Taxes in Arlington
Virginia's state income tax is graduated, not flat: 2% on the first $3,000 of taxable income, 3% on $3,001-$5,000, 5% on $5,001-$17,000, and 5.75% on everything above $17,000 -- meaning most working Arlington households effectively pay close to the flat 5.75% top rate on the bulk of their income, since that top bracket begins at just $17,000, alongside a combined 6.0% Arlington sales tax and no state estate or inheritance tax.
Exploring the idea of moving?
We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.
Learn moreVirginia's Graduated Income Tax: Near-Flat 5.75% in Practice for Most Earners
Virginia taxes income at 2% on the first $3,000, 3% on the next $2,000 ($3,001-$5,000), 5% on the next $12,000 ($5,001-$17,000), and 5.75% on all taxable income above $17,000, per the Tax Foundation and multiple 2026 tax-rate aggregators reviewed this session -- brackets that have remained unchanged for decades and apply identically regardless of filing status. Because the top 5.75% bracket starts at just $17,000 of taxable income, most working households in a high-income market like Arlington (median household income $142,100-$142,114, per the base record) pay effectively close to a flat 5.75% marginal rate on the great majority of their income, even though the underlying structure is technically graduated rather than flat.
A Real, Disclosed, Unresolved Wrinkle: A Possible New 7% Top Bracket
Some 2026 aggregator coverage describes a new 7% Virginia tax bracket on taxable income above $600,000, tied to a bill (HB1754, from a 2025 Delegate Watts proposal) described in different sources as either already "beginning in taxable year 2026" or still a 2025-introduced legislative proposal -- this session's search results genuinely disagreed on its enacted status, and it was NOT independently confirmed against Virginia's own Department of Taxation guidance. This is disclosed here as a real, unresolved item rather than stated as settled law; a household with Virginia taxable income above $600,000 should confirm the current, actually-enacted top bracket directly with Virginia Tax before assuming either the standard 5.75% top rate or a new 7% rate applies.
Social Security Is Fully Exempt; a Separate Age Deduction Applies to Other Retirement Income
Virginia does not tax Social Security income at all, regardless of age or income level. Separately, filers 65 or older may claim an age deduction of up to $12,000 against other income, phased out $1 for every $1 that federal adjusted gross income (reduced by taxable Social Security) exceeds $50,000 (single) or $75,000 (married filing jointly), fully eliminated at $62,000 (single) / $99,000 (married). A separate, smaller $800 additional personal exemption is also available for filers 65+ -- a different, smaller provision from the $12,000 age deduction, not the same benefit under two names. See the retiring topic page for the fuller picture on how this applies to pension and other retirement income specifically.
Standard Deduction: A Real, Recent Increase
Virginia's standard deduction increased to $12,000 for single filers and $24,000 for married filers beginning in tax year 2025, with that amount indexed for inflation annually starting in tax year 2026, per multiple 2026 sources -- a real, recent increase from Virginia's prior standard deduction levels, applicable to every Virginia filer regardless of age.
Arlington's Combined Sales Tax and No Estate/Inheritance Tax
As detailed in the base record, Arlington's combined 2026 sales tax rate is 6.0%: Virginia's 4.3% state rate, plus Arlington County's 1.0% local-option rate, plus a 0.7% Northern Virginia Transportation Authority (NVTA) regional rate that applies across Northern Virginia specifically. Groceries receive a reduced sales-tax rate rather than the full combined rate, though sources genuinely disagreed on the exact reduced figure this pass (1% cited by one source, 2.5% by another) -- disclosed rather than resolved to one number; confirm the current grocery rate directly with Virginia Tax. Separately, Virginia has no state estate tax or inheritance tax (the state estate tax was repealed effective July 1, 2007), though sufficiently large estates may still owe the federal estate tax, whose exemption stands at $15 million for 2026.
Key takeaways
- Virginia's income tax is graduated (2% / 3% / 5% / 5.75%), but because the top 5.75% bracket starts at just $17,000, most working Arlington households -- with a median household income of $142,100+ -- pay effectively close to a flat 5.75% marginal rate on most of their income.
- A possible new 7% top bracket above $600,000 of taxable income (HB1754) was found in some 2026 coverage but its enacted status was genuinely unclear and not independently confirmed this pass -- disclosed as an unresolved item, not stated as settled law.
- Social Security is fully tax-exempt in Virginia; a separate age deduction (up to $12,000, phased out above $50K/$75K federal AGI, eliminated at $62K/$99K) applies to other retirement income, distinct from a smaller $800 additional personal exemption for 65+.
- Virginia's standard deduction rose to $12,000 (single) / $24,000 (married) starting tax year 2025, indexed for inflation from 2026 -- a real, recent increase applicable to every filer.
- Arlington's combined sales tax is 6.0% (4.3% state + 1.0% county + 0.7% NVTA regional); groceries get a reduced rate (sources disagreed on the exact figure: 1% vs. 2.5%); Virginia has no estate or inheritance tax (repealed 2007), though the federal estate tax can still apply above its $15 million 2026 exemption.
Want to know what your budget actually buys here?
Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.
Get local guidanceRead the full Arlington overview for the complete picture -- housing, taxes, climate, and who this place genuinely fits.
Planning a move?
Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.
Talk to a local expert