Virginia

The personal income tax schedule has four brackets ranging from 2% to 5.75% (on amounts over $17,000). The corporate income tax rate is a flat 6%. The state sales and use tax rate is 3.5%, but there is also a statewide local sales tax of 1%. Food is taxed at 3.5% as of 1 April 2003. There are many pages of exemptions from the general tax, and most services are not covered. The state imposes excise taxes covering motor fuels, tobacco products, insurance premiums, public utilities, alcoholic beverages, amusements, and other selected items. Virginia's two and a half cent tax on cigarettes is the lowest in the country. Virginia's estate tax accounted for 1% of state collections in 2002. Other state taxes include various license fees, stamp taxes, state property taxes, and severance taxes (total collection of $1,644 in 2002). Most property taxes are collected locally. In all, local governments and taxing units collect 40% of Virginia's total state and local revenue.

The state collected $12.781 billion in taxes in 2002, of which 52.5% came from individual income taxes, 21.9% from the general sales tax, 15.5% from selective sales taxes, 4.2% from state license fees, and 2.4% from corporate income taxes. In 2003, Virginia ranked 40th among the states in terms of combined state and local tax burden, which amounted to about 8.9% of income

The following table from the US Census Bureau provides a summary of taxes collected by the state in 2002.