# Virginia HB865: Income tax, state; establishes a new tax bracket beginning on and after January 1, 2024.

Virginia HB865, Income tax, state; establishes a new tax bracket beginning on and after January 1, 2024., is a 2025 Regular Session House bill sponsored by Phil M. Hernandez (Democratic); status failed, last action 2024-11-18 (Left in Finance) (as of 2026-10-16).

- Canonical: https://policyrisk.com/state-bill/VA-HB865-2025
- As of: 2026-10-16
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia HB865
- State: Virginia
- Session: 2025 Regular Session
- Title: Income tax, state; establishes a new tax bracket beginning on and after January 1, 2024.
- Status: failed
- Chamber: House
- Introduced: 2024-01-09
- Last action: 2024-11-18, Left in Finance
- Sponsor: Phil M. Hernandez (Democratic)
- Cosponsors: 0
- Subjects: Finance
- Touches household money: no
- Roll calls: 2 (7 yes, 0 no in all)
- Economic provisions PRIA read: 0

## Summary

Imposition of income tax. Establishes a new income tax bracket beginning on and after January 1, 2024, that taxes income in excess of $1 million at a rate of 10 percent. The bill provides that 50 percent of revenues generated by the new tax bracket will be dedicated to providing additional basic aid funding for public schools, 30 percent of such revenues will be dedicated to the Child Care Subsidy Program, and 20 percent of such revenues will be dedicated to the Virginia Housing Trust Fund.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Phil M. Hernandez (Democratic), House

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2024-02-07 | House | Continued to 2025 in Finance (Voice Vote) | pass | 0 | 0 |   |
| 2024-02-05 | House | Subcommittee recommends continuing to 2025 | pass | 7 | 0 |   |

## Actions (7)

- 2024-11-18: Left in Finance (House)
- 2024-02-07: Continued to 2025 in Finance (Voice Vote) (House)
- 2024-02-05: Subcommittee recommends continuing to 2025 (7-Y 0-N) (House)
- 2024-02-02: Assigned Finance sub: Subcommittee #3 (House)
- 2024-02-02: Impact statement from TAX (HB865) (House)
- 2024-01-09: Referred to Committee on Finance (House)
- 2024-01-09: Prefiled and ordered printed; offered 01/10/24 24103047D (House)

## Bill text

- Introduced, 2024-02-09: [HTML](https://lis.virginia.gov/bill-details/20251/HB865)

## Related bills

- HR671: Commending JR's Auto Care. (adopted)
- SB941: Robbery; use of air or gas operated weapon, etc., penalty. (failed)
- HB1746: Public safety officer; definition. (failed)
- HB1600: Budget Bill. (failed)
- SB1449: Data centers; site assessment for high energy use facility. (failed)
- HB1609: Essential health benefits benchmark plan; Commission to consider coverage for infertility treatment. (to governor)

## Sources
- [Introduced (HTML)](https://lis.virginia.gov/bill-details/20251/HB865)

## Related
- [HR671: Commending JR's Auto Care.](https://policyrisk.com/state-bill/VA-HR671-2025)
- [SB941: Robbery; use of air or gas operated weapon, etc., penalty.](https://policyrisk.com/state-bill/VA-SB941-2025)
- [HB1746: Public safety officer; definition.](https://policyrisk.com/state-bill/VA-HB1746-2025)
- [HB1600: Budget Bill.](https://policyrisk.com/state-bill/VA-HB1600-2025)
- [SB1449: Data centers; site assessment for high energy use facility.](https://policyrisk.com/state-bill/VA-SB1449-2025)
- [HB1609: Essential health benefits benchmark plan; Commission to consider coverage for i…](https://policyrisk.com/state-bill/VA-HB1609-2025)
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Source: PRIA, https://policyrisk.com/state-bill/VA-HB865-2025 (as of 2026-10-16).