Virginia legislation · 2027 Regular Session
Virginia SB849: A BILL to amend and reenact § 58.1-320 of the Code of Virginia, relating to individual income tax; rates and distribution.
Status: In committee, October 26, 2026
Individual income tax; rates and distribution. Establishes a new individual income tax bracket on income above $1 million at a rate of 10 percent beginning in taxable year 2027. Under current law, all income in excess of $17,000 is taxed at the rate of 5.75 percent. The bill provides that 40 percent of revenues generated by the new tax bracket will be dedicated to providing additional basic aid funding for public schools, 35 percent to the Child Care Subsidy Program, and 25 percent to the Virginia Housing Trust Fund. This bill also contains technical amendments.
What the bill says
To amend and reenact § 58.1-320 of the Code of Virginia, relating to individual income tax; rates and distribution. ---------- Patron--Locke ---------- Referred to Committee on Finance and Appropriations ---------- 1. That § 58.1-320 of the Code of Virginia is amended and reenacted as follows: § 58.1-320. Imposition of tax. A. A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as ] . 2. Three percent on income in excess of $3,000, but not in excess of $5,000 [] . [] [] [] [] 3. Five percent on income in excess of $5,000 but not in e.
From the introduced text, October 26, 2026:
A BILL to amend and reenact § 58.1-320 of the Code of Virginia, relating to individual income tax; rates and distribution. ---------- Patron--Locke ---------- Referred to Committee on Finance and Appropriations ---------- 1. That § 58.1-320 of the Code of Virginia is amended and reenacted as follows: § 58.1-320. Imposition of tax. A. A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as ] . 2. Three percent on income in excess of $3,000, but not in excess of $5,000 [] . [] [] [] [] 3. Five percent on income in excess of $5,000 but not in excess of $17,000 for taxable years beginning January 1, 1990 [] . [] [] [] [] [DELETED: and] 4. a. Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 1990, through December 31, 2026; and b. Five and three-quarters percent on income in excess of $17,000 but not in excess of $1,000,000 for taxable years beginning on and after January 1, 2027. 5. Ten percent on income in excess of $1,000,000 for taxable years beginning on and after January 1, 2027. B. All revenues collected on income taxed under subdivision A 5 shall be distributed as 2. Thirty-five percent of such revenues shall …