VA
Virginia Small Business Tax Guide
Virginia income, corporate and sales taxes as the Code of Virginia states them, plus IRS points. An overview for learning, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Virginia before making filing or planning decisions.
Tax landscape for small businesses
For Virginia, this page relies on the Code of Virginia as published on the General Assembly's law portal. Only Code text is quoted here; for forms, filing and the full rate where you sell, go to Virginia Tax. IRS pages cover the federal side, with a date beside each quote.
For individuals, Code of Virginia § 58.1-320 (Virginia, checked October 31, 2026) sets four bands: "Two percent on income not exceeding $3,000"; "Three percent on income in excess of $3,000, but not in excess of $5,000"; "Five percent on income in excess of $5,000 but not in excess of $17,000 for taxable years beginning January 1, 1990"; and "Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 1990". For corporations, Code of Virginia § 58.1-400 (Virginia, checked October 31, 2026) says "A tax at the rate of six percent is hereby annually imposed on the Virginia taxable income for each taxable year of every corporation organized under the laws of the Commonwealth and every foreign corporation having income from Virginia sources."
On sales, Code of Virginia § 58.1-603 (Virginia, checked October 31, 2026) appears in two versions on the portal. The version headed "(Contingent expiration date)" sets a tax "in the amount of 4.3 percent", starting with "Of the gross sales price of each item or article of tangible personal property when sold at retail or distributed in this Commonwealth." Ask Virginia Tax or a tax professional for the total rate where you sell.
Worked example, with sample figures and the bands in Code of Virginia § 58.1-320 (Virginia, checked October 31, 2026): on $20,000 of Virginia taxable income, the four bands give $60.00 (2% of $3,000) + $60.00 (3% of $2,000) + $600.00 (5% of $12,000) + $172.50 (5.75% of $3,000) = $892.50, before any credit.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Individual income tax | "Two percent" to "Five and three-quarters percent" | Code of Virginia § 58.1-320 (Virginia, checked October 31, 2026). The top band is "Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 1990". |
| Corporate income tax | "six percent" | Code of Virginia § 58.1-400 (Virginia, checked October 31, 2026): "A tax at the rate of six percent is hereby annually imposed on the Virginia taxable income for each taxable year of every corporation organized under the laws of the Commonwealth and every foreign corporation having income from Virginia sources." |
| Sales tax, § 58.1-603 levy | "4.3 percent" | Code of Virginia § 58.1-603 (Virginia, checked October 31, 2026), version headed "(Contingent expiration date)". Ask Virginia Tax about the total rate where you sell. The portal doesn't say which version is in force now. |
| Federal self-employment tax | "15.3%" | The IRS self-employment tax page (In the US (federal), last reviewed or updated October 30, 2026): "The self-employment tax rate is 15.3%." |
Filing requirements
This list isn't a complete checklist for your business.
Virginia individual income tax
Code of Virginia § 58.1-320 (Virginia, checked October 31, 2026) says "A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual". Ask Virginia Tax or a tax professional for the return form and due date.
Virginia corporate income tax
Code of Virginia § 58.1-400 (Virginia, checked October 31, 2026) imposes the tax "at the rate of six percent" for each taxable year. Ask Virginia Tax which return your corporation files.
Sales tax
Code of Virginia § 58.1-603 (Virginia, checked October 31, 2026) (version headed "(Contingent expiration date)") describes the tax as "a license or privilege tax upon every person who engages in the business of selling at retail or distributing tangible personal property in this Commonwealth". Ask Virginia Tax about registering to collect it.
Selling into Virginia from another state
Code of Virginia § 58.1-612 (Virginia, as retrieved on November 1, 2026) says a dealer "shall be deemed to have sufficient activity within the Commonwealth to require registration under § 58.1-613 if it" meets any of several tests. Two of them: it "Receives more than $100,000 in gross revenue, or other minimum amount as may be required by federal law, from retail sales in the Commonwealth in the previous or current calendar year", or it "Engages in 200 or more separate retail sales transactions, or other minimum amount as may be required by federal law, in the Commonwealth in the previous or current calendar year".
Exemption certificates
Code of Virginia § 58.1-623 (Virginia, as retrieved on November 1, 2026) says "All sales or leases are subject to the tax until the contrary is established." The burden of proving that a sale isn't taxable "is upon the dealer unless he takes from the taxpayer a certificate to the effect that the property is exempt under this chapter."
Federal estimated tax
The IRS estimated taxes page (In the US (federal), last reviewed or updated September 25, 2026) says "Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed."
Deductions and write-offs
Confirm with your state how it treats each item.
- Health insurance: the IRS self-employment tax page (In the US (federal), last reviewed or updated October 30, 2026) says "Under Section 2042 of the Small Business Jobs Act, a deduction, for income tax purposes, is allowed to self-employed individuals for the cost of health insurance."
- Vehicle use: the IRS standard mileage rates page (In the US (federal), last reviewed or updated July 28, 2026) lists "Self-employed and business: 76 cents/mile" for "2026 mileage rates (July 1 – Dec. 31)".
- Keeping proof: the IRS recordkeeping page (In the US (federal), last reviewed or updated May 1, 2026) says "You must keep your records as long as needed to prove the income or deductions on a tax return."
Practical tips
- Know which band your income reaches. Code of Virginia § 58.1-320 (Virginia, checked October 31, 2026) starts at "Two percent on income not exceeding $3,000".
- Track invoices by status. Billed's invoice software page (checked October 31, 2026) says "Invoice reports show which invoices are paid, partially paid or past due, and you can see who owes you money and send them a payment reminder."
- Attach receipts to costs. Billed's expense tracking page (checked October 31, 2026) says "Attach the receipt when you record the expense, and it stays with that entry in your Billed account instead of in a drawer or an inbox."
- Bring these Code sections to your preparer and check them against Virginia Tax's forms.
Frequently asked questions
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At a glance
| Topic | What the Code of Virginia or the IRS says |
|---|---|
| First band | "Two percent on income not exceeding $3,000" (§ 58.1-320, Virginia, checked October 31, 2026) |
| Top band | "Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 1990" (§ 58.1-320, Virginia, checked October 31, 2026) |
| Corporations | "A tax at the rate of six percent" (§ 58.1-400, Virginia, checked October 31, 2026) |
| Sales tax levy | "in the amount of 4.3 percent" (§ 58.1-603, version headed "(Contingent expiration date)", Virginia, checked October 31, 2026) |
| Self-employment tax | "The self-employment tax rate is 15.3%." (IRS, In the US (federal), last reviewed or updated October 30, 2026) |
When this isn't for you
Meant for Virginia sole proprietors and small companies. Local taxes, payroll and audits are outside it, so take those to Virginia Tax or your preparer.