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Capital Gains Tax in Virginia
By Priya Raman
Virginia's 5.75% lands the state right in the middle of the field.
Virginia's 5.75% lands the state right in the middle of the field.
Virginia taxes capital gains as ordinary income, topping out at 5.75% for the state's highest bracket. Combined with the federal 20% rate and the 3.8% NIIT, an investment property seller faces a ceiling of 29.6%, close to the national median.
A 1031 exchange defers the entire 29.6%, state and federal together, by rolling the sale proceeds into a new like-kind property. Virginia doesn't impose additional requirements beyond the federal exchange rules, so the same 45-day identification and 180-day closing clock applies. Sketch out the swap in the 1031 exchange calculator and keep both dates in view with the timeline calculator.
That 5.75% top bracket has held steady in Virginia for a while, and it applies to capital gains the same way it applies to salary income. Add it to the federal and NIIT shares and the combined figure reaches 29.6%. Get the specific number for a sale, recapture included, from the capital gains tax calculator.
None of the Virginia math above accounts for closing costs, selling expenses, or basis adjustments specific to your property. Work through your actual Virginia numbers in the capital gains tax calculator.