Virginia 2026 Tax Increases

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Virginia 2026 Tax Increases — Comprehensive package of new taxes proposed by Virginia Democrats in the 2026 General Assembly session.

Summary

Virginia Democrats introduced dozens of tax increases across income, sales, property, and specialty taxes. The Americans for Tax Reform described it as Democrats "pouncing on Virginia taxpayers" under unified control.

Proposed Tax Increases

Income Taxes

  • HB1074: New 7.75% tax bracket on incomes over $1 million
  • HB979: Two new brackets — 8% over $600K and 10% over $1 million
  • HB378: 3.8% investment tax on top of state income taxes

Sales Taxes

  • SB730, HB1179, HB900, HB978: Increases the sales tax in Northern Virginia, adds additional sales tax for home deliveries, new taxes on streaming services, concerts, gym memberships, nail salons, barber shops, tanning beds, tattoo parlors, dry cleaners, shoe repairs, carpentry, painting, plumbing, electrical, HVAC, landscaping, housekeeping, swimming pool maintenance, travel agencies, and shipping services
  • HB334 / SB66: Allows every locality to raise the state sales tax by 1%
  • HB1000: Raises the sales tax for Stafford County
  • HB954: Rounds up all state and local taxes by the nearest 5-cent increment

Firearms Taxes

  • HB1094: 11% sales tax on all firearms and ammunition
  • HB207: $500 sales tax on firearm suppressors

Other Taxes

  • HB550: New tourism tax on event entrance fees
  • HB524: Raises the hotel tax in Arlington
  • HB900: Raises the car tax for electric vehicles

Sources