Virginia Payroll Compliance
Every rate, wage base, and threshold Virginia employers need for 2026 — sourced from Virginia Tax and the Virginia Employment Commission — including the standard deduction increase set to expire and the state's brand-new paid leave law.
Minimum Wage & Hours
Virginia’s minimum wage rose to $12.77/hour on January 1, 2026, a 2.9% CPI adjustment. Virginia has no state overtime statute of its own — federal FLSA rules apply directly.
| Item | 2026 Value | Notes |
|---|---|---|
| Statewide minimum wage | $12.77/hr | +2.9% CPI adjustment from 2025 |
| Overtime rule | 40 hrs/week | Federal FLSA governs directly; no separate state statute |
| Local wage ordinances | None | No Virginia locality sets its own minimum wage |
| New hire reporting | Within 20 days | To the Virginia New Hire Reporting Center |
State Income Tax Withholding
Virginia uses four brackets from 2.0% to 5.75%, but the top bracket starts at just $17,000 of taxable income — meaning most Virginia workers pay the top marginal rate on the majority of their earnings. A temporarily increased standard deduction is scheduled to expire after 2026.
| Item | 2026 Value | Notes |
|---|---|---|
| Bracket range | 2.0% – 5.75% | 4 brackets; top rate begins at just $17,000 taxable income |
| Standard deduction (2026) | $8,750 / $17,500 | Single / married filing jointly; temporarily increased |
| Standard deduction (2027+) | $3,000 / $6,000 | Scheduled to revert to pre-2019 levels after Taxable Year 2026 |
| Personal exemption | $930 per exemption | Claimed via Form VA-4 |
| Required certificate | Form VA-4 | Personal exemptions similar to the VA tax return |
| Reciprocity | DC, KY, MD, PA, WV | Residents of these jurisdictions may be exempt from VA withholding |
| Annual reconciliation | Form VA-6 / VA-6H | Due January 31, with W-2/1099 wage statements |
Paid Family & Medical Leave
Virginia became the first Southern state to enact paid family and medical leave when the General Assembly passed PFML in 2026. The program is a long runway away from taking effect — contributions don't begin until 2028.
| Item | Value | Notes |
|---|---|---|
| Enactment | 2026 | First Southern state with a PFML law |
| Contributions begin | 2028 | Premium collection has not started as of 2026 |
| Benefits begin | December 2028 | Shortly after contributions begin |
| Leave duration (planned) | Up to 12 weeks | Serious health conditions, bonding, caregiving, military leave |
| Small-employer relief | 10 or fewer employees | Exempt from employer share; must still withhold employee's 50% share |
| Coverage | Nearly all private employers | Including household employers |
Unemployment Insurance (SUI)
Virginia's SUI wage base has held at $8,000 for years. A new administrative fee, added January 1, 2025, remains in effect for 2026 on top of the standard UI tax.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $8,000 | Generally unchanged year over year |
| New employer rate | 2.5% | Base rate for most new employers |
| Experienced employer range | 0.1% – 6.2% | Based on claims history |
| Foreign contractor rate | 6.2% | Fixed for a minimum of 3 calendar years |
| UI administrative fee | 0.05% | New as of Jan 1, 2025; applies alongside the standard SUI tax |
| Filing | Forms VEC-FC-20/21 | Quarterly, filed with the Virginia Employment Commission |
Official Virginia .gov Resources
Verify every figure and register for accounts at the source. These are the agencies Virginia employers work with for payroll.