Virginia tax deductions and write-offs (2026)

No: Virginia doesn't offer a renter's credit or rent rebate. Virginia has no statewide tax credit, deduction, or rebate specifically for renters. Real estate tax relief for older and disabled residents in Virginia is set by each locality and is generally available only to homeowners. Lower-income renters can still claim Virginia's earned income credit: 20% of the federal EITC, refundable (tax years 2025–2029); alternatively a 20% nonrefundable version.

Yes: Virginia's yearly personal property tax on cars is based on value, so it's deductible as a personal property tax if you itemize.

Yes on your federal return if you itemize, within the $40,400 SALT cap. Virginia adds its own break: local tax relief or deferral for owners 65+ or disabled; each locality sets its own income and asset limits.

Partly. Virginia lets each recipient of any age subtract up to $40,000 of military benefits for 2025 and later; amounts above $40,000 are taxed. The subtraction phased in at $10,000 for 2022, $20,000 for 2023 and $30,000 for 2024. It covers military retirement pay and Survivor Benefit Plan payments to surviving spouses. Medal of Honor recipients exempt all military retirement pay. HB 137 (2026), which would have raised the cap and indexed it to inflation, died in committee, so the cap stays $40,000 for 2026. Other retirement income: Pensions and 401(k)/IRA withdrawals are taxable, but taxpayers 65+ may claim a $12,000 age deduction, reduced dollar-for-dollar when adjusted AGI exceeds $50,000 single / $75,000 married.

Partly. Pensions and 401(k)/IRA withdrawals are taxable, but taxpayers 65+ may claim a $12,000 age deduction, reduced dollar-for-dollar when adjusted AGI exceeds $50,000 single / $75,000 married. Classified as partial because of the general age deduction, which applies to any income rather than only retirement income. Taxpayers born on or before January 1, 1939 get the full deduction regardless of income.

No. Virginia does not tax Social Security benefits; any federally taxable amount is subtracted on the Virginia return. Statutory basis: Va. Code 58.1-322.02(3).

Yes: Virginia offers the Virginia Earned Income Tax Credit, 20% of the federal EITC, refundable (tax years 2025–2029); alternatively a 20% nonrefundable version (refundable). Pick only one: the refundable EITC, the nonrefundable EITC, or the Credit for Low-Income Individuals. The 2026 Appropriation Act extended the refundable version through tax year 2029.

Only instead of income tax: itemizers in Virginia pick sales tax (5.3% state rate, about 5.77% with local taxes) or state income tax, whichever is bigger. Instead of the general 5.3%–7% rate, vehicles pay a 4.15% motor vehicle sales and use tax (minimum $75); groceries are taxed at 1% statewide.

Yes on your Virginia return: $4,000 per account per year (any filing status); unlimited if age 70+. Only contributions to the state's own plan count. Virginia529 plans only; deducted by the account owner, not other contributors; prior deductions recaptured on nonqualified withdrawals.

No: Virginia doesn't offer a state child tax credit. No child tax credit or care credit. Virginia allows a deduction (not a credit) for child and dependent care expenses equal to the amount used to compute the federal credit. Dependent exemption is $930, plus $1,000 for children in permanent foster care. Virginia does have an earned income credit: 20% of the federal EITC, refundable (tax years 2025–2029); alternatively a 20% nonrefundable version.

Yes, as a business expense: Virginia charges $100 to form an LLC; ongoing: $50 annual registration fee. Due by last day of the formation anniversary month; $25 penalty if late.

Virginia's top 5.75% rate starts at just $17,000 of income, and residents 65+ can take an age deduction of up to $12,000.