Taxes in Virginia Beach
Virginia levies a graduated state income tax topping out at 5.75% (2% on the first $3,000, 3% to $5,000, 5% to $17,000, 5.75% above) -- effectively near-flat 5.75% for most earners -- alongside Virginia Beach's genuinely low 6.0% combined sales tax rate (4.3% state + 1% local + 0.7% Hampton Roads regional) and a reduced 1% local-only tax rate on groceries following the state's 2023 elimination of the state-level grocery tax.
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Learn moreVirginia's Graduated Income Tax: Near-Flat 5.75% in Practice
Virginia's 2026 income tax runs four brackets: 2% on the first $3,000 of taxable income, 3% on income from $3,001 to $5,000, 5% on income from $5,001 to $17,000, and 5.75% on all income above $17,000. Because that top bracket starts at a relatively low $17,000 threshold, the effective rate for most working adults runs close to the full 5.75% -- these brackets have remained unchanged for decades. The 2026 standard deduction is $8,750 for single filers and $17,500 for joint filers.
Social Security Is Fully Exempt; Other Retirement Income Gets a Real, Capped Deduction
Virginia does not tax Social Security benefits at all. Separately, Virginia offers an age deduction of up to $12,000 for taxpayers 65 and older, applicable to any retirement income (pension, 401(k), or IRA distributions) -- but it phases out by $1 for every $1 that federal adjusted gross income exceeds $50,000 (single) or $75,000 (married filing jointly), fully eliminated at $62,000 for single filers. See the retiring topic page for the fuller picture.
Virginia Beach's Combined Sales Tax: A Genuinely Low 6.0%
Virginia Beach's minimum combined 2026 sales tax rate is 6.0%: Virginia's 4.3% state rate, plus a 1% local rate, plus a 0.7% Hampton Roads regional transportation tax. This is a comparatively low combined rate versus several other metros covered in this project -- for comparison, Denver's combined rate runs 9.15% and Colorado's statewide average runs roughly 7.89%.
Groceries Are Taxed at a Reduced 1% Rate, Not Fully Exempt
Virginia eliminated the state-level portion of its grocery tax effective January 1, 2023, but a 1% local tax on food for home consumption and certain essential personal hygiene products remains in effect statewide, including in Virginia Beach -- a real, meaningful reduction from the standard 6.0% combined rate, though not a full exemption the way some other states handle groceries.
No State Estate or Inheritance Tax
Virginia repealed its state estate tax for deaths occurring on or after July 1, 2007, and has no state inheritance tax. Virginia residents with sufficiently large estates may still owe the federal estate tax -- for deaths in 2026, the federal basic exclusion is $15 million per person ($30 million per married couple with portability) -- though most Virginia Beach households will never approach that threshold.
Key takeaways
- Virginia's graduated income tax (2%/3%/5%/5.75% across four brackets) is effectively near-flat 5.75% for most earners, since the top bracket starts at just $17,000 of taxable income. 2026 standard deduction: $8,750 single / $17,500 joint.
- Social Security is fully exempt from Virginia state tax; a separate age-65+ deduction of up to $12,000 applies to other retirement income but phases out above $50,000 (single) / $75,000 (joint) federal AGI.
- Virginia Beach's combined sales tax rate is a genuinely low 6.0% (4.3% state + 1% local + 0.7% Hampton Roads regional) -- lower than several other metros covered in this project.
- Groceries are taxed at a reduced 1% local-only rate (the state portion was eliminated January 2023) -- a real reduction, though not a full exemption.
- Virginia has no state estate or inheritance tax (repealed 2007); the federal estate tax ($15M per-person exclusion for 2026) rarely applies to typical Virginia Beach households.
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