Virginia 2026 Tax Increases

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

Legislative Status (as of Feb 18, 2026)

HB1074: Comprehensive tax structure changes — ⏸️ Continued to 2027 Session | Patron: Phil M. Hernandez
HB378: Net investment income tax — ❌ Failed | Patron: Elizabeth B. Bennett-Parker
HB900: Sales & use tax on services and digital property — ⏸️ Continued to 2027 Session | Patron: Richard C. "Rip" Sullivan, Jr.
HB978: Sales & use tax on digital services — ⏸️ Continued to 2027 Session | Patron: Vivian E. Watts
HB979: Standard deduction increases — ⏸️ Continued to 2027 Session | Patron: Vivian E. Watts
HB1094: Firearms excise tax on manufacturers — 🔀 Incorporated into another bill | Patron: Amy J. Laufer
HB207: Firearm suppressor tax — ❌ Failed | Patron: Karen Keys-Gamarra
HB334: Local sales tax for schools — ✅ Passed House (in Senate) | Patron: Sam Rasoul
HB550: Admissions tax in counties — ✅ Passed House (in Senate) | Patron: Jessica L. Anderson
HB557: Tangible personal property tax; electric vehicles — ✅ Passed House (in Senate) | Patron: Atoosa R. Reaser
SB66: Additional local sales tax for schools — 🔀 Incorporated into another bill | Patron: Jeremy S. McPike
SB730: Sales & use tax on digital property — ⏸️ Continued to 2027 Session | Patron: Scott A. Surovell