VirginiaIncome tax, state; establishes a new income tax bracket beginning in taxable year 2026.
What it does
Imposition of income tax. Establishes a new income tax bracket beginning in taxable year 2026, that taxes income in excess of $1 million at a rate of 10 percent. Currently, all income in excess of $17,000 is taxed at the rate of 5.75 percent.
More detail
The bill provides that, from the additional revenue generated from such increased tax rate upon income in excess of $1 million, 50 percent will be dedicated to providing additional basic aid funding for public schools, 30 percent will be dedicated to the Child Care Subsidy Program, and 20 percent will be dedicated to the Virginia Housing Trust Fund. The bill contains technical amendments.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Feb 11Incorporated by Finance (HB979-Watts) (Voice Vote)Latest
- Feb 9Subcommittee recommends incorporating (Voice Vote)
- Feb 5Assigned HFIN sub: Subcommittee #3Minor
- Jan 30Fiscal Impact statement From TAX (1/30/2026 1:24 pm)
- Jan 7Referred to Committee on FinanceMinor
- Jan 7Prefiled and ordered printed; Offered 01-14-2026 26101862DIntroduced