VirginiaTaxation provisions; increases standard deduction.
What it does
Taxation provisions. Increases the standard deduction to $10,000 for single individuals, $15,000 for individuals eligible to claim head of household for federal tax purposes, and $20,000 for married individuals beginning in taxable year 2027 and indexes such deduction amount for inflation beginning in taxable year 2028. The bill also removes the aggregate amount of housing opportunity tax credits that may be claimed for qualified projects across all calendar years and exempts food purchased for human consumption and essential personal hygiene products from the local sales tax.
More detail
The bill establishes two new tax brackets beginning on and after January 1, 2027, that tax income in excess of $600,000 but not in excess of $1,000,000 at a rate of eight percent and income in excess of $1,000,000 at a rate of 10 percent. Finally, the bill provides that 50 percent of revenues generated by the new tax brackets will be dedicated to localities for maintenance, operation, capital outlays, debt and interest payments, or other expenses incurred in the operation of public schools.
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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 11Incorporates HB188 (Convirs-Fowler)Latest
- Feb 11Continued to next session in Finance (Voice Vote)
- Feb 9Subcommittee recommends continuing to (Voice Vote)
- Feb 8Fiscal Impact statement From TAX (2/8/2026 9:56 pm)
- Feb 8House subcommittee offered
- Feb 7Fiscal Impact statement From TAX (2/7/2026 8:31 am)
- Feb 5Assigned HFIN sub: Subcommittee #3Minor
- Jan 13Referred to Committee on FinanceMinor
- Jan 13Prefiled and ordered printed; Offered 01-14-2026 26105358DIntroduced