State And Local Taxes Article

. For a permanent link to this article, or to bookmark it for further reading, click here.

Virginia State Taxes - A Summary

from: www.TaxesExposed.com


Virginia State taxes rates range from 2 percent to 5.75 percent. They are assessed into four income tax brackets:

1) Personal income tax

Virginia's income tax rates are assessed over the following brackets:
- 2% on the first $3,000 of taxable income
- 3% on taxable income between $3,001 and $5,000
- 5% on taxable income between $5,001 and $17,000
- 5.75% on taxable income of $17,001 and above.

For married people who are filing joint returns, the rates are still the same but the income brackets are doubled. Virginia residents should file Form 760 (Resident Income Tax Return) by May 1. These forms can be downloaded from the Virginia Department of Taxation website.

2) Sales tax
Virginia State taxes 4 percent for sales. There is an additional 1 percent combined sales tax on most purchases within the state. Tax rate on food has decreased to 2.5 percent on July 1, 2005, and this resulted in a combined tax rate of 3.5 percent (2.5 percent state tax and 1 percent local tax). Residents usually become subject to the use tax when they purchase in a tax year more than $100 worth of items which they did not pay sales tax for. Examples of these types of transactions are purchases done from the Internet, mail-order catalogues and TV shopping channels. These Virginia State taxes are also applicable to tax-free purchases made outside Virginia, such as buying an item from an outlet in another state and having it shipped to Virginia.

3) Personal and real property taxes
Virginia has no property tax. The tax is set and collected at the local government level. Real estate is taxed at the local level based on 100 percent of fair market value. Tax rates on real estate vary and are set by locality. Taxes on local personal property are based on percentages from the original cost. Machinery, furniture, fixtures, trucks and automobiles are considered tangible personal properties. Residents must file Form 762 by May 1.

4) Inheritance and estate taxes
Inheritance taxes are not collected in Virginia. Virginia's estate tax was already separated from the federal estate tax laws.

Other facts about Virginia state taxes:

Taxpayers can electronically request for an extension file so they can monitor their contributions to Virginia state taxes. They can also check the status of their refunds on line. At VATAX Online, information on other electronic tax options can be found. The Virginia Department of Taxation publishes the names of businesses with unresolved tax liabilities online after giving them the chance to settle their tax debts.

Christine Gray is a recognized authority on the subject of Online Taxes. Her website Taxes Exposed provides a wealth of information on everything you will need to know about State Taxes. All rights reserved. Articles may be reprinted as long as the content and links remains intact and unchanged.

 

State And Local Taxes News

No relevant info was found on this topic.