Taxes in Ashburn
Virginia's state income tax is graduated, not flat -- 2% on the first $3,000, 3% on $3,001-$5,000, 5% on $5,001-$17,000, and 5.75% above $17,000, the identical statewide structure already detailed in this project's Arlington, VA sibling record -- alongside a combined 6.0% Ashburn/Loudoun sales tax and no state estate or inheritance tax.
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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 -- unchanged brackets applying identically statewide regardless of locality or filing status. Because the top 5.75% bracket starts at just $17,000, most working households in a high-income market like Ashburn/Loudoun -- with Ashburn's own $154,978 median household income and Loudoun County's nation-leading $178,707-$181,765 county-wide median -- pay effectively close to a flat 5.75% marginal rate on the great majority of their income.
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. Filers 65 or older may separately claim an age deduction of up to $12,000 against other income, phased out $1 for every $1 that federal adjusted gross income exceeds $50,000 (single) or $75,000 (married filing jointly), fully eliminated at $62,000 (single) / $99,000 (married) -- identical statewide structure to what's disclosed in this project's Arlington, VA sibling record. See the retiring topic page for the fuller picture on how this interacts with Ashburn/Loudoun's genuinely high income profile.
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, indexed for inflation annually starting in tax year 2026 -- a real, recent increase applicable to every Virginia filer regardless of locality.
Ashburn's Combined Sales Tax: Identical Structure to Arlington's
Ashburn/Loudoun County's combined 2026 sales tax rate is 6.0%: Virginia's 4.3% state rate, plus a mandatory 1.0% local-option rate levied statewide, plus a 0.7% Northern Virginia Transportation Authority (NVTA) regional rate -- Loudoun sits within the NVTA region, giving it the identical combined structure and rate already disclosed for Arlington, VA in this project's sibling record. 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.
A Real, Locally Favorable Property-Tax Contrast Worth Naming Alongside the Income-Tax Picture
While Virginia's income tax runs identically statewide, Loudoun County's real estate tax rate ($0.805 per $100 of assessed value for tax year 2026) runs meaningfully lower than Arlington County's ($1.053) in this project's sibling record -- a direct, quantified result of the data-center industry's outsized share of Loudoun's tax base, detailed fully on the property-taxes topic page. This is a real, Ashburn/Loudoun-specific local-tax advantage layered onto the same statewide income-tax structure every other Virginia locality shares.
Key takeaways
- Virginia's income tax is graduated (2%/3%/5%/5.75%), but because the top bracket starts at just $17,000, most working Ashburn/Loudoun households -- given the area's nation-leading income profile -- pay effectively close to a flat 5.75% marginal rate on most of their income.
- 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.
- Virginia's standard deduction rose to $12,000 (single) / $24,000 (married) starting tax year 2025, indexed for inflation from 2026.
- Ashburn/Loudoun's combined sales tax is 6.0% (4.3% state + 1.0% local + 0.7% NVTA regional) -- identical structure to Arlington's in this project; Virginia has no estate or inheritance tax (repealed 2007).
- Loudoun's real estate tax rate ($0.805/$100) runs meaningfully lower than Arlington's ($1.053) -- a direct, quantified local advantage tied to the data-center tax base, layered onto the identical statewide income-tax structure.
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