Capital Gains Calculators
Virginia Capital Gains Tax Calculator
Four brackets on paper, but the top rate kicks in at just $17,000 — meaning almost any real capital gain is effectively taxed at a flat 5.75%.
Calculate your Virginia capital gains tax
No local tax anywhere in the state — includes federal capital gains tax and NIIT.
Virginia has no city or county income tax anywhere. This is a planning estimate — confirm current figures with the Virginia Department of Taxation.
A progressive system that behaves like a flat tax
Virginia technically has four income tax brackets, ranging from 2% to 5.75% — but the top bracket starts at just $17,000 of taxable income. For any filer whose other income already exceeds that threshold, which describes most working adults, essentially the entire capital gain lands in the top 5.75% bracket. On paper, Virginia looks progressive; in practice, for anyone selling a meaningful gain, it functions almost exactly like a flat tax.
| Bracket | Rate |
|---|---|
| $0 – $3,000 | 2% |
| $3,000 – $5,000 | 3% |
| $5,000 – $17,000 | 5% |
| Above $17,000 | 5.75% |
Ordinary income treatment, no local tax
Like most states, Virginia taxes capital gains exactly like wages — no preferential rate, no discount for holding period. Where Virginia stands out is what it doesn't add: no city or county levies its own income tax anywhere in the state, unlike neighboring Maryland (up to 3.2% county tax) or DC (up to 10.75% on its own). For a Northern Virginia resident specifically weighing a move across the Potomac, that's a real, quantifiable difference.
Worth watching: a possible standard deduction change
What Virginia does exempt
- Social Security benefits are not taxed by Virginia at all.
- Military retirement pay has been fully exempt from Virginia income tax since 2022 — a genuinely valuable provision for the state's large veteran population, particularly around the Hampton Roads and Northern Virginia military communities.
Neither exemption reduces tax on investment or property capital gains specifically, which remain fully subject to Virginia's graduated rates regardless of age or income source.
Virginia's bracket structure, the $17,000 top-bracket threshold, and the absence of local income tax verified against multiple independent 2026 Virginia tax guides. The standard deduction sunset claim is sourced to a single tax planning firm and flagged accordingly. This is a planning estimate — confirm current figures with the Virginia Department of Taxation.
Frequently asked questions
Before you sell an appreciated asset in Virginia.
Does Virginia have a lower tax rate for long-term capital gains?
No. Virginia taxes all capital gains as ordinary income, at the same graduated rates that apply to wages, with no discount for how long you held the asset.
What is Virginia's top income tax rate?
5.75%, and it applies starting at just $17,000 of taxable income — meaning most filers with a meaningful capital gain pay this rate on essentially the entire gain.
Does Virginia have local or city income taxes?
No. No city or county in Virginia levies its own income tax, unlike neighboring Maryland or Washington, DC.
Is Virginia's standard deduction changing?
One tax planning source indicates it's scheduled to decrease significantly after the 2026 tax year, though this hasn't been independently confirmed across multiple sources - worth confirming directly with the Virginia Department of Taxation.
Does Virginia tax Social Security or military retirement pay?
No to both — Social Security benefits are not taxed, and military retirement pay has been fully exempt from Virginia income tax since 2022. Neither exemption applies to capital gains specifically.