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VA · payroll profile

Virginia

Everything an out-of-state employer needs before running a Virginia payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 5.75%
Reciprocal agreements
5 states
SUI wage base 2026
$8,000
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 5.75%
Withholding certificate VA-4
Employee's Virginia Income Tax Withholding Exemption Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold From the first dollar
The Virginia employer withholding guide states no day or dollar de minimis safe harbor -- withhold on Virginia-source wages of nonresidents not covered by reciprocity. Virginia's separate individual FILING threshold (based on Virginia Adjusted Gross Income) is not a withholding safe harbor. Virginia does NOT accept federal Forms W-4/W-4P in place of the VA-4.
Local income taxes No
No local personal income or wage taxes in Virginia.

Reciprocity

Virginia exempts residents of 5 states from Virginia withholding, provided the employee files VA-4 with the employer.

District of ColumbiaKentuckyMarylandPennsylvaniaWest Virginia
Confirmed on Virginia Tax's reciprocity page. CONDITIONS DIFFER BY STATE. DC and KENTUCKY residents: must COMMUTE DAILY to Virginia and receive only wage/salary income. MARYLAND, PENNSYLVANIA and WEST VIRGINIA residents: must be present in Virginia 183 days or fewer during the year, not maintain an abode in Virginia, and receive only wage/salary income. The VA-4 exemption must be RE-CERTIFIED every year. Note Virginia residents working in Arizona may separately claim exemption from Arizona withholding on Arizona Form WEC.

States that exempt Virginia residents

A Virginia resident working in these states files that state's certificate and is taxed only by Virginia.

ArizonaDistrict of ColumbiaKentuckyMarylandPennsylvaniaWest Virginia

Unemployment insurance and paid leave

Taxable wage base 2026 $8,000
2025 base was $8,000.
New employer rate 2.5%
New employers pay 2.50% (2.73% for new construction-related employers, including the pool and fund-building charges). Virginia has enacted a paid family and medical leave program with contributions beginning April 1, 2028 - nothing is withheld in 2026.
Experience rate range 0.1% – 6.2%
Experience-rating method benefit ratio
Employee UI contribution No
Paid family / medical leave No
Virginia's paid family and medical leave program contributions begin April 1, 2028; nothing is withheld in 2026.

Employer registration

Tax agency
Virginia Department of Taxation
UI agency
Virginia Employment Commission (VEC)

Sources

tax.virginia.gov · tax.virginia.gov · tax.virginia.gov · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.