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Virginia State Taxes – 5 Must Know Tax Facts For Virginia Residents
The taxes that the state of Virginia imposes on its citizens range form 2 % to 5.75%. The taxes are levied over 4 brackets of income tax.
1. Personal income tax:
The four brackets over which taxes are levied are listed below:-
- 2% for taxable income up to $3.000
- 3% for taxable income greater than $3.000 and lesser than $5,000
- 5% for taxable income greater than $5,000 but lesser than $17,000 and
- 5.75% for taxable income greater than 17,000$.
For a married couple filing joint returns, rate remains the same while the brackets of income are doubled. The residents of the state of Virginia should compulsorily file Form 760 (returns on resident income tax) by the first of may each year. The forms are available on the website of Virginia taxation department.
2. Sales tax:
The taxes levied on sales are about 4%. Another 1% additional combined sales tax is levied on most items purchased within the state. The sales tax on food has dropped to 2.5% and along with combined sales tax (which is about 1%) it comes to around 3.5%. The residents are subjected to use tax if they purchase items of worth greater than $100 for which they did not pay sales tax for. Some examples for this type of tax are, purchases made on the internet or mail order catalogues or T.V shopping channels. The taxes are also applicable on tax free purchases that are made outside the state of Virginia and then shipped into the state.
3. Real property and personal taxes:
The state of Virginia does not levy any property taxes. This tax is collected by the respective local government. Any piece of real estate is taxed based on 100% of the fair market price. These taxes usually show some variations across the state as they are set by the local government. Taxes are based on the original cost. Furniture, fixtures, automobiles, trucks and machinery are taken into account as tangible personal properties. Form 762 must be filed latest by the first of may.
4. Estate and inheritance taxes:
There is no collection of inheritance taxes in the state of Virginia. The state’s estate tax laws have been separated from the existing estate tax laws.
5. Other important facts on Virginia state taxes:
Taxpayers in the state of Virginia can request for an extension file, so as to monitor their contributions. Status of refunds can also be checked online. VATAX online provides information on electronic tax options. The department of taxation of the state of Virginia publishes the names of those businesses that have tax liability towards the state.