Virginia · Capital Loss Deduction
Capital Loss Deduction in Virginia (2026)
Deduct up to $3,000 of net capital losses against ordinary income per year. Virginia has a progressive income tax with a top rate of 5.75%, so a Virginia filer's combined marginal rate on the next dollar at $87,249 of income is about 27.75% (22% federal + 5.75% VA).
2026 savings example for Virginia
Planning estimate for a single filer earning $87,249 (Virginia median household income in LevyIO's state dataset) who removes $3,000 from taxable income. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; VA tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$833
Federal savings
$660
$10,365 → $9,705 · 22% bracket
VA state savings
$173
$4,299 → $4,127 · 5.75% marginal
Combined marginal rate
27.75%
≈ $278 saved per $1,000 deducted
Statutory maximum for this item in LevyIO's dataset: $3,000.
Federal × Virginia marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The VA column is the state marginal rate at the midpoint of each range. The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | VA marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 5% | 15% | $150 |
| 12% | $28,500 - $66,500 | 5.75% | 17.75% | $178 |
| 22% | $66,500 - $121,800 | 5.75% | 27.75% | $278 |
| 24% | $121,800 - $217,875 | 5.75% | 29.75% | $298 |
| 32% | $217,875 - $272,325 | 5.75% | 37.75% | $378 |
| 35% | $272,325 - $656,700 | 5.75% | 40.75% | $408 |
| 37% | Over $656,700 | 5.75% | 42.75% | $428 |
Eligibility & forms
Investors with net capital losses
- $3,000 max per year
- Excess carries forward
- Short-term first
Federal forms: Schedule D, Form 8949
Virginia filing notes
The 5.75% top rate starts at just $17K, so most earners pay the top rate. State standard deduction ($8,000) is lower than federal. Age deduction up to $12,000 for 65+.
Common mistakes: Not tracking carryforward; Wash sale violations.
Frequently asked questions
How much can the Capital Loss Deduction save a Virginia taxpayer in 2026?
In LevyIO's example, a single filer with $87,249 of income (the Virginia median household income in our state dataset) who removes $3,000 from taxable income saves about $660 in 2026 federal tax (22% marginal bracket) plus about $173 in Virginia tax (5.75% state marginal rate), roughly $833 combined. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's VA bracket data, not a survey figure.
What is the Virginia income tax rate for 2026?
Virginia has a progressive income tax with a top rate of 5.75%. The VA standard deduction in LevyIO's dataset is $8,000 single / $16,000 married. Four brackets 2%-5.75%. Top rate at just $17K. Own standard deduction. High median income.
Who qualifies for the Capital Loss Deduction in Virginia?
Investors with net capital losses. The federal rules are the same in every state; the requirements are: $3,000 max per year; Excess carries forward; Short-term first. Virginia filers should confirm on the VA return whether the state follows the federal treatment.
Which forms do I file to claim the Capital Loss Deduction?
Federal: Schedule D, Form 8949. Virginia: check the Virginia Department of Taxation instructions for the matching state schedule. Common mistakes: Not tracking carryforward; Wash sale violations.
Capital Loss Deduction in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.