Self-employed taxes and LLC costs in Virginia, 2026
Virginia reaches its top income tax rate at only $17,000 of taxable income, so nearly every full-time freelancer pays it on most of their profit.
Total tax on this income in 2026
$21,528
Put aside 25% of each payment · $5,382 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| Virginia income tax | $3,728 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 25.3% |
With an S corp election and a $34,000 salary, about $3,669 less tax (check it).
Computed by Radif Partners from IRS and Virginia agency documents read on October 15, 2026 · How we calculate
Virginia's income tax has four brackets with very low thresholds: 2 %, 3 %, 5 %, then 5.75 % on taxable income above $17,000, the same thresholds for single and joint returns. After a $8,750 standard deduction and a $930 personal exemption, a single freelancer with $75,000 of profit owes about $3,194 to Virginia and $18,689 in all with federal income tax and self-employment tax. Two 2026 changes affect cash flow: estimated payments are now required only when you expect to owe more than $1,000, up from $150, and the first installment is due May 1. An LLC costs $100 to form and $50 a year in registration fees, with no franchise tax. Many cities and counties add a BPOL license tax on gross receipts. Virginia follows the S election, which saves about $5,156 at $120,000 of profit and a $50,000 salary.
Virginia at a glance, 2026
| LLC filing fee | $100 |
| Annual registration fee (no separate annual report form) | $50 a year |
| Income tax | 2 % to 5.75 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $18,689 in all, $3,194 to Virginia |
Two dates on the Virginia calendar differ from the federal one. The 2026 Form 760ES puts the first estimated payment on May 1, two weeks after the IRS, and lifts the threshold for paying estimates at all to more than $1,000 of expected tax after withholding and credits. A part-time freelancer who used to send small vouchers may no longer need to. The other three installments land on June 15, September 15 and January 15, as on the federal calendar.
A top rate that starts early
The 5.75 % rate applies from $17,000 of taxable income, a threshold that does not follow inflation in the 2026 schedule. In practice Virginia works almost like a flat tax for anyone with a real business: the lower brackets save a fixed amount, and everything above is taxed at the top rate. Married couples get no wider brackets either; a couple filing jointly on $130,000 of profit owes about $5,576. The standard deduction stays at $8,750 single for 2026 and rises to $9,200 in 2027 under Va. Code § 58.1-322.03.
State income tax on a freelance profit
Virginia income tax
$3,995
| State share of profit | 4.4% |
| Total with federal | $23,311 |
BPOL: the license tax counted on receipts
Virginia lets its counties, cities and towns levy a Business, Professional and Occupational License tax on gross receipts, not profit. Each locality sets its own rate within limits; state law caps the rate for financial, real estate and professional services at 0.58%, with lower ceilings for other trades. Under Va. Code § 58.1-3706, larger localities tax freelancers' receipts only above $100,000. Check with the commissioner of the revenue where you work: a home-based consultant still needs the local license. The local business taxes page explains how these receipts taxes differ from income taxes.
LLCs and S corporations
A Virginia LLC is organized with the State Corporation Commission for $100, then pays an annual registration fee of $50 by last day of the anniversary month of formation (each year after the month organized). There is no franchise tax and no separate report form, per Va. Code § 13.1-1062. Five years of fees come to $350.
The pass-through entity tax
Partnerships and S corporations can elect each year, on a timely Form 502, to pay Virginia tax at 5.75 % on their Virginia taxable income, as Va. Code § 58.1-390.3 allows; the text in force carries no end date. The owners then claim a credit on their own returns. A sole proprietor or single-member LLC cannot elect. The S election itself is followed by Virginia, and the LLC vs S corp page shows how payroll costs eat into the saving.
Virginia income tax brackets
| Taxable income, single | Rate | Taxable income, joint | Rate |
|---|---|---|---|
| $0 to $3,000 | 2 % | $0 to $3,000 | 2 % |
| $3,000 to $5,000 | 3 % | $3,000 to $5,000 | 3 % |
| $5,000 to $17,000 | 5 % | $5,000 to $17,000 | 5 % |
| over $17,000 | 5.75 % | over $17,000 | 5.75 % |
City and county taxes on business income in Virginia
| Place | Tax | Rate | Who pays |
|---|---|---|---|
| Virginia counties, cities and towns (varies) | BPOL business license tax on gross receipts | 0.58% | no license tax on gross receipts under $100,000 in localities over 50,000 people, or under $50,000 in localities of 25,000-50,000 (a flat license fee may still apply) |