Taxes & Insurance in Smithfield

Smithfield applies Virginia's near-flat state income tax, a higher combined sales tax rate than Hampton Roads-proper markets in this dataset, and a real two-layer town-plus-county property tax structure -- alongside the same coastal homeowners-insurance exposure tier documented elsewhere in this Virginia batch.

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Virginia's graduated income tax, functionally near-flat for most earners

Virginia taxes income at 2% on the first $3,000, 3% on $3,001-$5,000, 5% on $5,001-$17,000, and 5.75% above $17,000. A new 7% bracket applies to Virginia taxable income above $600,000 starting tax year 2026 -- worth understanding given Smithfield's genuinely high $113,158 median household income (Tax Foundation, retrieved 2026-08-24).

A combined sales tax rate above Hampton Roads-proper markets

Smithfield's combined sales tax rate is 7.0% (4.3% state + 1% Isle of Wight County + 0.7% special district) -- above the 6.0% rate documented for Norfolk, Virginia Beach, and Portsmouth elsewhere in this dataset, since Smithfield sits in a different county tax jurisdiction (SalesTaxGuide.org, retrieved 2026-08-24).

A real, two-layer property tax system

The Town of Smithfield's own real estate rate ($0.16/$100 of assessed value) applies IN ADDITION to Isle of Wight County's separate $0.81/$100 rate -- both apply to a property within town limits. The county's effective rate (0.73%) runs below the 1.02% national median (Isle of Wight County official Real Estate Tax page, retrieved 2026-08-24).

The same statewide retiree tax benefits documented elsewhere in this Virginia batch

Virginia's statewide age deduction (up to $12,000 for qualifying 65+ filers, phased out above $50K single/$75K joint federal AGI) and the newly uncapped (2026) military retirement pay subtraction both apply here -- directly relevant given Smithfield's real, disclosed aging-population trend documented in the retiring topic below.

Key takeaways

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Last reviewed: 2026-08-24. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.