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Home Energy Tax Credit in Virginia 2026

Calculate your home energy tax credit tax savings in Virginia. With Virginia's 5.75% top state tax rate, your combined savings are higher.

Virginia Tax Overview

State Income Tax
5.75%
progressive
Sales Tax
5.3%
avg combined: 5.75%
Property Tax Rate
0.82%
Median Income
$87,249

Four brackets 2%-5.75%. Top rate at just $17K. Own standard deduction. High median income.

Virginia Income Tax Brackets (Single)

2%
$0 - $3,000
3%
$3,000 - $5,000
5%
$5,000 - $17,000
5.75%
$17,000 +
Your bracket
$3,200
Est. Total Savings
$3,200
Max Deduction
Tax Credit
Deduction Type
27.8%
Combined Tax Rate

Home Energy Tax Credit Savings Calculator for Virginia

$
$

Federal Savings

$3,200

22% bracket

Virginia State

$0

5.75% rate

Total Savings

$3,200

27.8% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Virginia

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 5.75% Virginia state tax on top of federal savings.

Eligibility Requirements

Homeowners who install energy-efficient improvements

  • 1Must be primary residence
  • 2Qualifying improvements only
  • 3Keep receipts

Virginia residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 5.75%.

Common Mistakes to Avoid

  • !Claiming for rental properties
  • !Missing manufacturer certifications
  • !Forgetting to claim the deduction on your Virginia state return (missing up to 5.75% additional savings)

Virginia Filing Tips

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+.

Required Tax Forms

Form 5695

File these forms with your federal tax return to claim the home energy tax credit. Virginia may require additional state-specific forms.

Other Tax Deductions in Virginia

Mortgage Interest Deduction

Housing

~$4,415
est. savings

Property Tax Deduction

Housing

~$2,775
est. savings

Home Office Deduction

Housing

~$1,514
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$5,045
est. savings

PMI Premium Deduction

Housing

~$1,388
est. savings

Mortgage Points Deduction

Housing

~$2,523
est. savings

Casualty & Theft Loss Deduction

Housing

~$6,307
est. savings

Home Energy Tax Credit in Neighboring States

Maryland

5.75% top rate (progressive)

~$1,800
-1,400 vs Virginia

District of Columbia

10.75% top rate (progressive)

~$1,800
-1,400 vs Virginia

West Virginia

5.12% top rate (progressive)

~$1,800
-1,400 vs Virginia

Kentucky

4% top rate (flat)

~$1,800
-1,400 vs Virginia

Tennessee

No state income tax

~$1,800
-1,400 vs Virginia

North Carolina

4.5% top rate (flat)

~$1,800
-1,400 vs Virginia

Tax Calculators for Virginia Cities

Virginia BeachChesapeakeArlingtonNorfolkRichmondNewport NewsAlexandriaHamptonRoanokeSuffolk

Calculate Your Full Tax Savings in Virginia

Use our free tax calculators to optimize your entire tax return for Virginia.

Income Tax CalculatorVirginia Income TaxFull Home Energy Tax Credit Guide

Frequently Asked Questions

How much can I save with the Home Energy Tax Credit in Virginia?

In Virginia, the home energy tax credit can save you an estimated $3,200 per year on a $5,000 deduction. This includes $3,200 in federal tax savings and $0 in Virginia state tax savings at the 5.75% marginal rate. The national average savings is $1,800/year.

What is the Virginia state income tax rate?

Virginia has a progressive income tax system with a top rate of 5.75%. Four brackets 2%-5.75%. Top rate at just $17K. Own standard deduction. High median income.

Who qualifies for the Home Energy Tax Credit in Virginia?

Homeowners who install energy-efficient improvements. The eligibility requirements are the same whether you live in Virginia or another state, as this is a federal tax credit. However, your total savings will vary based on Virginia's 5.75% top state tax rate.

What tax forms do I need to claim the Home Energy Tax Credit in Virginia?

To claim the home energy tax credit, you need to file Form 5695 with your federal return. Virginia residents should also check if the state allows this deduction on their state return for additional savings of up to 5.75%. Filing status affects your deduction limits and tax bracket.

Is the Home Energy Tax Credit better in Virginia than in states without income tax?

Yes, Virginia residents benefit more because the state's 5.75% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 27.8% means more savings per dollar deducted.

What is the standard deduction in Virginia for 2026?

Virginia's standard deduction is $8,000 for single filers and $16,000 for married filing jointly. 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+.

Related Calculators

Mortgage Interest Deduction in Virginia

Avg savings: $3,500/year

Property Tax Deduction in Virginia

Avg savings: $2,200/year

Home Office Deduction in Virginia

Avg savings: $1,200/year

Residential Solar Tax Credit in Virginia

Avg savings: $7,500/year

Military Moving Expenses in Virginia

Avg savings: $4,000/year

PMI Premium Deduction in Virginia

Avg savings: $1,100/year