VirginiaVirginia taxpayers could subtract some stock-option gains taxed elsewhere
For tax years beginning in 2026 or later, Virginia taxpayers could subtract gains from certain employer stock options when another state has taxed them.
What it does
Workers could subtract gains from exercising qualifying employer stock options if another state already taxed those gains. The options must meet the bill's eligibility rules.
Argument forEligible workers could subtract gains another state has taxed, which may reduce the chance of paying state income tax twice on the same gains.
Argument againstWorkers whose options miss the plan, approval, or ownership rules might not qualify to subtract the gains.
More detail
Virginia taxpayers could subtract qualifying stock-option gains that were taxed in another state. This applies to individuals exercising options granted because of their employment to buy stock in their employer corporation or its parent or subsidiary. The option must meet the bill's definition, including rules for the employer plan, shareholder approval, option price, transfer, and the worker's ownership. The subtraction would apply to tax years beginning on or after January 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jul 21Continued from last sessionLatest
- Jan 20Continued to next session in Finance and Appropriations (9-Y 5-N)
- Jan 17Fiscal Impact statement From TAX (1/17/2026 9:31 am)
- Jan 9Referred to Committee on Finance and AppropriationsMinor
- Jan 9Prefiled and ordered printed; Offered 01-14-2026 26101347DIntroduced
Taxes & Budget