Does Virginia have a special capital gains rate?

No. Virginia taxes capital gains as ordinary income at its graduated rates of 2% to 5.75%. There is no preferential long-term capital gains rate at the state level, so a long-term gain is taxed the same as wage income in Virginia.

What are the 2024 federal long-term capital gains rates?

Long-term gains (assets held more than one year) are taxed at 0%, 15%, or 20% depending on taxable income. For 2024 single filers, the 0% bracket runs to about $47,025, the 15% bracket to about $518,900, and 20% applies above that. Married-joint thresholds are roughly double.

How are short-term gains taxed?

Short-term gains, from assets held one year or less, are taxed at your ordinary federal income tax rate rather than the preferential long-term rates. This calculator lets you enter your marginal federal rate to estimate the short-term federal tax, and Virginia taxes them as ordinary income too.

Is there a federal surtax on investment income?

Yes. The 3.8% Net Investment Income Tax (NIIT) can apply to investment income, including capital gains, once modified AGI exceeds $200,000 single or $250,000 married filing jointly. This estimator focuses on the base capital gains and Virginia tax; factor NIIT separately if you are above those thresholds.

Does Virginia offer any capital gains exclusion?

Virginia provides a subtraction for certain long-term capital gains from investments in qualified technology and science start-ups, but most ordinary stock and property gains receive no special state exclusion. Confirm eligibility for the technology-business subtraction at tax.virginia.gov.

Virginia Capital Gains Tax Calculator

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Selling stock, a second home, or other investments in Virginia can trigger tax at two levels: federal capital gains tax and Virginia state income tax. This calculator estimates both. The key Virginia fact is that the state taxes capital gains as ordinary income — there is no lower long-term rate.

How it works

For a long-term gain (held more than a year), the federal rate is 0, 15, or 20 percent depending on where your taxable income falls in the brackets:

Federal LTCG rate = 0% / 15% / 20% by taxable income bracket
Virginia tax      = graduated 2%-5.75% on the gain (ordinary income)
Total             = federal capital gains tax + Virginia tax

Short-term gains (held one year or less) are taxed at your ordinary federal rate instead, which you can enter directly. Virginia applies its graduated brackets (2 percent up to $3,000, 3 percent to $5,000, 5 percent to $17,000, and 5.75 percent above) on top of your other income, so the gain is generally taxed at the 5.75 percent marginal rate for most filers.

Example

A 50,000-dollar long-term gain for a single filer with 90,000 dollars of other taxable income falls in the federal 15 percent bracket: 7,500 dollars federal. Virginia adds roughly 5.75 percent, about 2,875 dollars, for a combined tax near 10,375 dollars before any NIIT.

Notes

This estimate excludes the 3.8 percent Net Investment Income Tax that can apply above 200,000 dollars single or 250,000 dollars joint, and it assumes the gain stacks on top of your other income for the Virginia marginal rate. Bracket thresholds change yearly. Verify at irs.gov and tax.virginia.gov.