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Education Savings Bond Interest Exclusion in Norfolk, VA 2026

Calculate your education savings bond interest exclusion tax savings in Norfolk, Virginia. With Virginia's 5.75% state tax rate, your combined savings are higher.

Virginia Tax Context

State Income Tax
5.75%
Local Income Tax
None
Property Tax Rate
0.98%
Tax Burden
Low

Naval Station Norfolk; lower home prices

$1,388
Est. Total Savings
No Limit
Max Deduction
Above-the-Line
Deduction Type
27.8%
Combined Tax Rate

Education Savings Bond Interest Exclusion Savings Calculator for Norfolk

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Federal Savings

$1,100

22% bracket

Virginia State

$288

5.75% rate

Local Tax

$0

0% rate

Total Savings

$1,388

27.8% combined

At a 27.8% combined tax rate in Norfolk, every $1,000 in deductions saves you $278 in taxes.

Savings by Tax Bracket in Norfolk

10%
$788
12%
$888
22%
$1,388
24%
$1,488
32%
$1,888
35%
$2,038
37%
$2,138

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

Eligibility Requirements

Taxpayers who cash Series EE or I bonds for qualified education expenses

  • 1Bonds must be Series EE or I issued after 1989
  • 2Owner must be at least 24 when bond was issued
  • 3Used for qualified higher education expenses
  • 4Income phase-outs apply

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

  • !Buying bonds in child's name instead of parent's
  • !Not meeting the age requirement at issuance
  • !Exceeding income limits for the exclusion
  • !Forgetting to claim the deduction on your Virginia state return (missing 5.75% additional savings)

Required Tax Forms

Form 8815Form 1040

File these forms with your federal tax return to claim the education savings bond interest exclusion. Virginia may require additional state-specific forms.

Other Tax Deductions in Norfolk, VA

Student Loan Interest Deduction

Education

~$694
est. savings

American Opportunity Tax Credit

Education

~$2,200
est. savings

Lifetime Learning Credit

Education

~$1,500
est. savings

529 Plan Contributions

Education

~$1,261
est. savings

Coverdell Education Savings Account

Education

~$378
est. savings

Educator Expense Deduction

Education

~$83
est. savings

Employer-Required Education

Education

~$3,784
est. savings

Education Savings Bond Interest

Education

~$631
est. savings

Education Savings Bond Interest Exclusion in Other Virginia Cities

Virginia Beach, VA

5.75% state tax

~$631
-757 vs Norfolk

Chesapeake, VA

5.75% state tax

~$631
-757 vs Norfolk

Arlington, VA

5.75% state tax

~$631
-757 vs Norfolk

Richmond, VA

5.75% state tax

~$631
-757 vs Norfolk

Newport News, VA

5.75% state tax

~$631
-757 vs Norfolk

Alexandria, VA

5.75% state tax

~$631
-757 vs Norfolk

Hampton, VA

5.75% state tax

~$631
-757 vs Norfolk

Roanoke, VA

5.75% state tax

~$631
-757 vs Norfolk

Calculate Your Full Tax Savings in Norfolk

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

Income Tax CalculatorTaxes in NorfolkFull Education Savings Bond Interest Exclusion Guide

Frequently Asked Questions

How much can I save with the Education Savings Bond Interest Exclusion in Norfolk, VA?

In Norfolk, Virginia, the education savings bond interest exclusion can save you an estimated $1,388 per year. This includes $1,100 in federal tax savings and $288 in Virginia state tax savings. The national average savings is $500/year.

What is the Virginia state income tax rate for Norfolk residents?

Virginia has a 5.75% state income tax rate. Norfolk residents have no additional local income tax. Naval Station Norfolk; lower home prices

Who qualifies for the Education Savings Bond Interest Exclusion in Norfolk?

Taxpayers who cash Series EE or I bonds for qualified education expenses. The eligibility requirements are the same whether you live in Norfolk or elsewhere in the U.S., as this is a federal tax deduction. However, your savings amount will vary based on Virginia's 5.75% state tax rate.

What tax forms do I need to claim the Education Savings Bond Interest Exclusion in Virginia?

To claim the education savings bond interest exclusion, you need to file Form 8815 and Form 1040 with your federal return. Virginia residents should also check if the state allows this deduction on their state return, which could provide an additional 5.75% savings. Filing status affects your deduction limits and tax bracket.

Is the Education Savings Bond Interest Exclusion better in Norfolk than in states without income tax?

Yes, Norfolk residents benefit more because Virginia's 5.75% state income tax 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.

Related Calculators

Student Loan Interest Deduction in Norfolk

Avg savings: $550/year

American Opportunity Tax Credit in Norfolk

Avg savings: $2,200/year

Lifetime Learning Credit in Norfolk

Avg savings: $1,500/year

529 Plan Contributions in Norfolk

Avg savings: $1,000/year

Coverdell Education Savings Account in Norfolk

Avg savings: $300/year

Educator Expense Deduction in Norfolk

Avg savings: $66/year