Virginia State Tax Filing Guide: Forms, Deadlines, and Rules Explained

1. What Is Virginia State Tax Filing?

Virginia state income tax filing refers to the process of reporting taxable income to the Virginia Department of Taxation. Virginia imposes a personal state income tax on residents, part-year residents, and certain nonresidents with Virginia-source income.

Virginia individual income tax obligations apply separately from federal filing and include wages, self-employment income, rental income, business income, and other taxable Virginia-source earnings.

2. Who Must File in Virginia?

Most individuals who meet Virginia filing thresholds are required to file a Virginia state income tax return. Filing requirements depend on residency status, income level, and income source.

Quick checklist (common scenarios)

1. Virginia residents whose income exceeds the state filing threshold
2. Part-year residents for the period they lived or earned income in Virginia
3. Nonresidents with Virginia-source income (wages, business income, rentals, etc.)
4. Taxpayers with Virginia income tax withheld who want to claim a refund

3. Virginia Tax Forms – What to File

Virginia requires individuals who meet filing thresholds to submit a Virginia individual income tax return. The form required depends on residency status.

When Virginia tax forms are required

1. Form 760 – Virginia Resident Individual Income Tax Return
2. Form 760PY – Part-Year Resident Individual Income Tax Return
3. Form 763 – Nonresident Individual Income Tax Return

Virginia operates a personal state income tax system with graduated rates. Residents, part-year residents, and nonresidents with Virginia-source income should confirm their filing requirements early to avoid penalties or missed compliance obligations.

4. Documents Required for Virginia Tax Filing (When Applicable)

If you determine you need to file with Virginia, prepare these documents in advance:

1. W-2 and 1099 forms: showing any Virginia-source income
2. Federal tax return (Form 1040): used as the starting point
3. Virginia withholding records: required if Virginia income tax was withheld
4. Business or self-employment income records: profit, expenses, and Virginia-source income details
5. Prior Virginia returns (if any): for consistency and carryovers

5. DIY vs Accountant vs Managed Filing

Non-US founders and remote business owners typically choose one of three approaches: DIY, hire an accountant, or use managed filing services.

What typically increases complexity?

1. Virginia-source income (employment, rentals, business income, or limited industry-specific taxes)
2. Multi-state operations / apportionment questions
3. Pass-through entities with Virginia activity

6. Step-by-Step: Virginia State Tax Filing (When Required)

Step 1: Confirm if you have a Virginia filing requirement

Filing requirements depend on your residency status, income level, and whether Virginia income tax was withheld or you earned Virginia-source income. This determination is separate from federal filing rules.

Step 2: Confirm your federal filing and EIN status

If you operate a business, LLC, or earn U.S. income through an entity, you may need an Employer Identification Number (EIN) issued by the IRS. You can apply for an EIN directly with the IRS: Apply for an EIN.

Step 3: Gather federal and Virginia tax documents

Collect your federal tax return (Form 1040), W-2s, 1099s, and any records showing Virginia-source income or Virginia income tax withholding. Virginia returns generally start from federal figures.

Step 4: Determine the correct Virginia tax form

Virginia requires the correct individual income tax form based on residency status: Form 760 (resident), Form 760PY (part-year resident), or Form 763 (nonresident).

Common Virginia filing deadline: May 1 (or the next business day if it falls on a weekend or holiday).

Step 5: Prepare and file the return

File electronically through Virginia Tax Online, approved tax software, or with professional assistance. Federal filing information is governed by the IRS: IRS Filing Guidance.

Step 6: Submit, pay (if required), and keep records

Submit the return and pay any Virginia tax owed by the deadline. Keep copies of filed returns, payment confirmations, and supporting documents for future reference.

Step 7: Plan ahead for future years

Track Virginia-source income, withholding, and federal filing obligations throughout the year to avoid surprises and late filing penalties.

7. Tips to Avoid Virginia Tax Notices

• Confirm your residency status (resident, part-year, or nonresident)
• File a Virginia return if your income exceeds the state filing threshold
• Report all Virginia-source income accurately
• File by the Virginia deadline (generally May 1)
• Respond promptly to any Virginia Department of Taxation notices

8. Virginia Tax Costs, Penalties, and Timelines

• Personal income tax rate: Graduated rates up to 5.75%
• Late filing penalty (when return is required): Up to 5% per month (max 25%)
• Interest on unpaid tax: Set annually
• Filing extensions: Virginia generally accepts federal extensions for filing, but payment of any Virginia tax owed is still due by the original Virginia deadline (generally May 1)

9. Common Federal & Virginia Tax Forms

Virginia Tax Forms (when applicable)

• Form 760 / 760PY / 763 – Virginia individual income tax returns
• Virginia Corporate Income Tax Return (C-Corporations with Virginia nexus)
• Industry-specific Virginia tax filings (when applicable)
• Mining License Tax filings based on Virginia mining income
• Oil & Gas–related tax and production filings (not personal income tax)

10. Conclusion

Virginia operates a traditional personal income tax system with graduated tax rates and annual filing requirements for most residents and many nonresidents.

Understanding your situation helps you stay compliant without unnecessary filings. FormLLC can help confirm your Virginia tax obligations quickly and clearly.