You’re staring at your paycheck or finishing up a tax return, and you start wondering why that "local" chunk of change is missing—or why it's there at all. If you’ve ever lived in Maryland or Pennsylvania, you’re probably used to the "piggyback" tax where the county takes its own slice of your income. But Virginia is a different beast entirely.
Honestly, the most confusing thing about virginia county income tax rates is that for most people, they don't actually exist.
Wait. Let me rephrase. The authority exists, but the reality on the ground is way different. If you’re looking for a list of 133 different tax rates for every county from Albemarle to York, you’re going to be looking for a long time.
💡 You might also like: Why 767 5th Ave NY Still Dominates the Manhattan Skyline
The Local Income Tax "Ghost"
Here’s the deal. Virginia law actually allows certain counties and cities to slap on a local income tax of up to 1%. It’s right there in the Virginia Code (§ 58.1-300). Places like Fairfax, Loudoun, and Arlington—plus big cities like Virginia Beach and Norfolk—have the legal green light to do it if they hold a referendum and the voters say "yes."
But here’s the kicker: nobody has done it.
You’ve got all these jurisdictions with the power to tax your income, and yet they choose not to. Instead, they lean incredibly hard on property taxes and "car taxes" (personal property tax). So, when you’re hunting for virginia county income tax rates, you’re basically looking at a big, fat 0.00% across the board for local income levies.
But don’t celebrate just yet.
What You’re Actually Paying (The Real Numbers)
Just because Fairfax County isn't taking a 1% bite out of your check doesn't mean the Commonwealth isn't. Virginia uses a graduated state income tax system. This is what people usually mean when they complain about their "local" taxes. They see the Virginia Department of Taxation taking money and assume it's tied to their zip code.
For the 2025 and 2026 tax years, the brackets haven't moved much, though there's been plenty of noise in Richmond about it.
- 2% on the first $3,000 of taxable income.
- 3% on the next $2,000 (up to $5,000).
- 5% on the next $12,000 (up to $17,000).
- 5.75% on everything over $17,000.
Basically, if you make more than $17,000—which is most full-time workers—the vast majority of your income is getting hit at that 5.75% rate. It doesn't matter if you live in a cabin in Highland County or a penthouse in Rosslyn. The rate is the same.
The 2026 Shift: High Earners Take Note
Now, things are getting a bit spicy in 2026. There’s been a massive push in the General Assembly to add a new top bracket.
We are looking at a potential 7% tax rate for income over $600,000. Some even more aggressive bills, like HB188, have floated a 10% rate for those making over $1 million. The logic? Using that extra cash to fund public schools and the Child Care Subsidy Program.
If you're a high-income earner in Northern Virginia, this is the first time in decades you’ve had to worry about your "tax neighborhood" potentially changing in terms of total burden, even if the virginia county income tax rates stay at zero.
If Not Income, Then How Do Counties Get Their Money?
If the counties aren't taxing your paycheck, they’re definitely taxing your stuff. This is the "hidden" local tax that catches newcomers off guard.
- Real Estate Tax: This is the big one. Each county sets its own rate per $100 of assessed value. For example, in 2025, Alexandria was sitting around $1.135, while some rural counties are significantly lower.
- Personal Property Tax: Also known as the "Car Tax." This is the one Virginians love to hate. You pay an annual tax on the value of your vehicle.
- Business Professional and Occupational License (BPOL): If you’re a freelancer or small business owner, your "local income tax" effectively becomes the BPOL tax. It’s based on gross receipts, and it varies wildly by county.
Why Does This Matter for Your Move?
If you’re choosing between living in Alexandria or Arlington, you shouldn't be looking at virginia county income tax rates. They are identical (zero). Instead, you should be looking at the real estate levy and the car tax relief programs.
Some counties offer a higher "Personal Property Tax Relief" percentage than others. That’s where the real math happens.
Also, keep an eye on the standard deduction. For 2026, it's roughly $8,750 for individuals and $17,500 for joint filers. These numbers are finally being indexed for inflation, which is a huge win for keeping your taxable income lower before the state (not the county) takes its cut.
Your Action Plan for 2026 Taxes
Stop looking for local income tax forms. You won't find them because they don't exist. Focus your energy here:
- Check your car's assessment: Since personal property tax is the "real" local income tax, make sure your county hasn't overvalued your vehicle. You can often appeal this.
- Adjust your state withholding: If the new 7% bracket for $600k+ earners goes into full effect for your 2026 filings, you might need to bump up your state withholding now to avoid a penalty later.
- Track your "Digital" spending: Virginia is moving toward taxing digital goods (streaming, cloud storage). It's small, but it adds up to your total tax burden.
The bottom line? Virginia county income tax rates are the dog that never barked. The power is there, but for now, the counties are content to let the state handle the income while they handle the "stuff" you own.