percent for sales. There is an additional 1 percent combined sales tax on most purchases within the state. Tax rate on food has decreased to 2.5 percent on July 1, 2005, and this resulted in a combined tax rate of 3.5 percent (2.5 percent state tax and 1 percent local tax). Residents usually become subject to the use tax when they purchase in a tax year more than $100 worth of items which they did not pay sales tax for. Examples of these types of transactions are purchases done from the Internet, mail-order catalogues and TV shopping channels. These Virginia State taxes are also applicable to tax-free purchases made outside Virginia, such as buying an item from an outlet in another state and having it shipped to Virginia.
3) Personal and real property taxes
Virginia has no property tax. The tax is set and collected at the local government level. Real estate is taxed at the local level based on 100 percent of fair market value. Tax rates on real estate vary and are set by locality. Taxes on local personal property are based on percentages from the original cost. Machinery, furniture, fixtures, trucks and automobiles are considered tangible personal properties. Residents must file Form 762 by May 1.
4) Inheritance and estate taxes
Inheritance taxes are not collected in Virginia. Virginia's estate tax was already separated from the federal estate tax laws.
Other facts about Virginia state taxes:
Taxpayers can electronically request for an extension file so they can monitor their contributions to Virginia state taxes. They can also check the status of their refunds on line. At VATAX Online, information on other electronic tax options can be found. The Virginia Department of Taxation publishes the names of businesses with unresolved tax liabilities online after giving them the chance to settle their tax debts.
State With Lowest Taxes News
State might cut taxes, but borrow more
TRENTON — New Jersey will be able to pay for an income-tax cut in the upcoming year through a series of budget moves that include borrowing $260 million more for transportation projects, the state treasurer said Wednesday.
Read more...Analysis: Property taxes give NY Westchester edge over peers
NEW YORK (Reuters) - Westchester County has the lowest median household income of the four wealthy New York counties near New York City, but it alone has bragging rights to something that would be the envy of any municipality in these times of fiscal trouble: a top AAA credit rating. One secret lies in Westchester's higher and steadier stream of property taxes, analysts say. Rockland County ...
Read more...Property taxes dwarf state's major taxes; combined state-federal spending hits record $49 billion
For the past three months, Republican Governor Chris Christie and Democratic legislative leaders have been trading charges over their rival plans to cut income and property taxes, over the governor’s
Read more...NJ Assembly passes bill to raise minimum wage to $8.50
TRENTON — The Assembly on Thursday approved a bill that would increase the state’s minimum hourly wage to $8.50 on July 1. If passed by the Senate, the measure would go to Gov. Christie, who has not said whether he would sign it.The 46-33 vote came down largely along party lines, with only one Democrat, Assemblyman Matthew Milam (Cumberland), voting against it. Democrats control both chambers in ...
Read more...WITH VIDEO:Algonac discusses low tax rates, high healthcare costs
Algonac still has the lowest taxes in the county, according to a recent report.
Read more...