Virginia has the Seventh Lowest Tax Burden in the Nation for 2013

Mar 10, 2015

In Fiscal Year (FY) 2013, Virginia collected $34.4 billion in state and local taxes. While this is an impressive sum of money, it tells us little about whether or not the average Virginia taxpayer can afford this level of taxation.

As shown in Chart 1, Virginia’s state and local tax burden (tax collections divided by personal income) was the 7^th lowest in the nation for FY 2013 at 8.6 percent—this is -17 percent below the national average of 10.3 percent. As shown in Chart 2, the tax burden has grown over time by 41 percent to 8.6 percent in FY 2013 from 6.1 percent in FY 1950.

Virginia State and Local Tax Burden Rank 2013.jpg

Virginia’s low tax burden is not driven by any particular element in their tax code. While Virginia’s individual income tax burden in high relative to the national average (2.7 percent, 16^th highest in the country), it is more than offset by a low sales tax burden (1.2 percent, 45^th highest in the country). The remaining taxes (property, corporate income, and all other) are all below average.

#Virginia #taxburden has grown 41 percent between FY 1950 to 2013 to 8.6% from 6.1%. (click to tweet)

Of course, the tax burdens for local government can vary just as much as they do among the 50 states. As such, we have also calculated the local government tax burden for every county in Virginia—this includes every taxing jurisdiction within the geographic county borders whether it is a city, a special district, or county government itself.

The Virginia counties with the highest local government tax burden include: Surry County, VA (8.5 percent), Bath County, VA (6.7 percent), and Buchanan County, VA (5.8 percent). The Virginia counties with the lowest local government tax burden include: Amelia County, VA (1.8 percent), Lee County, VA (1.9 percent), and Nottoway County, VA (1.9 percent).

Click here to view tax burden data by state, type of tax, and for years 1950 to 2013.

Virginia State and Local Tax Burden 1950 to 2013.jpg

J. Scott Moody

Scott has nearly 20 years of experience as a public policy economist. He is the author, co-author and editor of over 180 studies and books. His professional experience also includes positions at the American Conservative Union Foundation, Granite Institute, Federalism In Action, Maine Heritage Policy Center, Tax Foundation, and Heritage Foundation.