Filed under Costs · 4 min read
The first Virginia tax return after a move is the one that confuses people, because it usually covers only part of the year. This guide walks through how Virginia decides whether you are a resident, how the tax is calculated and what changes at the cash register. It is based on the Virginia Department of Taxation’s guidance and the Code of Virginia, and it is general information rather than tax advice.
Are you a resident, part-year resident or nonresident?
Virginia Tax uses three categories:
- Resident. You live in Virginia, or keep a place of abode here, for more than 183 days during the year, or Virginia is your legal (domiciliary) home. Residents file Form 760 and report income from all sources.
- Part-year resident. You moved into Virginia during the year intending to become a resident, or moved out to become a resident elsewhere. Part-year residents generally file Form 760PY.
- Nonresident. You are neither of the above but have income from Virginia sources. Nonresidents file Form 763.
The 183 days do not need to be consecutive. Virginia Tax adds that intent is the main factor for part-year status: the question is when you established Virginia as your legal residence. For most people moving to Richmond for a job or a new home, the year of the move is a 760PY year and the following year is a full 760 year.
Income taxed by two states
As a resident, you report all your income, including income earned in other states. Virginia does not let you subtract income reported to another state; instead, taxes paid to other states are handled through a credit. There is no credit for taxes paid to local governments or the federal government.
The rate schedule
Under section 58.1-320 of the Code of Virginia, the tax on Virginia taxable income is:
| Taxable income | Rate |
|---|---|
| First $3,000 | 2% |
| $3,001 to $5,000 | 3% |
| $5,001 to $17,000 | 5% |
| Over $17,000 | 5.75% |
The brackets have not changed since 1990, so they are narrow by modern standards. As an illustration, on $50,000 of taxable income the tax is $60 + $60 + $600 + $1,897.50, or $2,617.50. That is a little over 5.2 percent overall.
Deductions that reduce taxable income
Taxable income is what is left after Virginia’s deductions and exemptions. The main ones under section 58.1-322.03:
| Item | Single | Married |
|---|---|---|
| Standard deduction, tax years 2025 and 2026 | $8,750 | $17,500 |
| Standard deduction, tax year 2027 | $9,200 | $18,400 |
| Standard deduction, tax years 2028 and 2029 | $9,300 | $18,600 |
| Personal exemption | $930 each | $930 each |
| Extra exemption if aged 65+ or blind | $800 each | $800 each |
If you itemize on your federal return, you itemize on Virginia’s too, minus state and local income taxes. Taxpayers 65 and older may also qualify for an age deduction of up to $12,000, reduced dollar for dollar once adjusted income exceeds $50,000 for a single filer or $75,000 for a married couple. Contributions to a Commonwealth Savers college savings account are deductible up to $4,000 per account per year, with no cap for contributors 70 and older.
Estimated payments
If you will owe more than $1,000 after withholding and credits, Virginia expects quarterly estimated payments or more withholding. The due dates are May 1, June 15, September 15 and January 15 of the following year. If you file your return and pay in full by March 1, you can skip the January payment. Freelancers and people starting a business after a move should set this up early.
Sales tax in Richmond
In the City of Richmond, the general sales tax is 6 percent, made up of 4.3 percent for the Commonwealth, 0.7 percent for state transportation and 1 percent for the city. Groceries and certain essential personal hygiene items are taxed at a reduced 1 percent. Other localities can have different rates; Virginia Tax publishes a lookup by locality.
Each August Virginia holds a three-day sales tax holiday. In 2026 it ran from August 7 to 9, starting the first Friday in August at 12:01 a.m. and ending Sunday at 11:59 p.m. Qualifying school supplies, clothing, footwear, hurricane and emergency preparedness items, and Energy Star and WaterSense products can be bought without sales tax.
The holiday has price limits per item: school supplies at $20 or less, clothing and footwear at $100 or less, portable generators at $1,000 or less, gas-powered chainsaws at $350 or less, and qualifying Energy Star or WaterSense products at $2,500 or less, bought for home or personal use.
Tip: Keep your move date documented: a lease start, closing date or utility start date. Virginia Tax treats intent as the key to part-year status, and the same evidence also matters if you later claim in-state tuition, as explained in Qualifying for In-State Tuition in Virginia After a Move: The One-Year Domicile Rule.
Local taxes on homes and cars are separate from state income tax; see Richmond Real Estate and Car Taxes: Rates, Due Dates, Appeals and the Shrinking Car Tax Relief.