Virginia payroll taxes
Every tax withheld from a Virginia paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: oui.doleta.gov, taxfoundation.org, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Virginia SUTA | — | 2.5% (new) | $8,000 |
| Virginia income tax | 2%–5.75% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Virginia charges new employers 2.5% on the first $8,000 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.1% to 6.2%. New employer rate is 2.5% plus add-ons (amounts not confirmed). Wage base fixed by statute.
Fund-building charge and pool cost charge are included in the assigned rate. A separate administrative fee (reported as 0.05%) began in 2025.
Register and file with the Virginia unemployment tax agency.
Income tax withholding
Virginia has a graduated income tax with 4 brackets, from 2% up to 5.75% on taxable income over $17,000 for single filers.
Frequently asked questions
- What payroll taxes do employers pay in Virginia?
- Social Security, Medicare, federal unemployment (FUTA) and Virginia unemployment insurance (SUTA).
- What is the Virginia SUTA wage base for 2026?
- $8,000 per employee.
- Does Virginia require state income tax withholding?
- Yes. Employers withhold Virginia income tax based on the employee's state withholding certificate or federal W-4.