Virginia LLC Taxes Explained: Effectively Flat 5.75%
Virginia's income tax has four graduated brackets — but the top rate kicks in so early that it's effectively flat at 5.75% for most working Virginians. Here's every layer, with an estimator that shows the real picture.
A default pass-through LLC generally reports income through its owners. Virginia permits an annual elective 5.75% PTET on the applicable income attributable to eligible owners: natural persons subject to Virginia individual income tax and estates/trusts subject to fiduciary income tax. Eligible owners receive their portion of tax paid as a refundable credit; state SALT-related income additions require review. Elect on a timely filed return, including extensions. File and pay electronically; estimated payments are generally quarterly. Default owner-level taxation does not mean every LLC owes zero entity-level tax.
- State income tax
- Graduated 2%–5.75%
- Top bracket threshold
- $17,000 — reached quickly
- Local income tax
- None — anywhere in Virginia
- Entity-level tax (default)
- Default pass-through; elective 5.75% PTET separate
- Franchise tax
- None
- Sales tax
- Use actual item/destination rate
The Tax Layers in Virginia
Federal: income + self-employment tax
Pass-through profits hit your 1040 at your federal bracket, plus 15.3% SE tax on 92.35% of net profit — usually the largest line for most LLC owners.
Virginia state income tax: graduated, but effectively flat for most earners
Four brackets, but the 5.75% top rate kicks in above just $17,000 of taxable income — most working Virginians pay close to this rate on the bulk of their income.
No local income tax
Virginia has no local individual income tax; local BPOL and other business obligations remain separate.
Sales tax: 5.3% effective + local (if applicable)
Use the actual item and destination sales-tax rate; see the Virginia Tax lookup.
Estimate Your Combined Bill
Virginia LLC Tax Estimator
Limited default-owner illustration; excludes elective PTET, credits and state additions
The Effectively Flat Top Rate
Virginia’s graduated individual rates are 2%, 3%, 5% and 5.75%, with the top bracket above $17,000 of taxable income. Use current-year deductions, exemptions and return instructions for actual liability.
The S-Corp Question (~$60–80K Profit)
An S-Corp election changes federal taxation: reasonable salary (payroll-taxed) plus distributions that escape the 15.3% SE tax. File Form 2553 — never Form 8832, which is the C-Corp election. Break-even lands around $60–80K of consistent profit after payroll and accounting costs. Distributions still face Virginia's effectively-flat 5.75% income tax as income — the election shields SE tax, not state income tax. Run your numbers in the S-Corp election guide.
Your Virginia Tax Calendar
| Date | What's Due |
|---|---|
| May 1 / Jun 15 / Sep 15 / Jan 15 | Quarterly estimated taxes / annual filing — Virginia's individual filing deadline is May 1, not April 15 |
| Last day of anniversary month | Annual Registration Fee to the SCC ($50) |
| Mar 15 | Form 1065 (multi-member LLCs) + K-1s |
| Apr 15 | Form 1040 (federal) — Virginia's own return is due May 1 |
| Monthly/Quarterly | Sales tax returns via the Department of Taxation, if applicable |
Virginia permits an annual elective 5.75% PTET on the applicable income attributable to eligible owners: natural persons subject to Virginia individual income tax and estates/trusts subject to fiduciary income tax. Eligible owners receive their portion of tax paid as a refundable credit; state SALT-related income additions require review. Elect on a timely filed return, including extensions. File and pay electronically; estimated payments are generally quarterly. Default owner-level taxation does not mean every LLC owes zero entity-level tax.
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Virginia elective PTET pathway
Virginia permits an annual elective 5.75% PTET on the applicable income attributable to eligible owners: natural persons subject to Virginia individual income tax and estates/trusts subject to fiduciary income tax. Eligible owners receive their portion of tax paid as a refundable credit; state SALT-related income additions require review. Elect on a timely filed return, including extensions. File and pay electronically; estimated payments are generally quarterly. Default owner-level taxation does not mean every LLC owes zero entity-level tax.
Virginia LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. For filing and ongoing compliance, confirm the requirements with the responsible state agency. This is educational information, not legal or tax advice.
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