Virginia taxes capital gains at 5.75%. Combined with federal taxes, your effective rate on a home sale could reach 24.6%.
VA State Rate
5.75%
Top marginal rate
Federal Rate
15%
Most common long-term bracket
Combined Effective
24.6%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If Virginia is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in Virginia don't qualify for the exclusion. You'll owe 5.75% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In Virginia, homes sold in February sell for 6% more than those sold in October (-7%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in Virginia and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
| 0% | $0 | No state income tax | |
| 4% | $6,000 | Flat tax rate | |
| 4.5% | $6,750 | Flat tax rate (2026) | |
| 5.12% | $7,680 | Top marginal rate | |
VirginiaYou | 5.75% | $8,625 | Top marginal rate |
| 5.75% | $8,625 | Top rate; local surcharge possible | |
| 10.75% | $16,125 | Top marginal rate |
Selling in Tennessee instead of Virginia would save $8,625 in state tax on a $150K gain.
Virginia taxes capital gains as ordinary income at rates up to 5.75%. The top rate kicks in at relatively low income ($17K+).
Northern Virginia (Arlington, Fairfax, Loudoun counties) drives the state's most expensive market, fueled by government and tech employment.
Virginia does not offer a preferential capital gains rate. The flat 5.75% applies to nearly all sellers.
The Hampton Roads market (Norfolk, Virginia Beach) and Richmond have more moderate property values with smaller typical gains.
Offering buyer concessions?
Our sister tool helps you model different scenarios and maximize your position.