PRIA Logo™
VirginiaHB10742027 Regular SessionHouse

State taxation; numerous changes to the Commonwealth's tax structure.

Sponsored By: Jen Kiggans - to resign 12/31 (Republican)

In Committee

Summary

State taxation in the Commonwealth. Makes numerous changes to the Commonwealth's tax structure. The bill creates a new income tax bracket for taxable years beginning on and after January 1, 2026, for income in excess of $1,000,000, which is to be taxed at 7.75 percent. The bill increases the standard deduction to $10,000 for single individuals and $20,000 for married individuals beginning in taxable year 2026. The bill also increases the income tax subtraction available for military benefits from $40,000 to $60,000 for taxable years beginning on and after January 1, 2026, but before January 1, 2027. For taxable years on and after January 1, 2027, such $60,000 amount shall be adjusted annually for inflation. Under the bill, eligible low-income taxpayers may claim a refundable income tax credit equal to 25 percent of the federal earned income tax credit claimed by the taxpayer for the same taxable year. Current law allows such a taxpayer to claim a tax credit equal to 20 percent of the federal credit claimed by the taxpayer in the same year. The bill establishes a refundable income tax credit for taxable years 2026 through 2030 for taxpayers (i) with a Virginia adjusted gross income equal to or less than 250 percent of the poverty guidelines and (ii) eligible for a tax credit pursuant to § 36B of the Internal Revenue Code in an amount equal to 100 percent of such taxpayer's enhanced premium credit, defined in the bill. The total amount of credits allowed does not exceed $50 million per taxable year, but no credit is allowed during any taxable year in which § 36B of the Internal Revenue Code is in effect. The bill also creates a one-time tax credit in taxable years 2026 through 2030 for taxpayers whose households include dependents younger than 6 years of age and whose family Virginia adjusted gross income, defined in the bill, does not exceed $100,000. Such credit is in an amount equal to $400 for each such dependent and only one credit may be claimed for each such dependent. The bill provides that, if the taxpayer is a resident of the Commonwealth for the full taxable year, the credit is refundable and requires the Department of Taxation to develop a process allowing taxpayers to elect to receive any such refund in multiple payments. Otherwise, the credit is nonrefundable.

Subcommittee #3

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

No Economic Impacts Identified for this Bill

Sponsors & Cosponsors

Sponsor

  • Jen Kiggans - to resign 12/31

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Continued from last session

    7/21/2026House

  2. Continued to 2027 in Finance (Voice Vote)

    2/11/2026House

  3. Subcommittee recommends continuing to 2028 (Voice Vote)

    2/9/2026House

  4. Fiscal Impact statement From TAX (2/8/2026 9:48 pm)

    2/8/2026House

  5. Assigned HFIN sub: Subcommittee #3

    2/5/2026House

  6. Referred to Committee on Finance

    1/14/2026House

  7. Prefiled and ordered printed; Offered 01-14-2026 26105169D

    1/14/2026House

Bill Text

Related Bills

Back to State Legislation