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Virginia: minimum wage, income tax and cost of living

Virginia in numbers: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for a budget.

Updated: October 11, 2026

What it costs to live and work in Virginia: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.

VirginiaSource
Minimum wage$12.77 an hourCode of Virginia § 40.1-28.10, Minimum wage
State income tax2 % to 5.75 %Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
State sales tax5.3 %Tax Foundation: State and Local Sales Tax Rates, 2026 (rates as of January 1, 2026)
Median gross rent$1,646 a month (2024)US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 Median Gross Rent (Dollars), by state

Virginia's minimum wage is $12.77 an hour in 2026; by law it rises to $13.75 on January 1, 2027 and $15.00 on January 1, 2028.

Four rates from 2 % to 5.75 %; the top rate starts at taxable income over $17,000, so most workers pay it.

The statewide rate is 5.3 %, which includes a 1 % local tax levied everywhere; some regions add more (average local rate 0.47 %).

What income does rent in Virginia take?

A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,646 a month, that means a household income of about $65,800 a year before tax.

Work out your take-home pay

Good to know

  • Food for home consumption is taxed at a reduced 1 % throughout Virginia (Virginia Department of Taxation).
  • Minimum wage steps fixed in the Code of Virginia: $13.75 in 2027, $15.00 in 2028, then indexed to inflation from 2029.

Sources

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