Virginia

Virginia has no estate or inheritance tax; estate tax effectively repealed as of July 1, 2007

“Today, Virginia no longer has an estate tax* or inheritance tax. Prior to July 1, 2007, Virginia had an estate tax that was equal to the federal credit for state death taxes. With the elimination of the federal credit, the Virginia estate tax was effectively repealed.”

Note: The asterisk flags a caveat, quoted verbatim: 'However, certain remainder interests are still subject to the inheritance tax.'

Virginia income tax: 2% to 5.75% graduated (same schedule all filing statuses; 5.75% above $17,000)

“A tax is hereby imposed upon the Virginia taxable income of every individual at the following rates: 2% on income not exceeding $3,000; 3% on income from $3,001 to $5,000; 5% on income from $5,001 to $17,000; and 5.75% on income exceeding $17,000.”

Note: Same schedule applies to all filing statuses, not doubled for MFJ. Standard deduction TY2025: see VA_STD_DEDUCTION_2025. Virginia local taxes are wage-only.

Virginia standard deduction TY2025: $17,500 MFJ (increased from $17,000 by 2025 General Assembly)

“Legislation enacted during the 2025 General Assembly session increased the standard deduction for Taxable Years 2025 and 2026 from $8,500 to $8,750 for single filers and from $17,000 to $17,500 for married filers filing jointly.”

Note: Verbatim from 2025 Form 760 Instructions (Va. Dept. of Taxation, Rev. 05/26), page 11. MFJ standard deduction: $17,500. Single standard deduction: $8,750.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

VA exempts VA-issued bonds; out-of-state muni bond interest is a VA income addition per §58.1-322.01(1)

“Income derived from obligations, or on the sale or exchange of obligations, of the Commonwealth or of any political subdivision thereof shall be subtracted.”

Note: §58.1-322.02(2) provides a subtraction for VA bond interest. §58.1-322.01(1) requires addition of out-of-state muni interest: 'Interest, less related expenses to the extent not deducted in determining federal income, on obligations of any state other than Virginia, or of a political subdivision of any such other state.'

VA exempts VA-issued bonds; out-of-state muni bond interest is a VA income addition per §58.1-322.01(1)

“Income derived from obligations, or on the sale or exchange of obligations, of the Commonwealth or of any political subdivision thereof shall be subtracted.”

Note: §58.1-322.02(2) provides a subtraction for VA bond interest. §58.1-322.01(1) requires addition of out-of-state muni interest: 'Interest, less related expenses to the extent not deducted in determining federal income, on obligations of any state other than Virginia, or of a political subdivision of any such other state.'

Virginia conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“The term 'Internal Revenue Code' means the laws enacted by the United States Congress with respect to federal income taxes, as such laws have been or may hereafter be amended, which are applicable to the taxable year.”

Note: Virginia's §58.1-321 conformity clause (quoted) incorporates §1400Z-2 QOZ provisions by default; no separate QOZ carve-out exists in the Virginia Code. Caveat: per Virginia Tax Bulletin 26-1 (2026 General Assembly), Virginia reportedly moved to FIXED-DATE conformity (IRC as of 12/31/2025) under §58.1-301(B) for TY2025; §1400Z-2 predates that date, so the conforms flag is unaffected either way. The rolling quote above may be superseded; pending primary-source confirmation of the new fixed-date section text.

Virginia conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity

“The term 'Internal Revenue Code' means the laws enacted by the United States Congress with respect to federal income taxes, as such laws have been or may hereafter be amended, which are applicable to the taxable year.”

Note: Virginia's §58.1-321 conformity clause (quoted) incorporates §1202 QSBS exclusion by default; no separate §1202 carve-out exists in the Virginia Code. Caveat: per Virginia Tax Bulletin 26-1 (2026 General Assembly), Virginia reportedly moved to FIXED-DATE conformity (IRC as of 12/31/2025) under §58.1-301(B) for TY2025; §1202 predates that date, so the conforms flag is unaffected. Pending primary-source confirmation of the new fixed-date section text.

Virginia subtraction for U.S. obligation income requires federal preemption; FNMA and FHLMC have no federal bondholder exemption; taxable per Tax Commissioner Ruling 94-281

“Income derived from obligations of the United States shall be subtracted to the extent included in federal adjusted gross income.”

Note: Tax Commissioner Ruling 94-281 (January 28, 1994) addressed FNMA/FHLMC specifically and confirmed their interest is not exempt from Virginia income tax: FNMA and FHLMC are federally chartered GSEs but their enabling statutes (12 U.S.C. §§1719(e), 1723a(c); 12 U.S.C. §1455(a)) do not grant bondholders an exemption from state income taxes. The §58.1-322.02(3) subtraction is limited to income 'derived from obligations of the United States'; GSE securities are not U.S. obligations.

Virginia income tax: 2% to 5.75% graduated (same schedule all filing statuses; 5.75% above $17,000)

“A tax is hereby imposed upon the Virginia taxable income of every individual at the following rates: 2% on income not exceeding $3,000; 3% on income from $3,001 to $5,000; 5% on income from $5,001 to $17,000; and 5.75% on income exceeding $17,000.”

Note: Same schedule applies to all filing statuses, not doubled for MFJ. Standard deduction TY2025: see VA_STD_DEDUCTION_2025. Virginia local taxes are wage-only.

U.S. Treasury interest exempt from Virginia income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Virginia income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Virginia income tax: 2% to 5.75% graduated (same schedule all filing statuses; 5.75% above $17,000)

“A tax is hereby imposed upon the Virginia taxable income of every individual at the following rates: 2% on income not exceeding $3,000; 3% on income from $3,001 to $5,000; 5% on income from $5,001 to $17,000; and 5.75% on income exceeding $17,000.”

Note: Same schedule applies to all filing statuses, not doubled for MFJ. Standard deduction TY2025: see VA_STD_DEDUCTION_2025. Virginia local taxes are wage-only.

Virginia income tax: 2% to 5.75% graduated (same schedule all filing statuses; 5.75% above $17,000)

“A tax is hereby imposed upon the Virginia taxable income of every individual at the following rates: 2% on income not exceeding $3,000; 3% on income from $3,001 to $5,000; 5% on income from $5,001 to $17,000; and 5.75% on income exceeding $17,000.”

Note: Same schedule applies to all filing statuses, not doubled for MFJ. Standard deduction TY2025: see VA_STD_DEDUCTION_2025. Virginia local taxes are wage-only.

Virginia adopted the Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)

“This article applies to the disposition at death of the following property acquired by a married person: 1. All personal property, wherever situated: a. Which was acquired as or became, and remained, community property under the laws of another jurisdiction.”

Note: Virginia's UDCPRDA (Va. Code §§64.2-315 to 64.2-320) protects the community property character of assets acquired in community property states when a couple moves to Virginia. At death, the surviving spouse retains their one-half community property interest. Does not make Virginia a community property state for income tax purposes. URL resolves to the Article 3 table of contents; §64.2-315 is within this article.

Virginia conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as follows: Two percent on income not exceeding $3,000; Three percent on income in excess of $3,000, but not in excess of $5,000; Five percent on income in excess of $5,000, but not in excess of $12,000.”

Note: Va. Code §58.1-320 imposes the tax on Virginia taxable income, which §58.1-322 builds from federal adjusted gross income, so the federal Section 1212 capital-loss carryover flows through. No published guidance addresses a carryforward imported from a pre-residency year; that application remains a structural inference.