# Virginia HB1074: State taxation; numerous changes to the Commonwealth's tax structure. Virginia HB1074, State taxation; numerous changes to the Commonwealth's tax structure., is a 2027 Regular Session House bill sponsored by Phil M. Hernandez (Democratic); status in committee, last action 2026-07-21 (Continued from last session) (as of 2026-10-11). - Canonical: https://policyrisk.com/state-bill/VA-HB1074-2027 - As of: 2026-10-11 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Virginia HB1074 - State: Virginia - Session: 2027 Regular Session - Title: State taxation; numerous changes to the Commonwealth's tax structure. - Status: in committee - Chamber: House - Introduced: 2026-01-14 - Last action: 2026-07-21, Continued from last session - Sponsor: Phil M. Hernandez (Democratic) - Cosponsors: 0 - Subjects: Subcommittee #3 - Touches household money: no - Economic provisions PRIA read: 0 ## 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. ## Bill overview No economic impacts identified for this bill. ## Sponsors and cosponsors - Sponsor: Phil M. Hernandez (Democratic), House ## Actions (7) - 2026-07-21: Continued from last session (House) - 2026-02-11: Continued to 2027 in Finance (Voice Vote) (House) - 2026-02-09: Subcommittee recommends continuing to 2028 (Voice Vote) (House) - 2026-02-08: Fiscal Impact statement From TAX (2/8/2026 9:48 pm) (House) - 2026-02-05: Assigned HFIN sub: Subcommittee #3 (House) - 2026-01-14: Referred to Committee on Finance (House) - 2026-01-14: Prefiled and ordered printed; Offered 01-14-2026 26105169D (House) ## Bill text - Introduced, 2026-01-14: [HTML](https://lis.blob.core.windows.net/files/1231409.HTML), [PDF](https://lis.blob.core.windows.net/files/1231408.PDF) ## Related bills - SB844: Licensed clinical psychologists; prescriptive authority; report. (in committee) - HB1535: Individuals with developmental or intellectual disabilities; admissibility of statements. (introduced) - HB1534: School service providers; deletion of student and family personal information. (introduced) - SB843: Data centers; state permitting, local approval, moratorium, sunset. (in committee) - SB842: High school student athletes; eligibility, enrollment. (in committee) - SB840: Corrections, Director of the Department of; placement of inmates, Red Onion State Prison. (in committee) ## Sources - [Introduced (HTML)](https://lis.blob.core.windows.net/files/1231409.HTML) - [Introduced (PDF)](https://lis.blob.core.windows.net/files/1231408.PDF) ## Related - [SB844: Licensed clinical psychologists; prescriptive authority; report.](https://policyrisk.com/state-bill/VA-SB844-2027) - [HB1535: Individuals with developmental or intellectual disabilities; admissibility of s…](https://policyrisk.com/state-bill/VA-HB1535-2027) - [HB1534: School service providers; deletion of student and family personal information.](https://policyrisk.com/state-bill/VA-HB1534-2027) - [SB843: Data centers; state permitting, local approval, moratorium, sunset.](https://policyrisk.com/state-bill/VA-SB843-2027) - [SB842: High school student athletes; eligibility, enrollment.](https://policyrisk.com/state-bill/VA-SB842-2027) - [SB840: Corrections, Director of the Department of; placement of inmates, Red Onion Sta…](https://policyrisk.com/state-bill/VA-SB840-2027) - [Virginia bills](https://policyrisk.com/states/virginia/bills) - [Virginia state hub](https://policyrisk.com/states/virginia) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/VA-HB1074-2027 (as of 2026-10-11).