If you are a resident or nonresident of Virginia and receive taxable income individually from property owned or business transacted in Virginia, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company (LLC), or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you. In addition, qualified areas in Virginia are authorized to levy a local income tax, so be sure to check with your local government.
The following marginal tax rates and income brackets apply for the 2009 tax year:
| Taxable Income |
Marginal Tax Rate |
| Up to $3,000 |
2% |
| Over $3,000, but not over $5,000 |
$60 plus 3% of excess over $3,000 |
| Over $5,000, but not over $17,000 |
$120 plus 5% of excess over $5,000 |
| Over $17,000 |
$720 plus 5.75% of excess over $17,000 |