Virginia’s income tax tops out at 5.75%, which applies to almost all of a freelancer’s income. Two things make Virginia different: the first estimated payment is due May 1, and many localities charge a license tax on gross receipts.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit |
| Federal income tax | 10%–37% |
| Virginia income tax | 2%–5.75% (5.75% above $17,000 of taxable income) |
| Local BPOL license tax | Set locally, on gross receipts |
Virginia income tax
Virginia taxes the first $3,000 of taxable income at 2%, the next $2,000 at 3%, the next $12,000 at 5%, and everything above $17,000 at 5.75%. For 2026 the standard deduction is $8,750 for single filers and $17,500 for married couples filing jointly.
Estimated payments — note the May 1 date
- Starting with 2026, you need to make estimated payments only if you expect to owe more than $1,000 (the old threshold was $150).
- Payments use Form 760ES. The first installment is due May 1, 2026 — not April 15 — then June 15, September 15, 2026, and January 15, 2027 (per the 2026 draft form).
Size the federal part with the quarterly estimated tax calculator.
BPOL: the local license tax
Many Virginia counties, cities and towns impose a Business, Professional and Occupational License (BPOL) tax. It is charged on gross receipts — without deducting expenses — for businesses with a definite place of business in the locality, which can include a home office. Each locality sets its own rates, thresholds and filing dates (often around March 1). Check with your locality’s commissioner of the revenue.
If you have an LLC
Virginia LLCs pay a $50 annual registration fee to the State Corporation Commission; paying late adds a $25 penalty.
How much to set aside
Enter 5.75 in the state field of the tax set-aside calculator, and budget separately for any BPOL tax your locality charges.