Request a Demo

Virginia Wage and Payroll Tax Facts

February 05, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Virginia.

Select a state or federal tax guide
Skip to end of table of contents

Virginia requires a minimum wage rate that is substantially higher than the rates required by the federal government. It also has a few reciprocal agreements with other states to provide tax relief for citizens who work and live in different states.  
 
When it comes to processing payroll, Virginia-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 30, 2024. It is not intended as legal or tax advice.

Virginia Minimum Wage Rates

Wage Type

Virginia Rates

Federal Rates

Minimum Wage

 $12.00

$7.25

Tipped Minimum Wage

 $2.13

$2.13

Actual Tip Credit

 $9.87

$5.12

Virginia State Income Tax (SIT) Rates

Virginia's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:

Income Tax Bracket
[Over X] - [But not over Y]

 2024 Income Tax Rate

$0 - $3,000

 2.00%

$3,000 - $5,000
$60 + 3.00% of excess over $3,000

$5,000 - $17,000

 $120 + 5.00% of excess over $5,000

$17,000 or greater

$720 + 5.75% of excess over $17,000

 

Additional Virginia SIT Details

Valid Filing Statuses
  • Single
  • Married; filing separately, Married; filing jointly

Exemptions
  • Any services or individuals not subject to withholdings
  • Certain interstate carrier employees
  • Low Virginia adjusted gross income
  • Nonresidents from reciprocating states (DC, KY, MD, PA, and WV)
  • Persons who owed and expect to owe no Virginia taxes
  • Nonresident spouses of military personnel
  • Those aged 65 and over
  • Those with blindness

Form W-4

 Form VA-4

Reconciliation Frequency

Annual

Virginia State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Virginia SUI Tax Details

Taxable Wage Base

$8,000

Employee Subject to Tax

No

Rates for Experienced Employers

0.1% - 6.2%

Rates for New Employers

2.5%

Effective Period

Calendar Year

Voluntary Contributions Allowed

No

Virginia State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Virginia, however, doesn't require employers to collect an SDI tax.

Miscellaneous Virginia Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Virginia currently has reciprocal agreements with the following states:

  • Kentucky
  • Maryland
  • Pennsylvania
  • Washington D.C.
  • West Virginia

Employers should withhold income tax for the employee’s resident state, as their non-residency status should be declared on their submitted Form VA-4. 

Paid Sick Leave (PSL)

The state of Virginia doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.

Paid Family and Medical Leave (PFML)

The state of Virginia doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.

Virginia Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Taxation for withholding tax topics and the Employment Commission for unemployment tax topics.

Registration Details

Department of Taxation

Employment Commission

Phone

 (804) 367-8037 (804) 786-7159

Online Registration

 Business Tax iReg Page

Registration Form

 Form R-1 Form T-FC-27

Registration Instructions

 Online and paper registration options are available. Account numbers will be issued during the online process or in 2-4 weeks via mail. Online and paper registration options are available. Account numbers will be issued during the online process or in 1-2 weeks via mail.

Employer Self-Service Login

 Business Tax iFile Page

Additional Virginia Payroll Tax Resources

 

This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.

011002000110a-taxservices-fullwidth

Get Taxes Done Right, Without the Stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services