Flat-Fee Tax Preparation for Virginia Residents

Virginia has a graduated income tax with rates from 2% to 5.75% — the top rate applies to income over $17,000, meaning most VA residents pay the top rate on a significant portion of their income

The VA Pass-Through Entity Tax election allows eligible S-corps and partnerships to pay VA income tax at the entity level for SALT cap planning

Virginia does not tax Social Security benefits and provides a substantial age deduction for taxpayers age 65+ up to $12,000 per person

VA's recordation tax (deed of conveyance) is $0.25 per $100 of value plus a state grantor tax of $0.50 per $500 — combined with local recordation taxes, total transfer taxes in NoVA can exceed 0.5%

Northern Virginia residents working in DC face a DC/VA/MD reciprocity arrangement — VA residents who work in DC or MD pay VA income tax (not DC or MD tax), simplifying compliance

Virginia does not impose a state estate tax or inheritance tax — a favorable aspect for estate planning

VA conforms to federal depreciation rules including bonus depreciation, benefiting capital-asset-heavy businesses and real estate investors

Virginia has significant military and federal government workforce — military pay and federal retirement income have specific VA treatment that frequently leads to planning opportunities

Virginia Real Estate Tax

Virginia's real estate market is active in Northern Virginia (NoVA), Richmond, and Hampton Roads. NoVA's proximity to DC drives significant demand and appreciation. VA's no estate tax, federal depreciation conformity, and PTET election create a favorable environment for real estate investors. The DC/VA/MD reciprocity arrangement simplifies tax filing for many NoVA commuters.

Virginia Business Tax

Virginia businesses benefit from the PTET election, no estate tax, and federal depreciation conformity. The top income tax rate kicks in at a very low threshold ($17,000), but the 5.75% rate is moderate by national standards. Northern Virginia's tech and federal contractor ecosystem creates specialized business formation, stock compensation, and multi-state planning needs.

Do I need to file a Virginia state tax return?

If you are a Virginia resident or earned VA-source income above the filing threshold, you must file a VA Form 760. Virginia taxes residents on worldwide income at rates up to 5.75%. If you live in Virginia but work in DC or Maryland, you file only the VA return (the DC/VA/MD reciprocity agreement means you pay only your state of residence).

How does the DC/MD/VA reciprocity agreement work?

Virginia, Maryland, and DC have a reciprocity agreement for income tax. If you are a VA resident and work in DC or MD, you pay income tax only to Virginia — not to DC or MD — on your wages. Your employer should withhold VA income tax, not DC or MD tax. If DC or MD tax was withheld in error, you file non-resident returns in those jurisdictions to claim a refund. The reciprocity covers wages only — other income types (rental income, business income) from DC or MD sources are still taxable there.

Does Virginia tax Social Security or military retirement income?

Virginia does not tax Social Security benefits. Virginia also provides favorable treatment for military retirement income — active duty military pay for non-VA residents is not subject to VA tax, and VA residents with military retirement pay may qualify for a deduction. The age deduction ($12,000 per person age 65+) further reduces VA taxable income for qualifying retirees.

What is the Virginia PTET election?

Virginia's Pass-Through Entity Tax allows eligible S-corps and partnerships to elect to pay VA income tax at the entity level. The payment is deductible on the federal return, bypassing the $10,000 SALT cap. Partners and shareholders receive a credit against their individual VA returns. For VA business owners subject to the SALT cap, the PTET election is typically valuable and should be evaluated annually.