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Student Loan Forgiveness Tax Exclusion in Arlington, VA 2026

Calculate your student loan forgiveness tax exclusion tax savings in Arlington, 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
0.99%
Tax Burden
Very High

Pentagon; Amazon HQ2; DC suburb with very high incomes

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

Student Loan Forgiveness Tax Exclusion Savings Calculator for Arlington

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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 Arlington, every $1,000 in deductions saves you $278 in taxes.

Savings by Tax Bracket in Arlington

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

Borrowers with student loans forgiven through 2025

  • 1Loan forgiveness through 12/31/2025 is tax-free
  • 2Applies to federal and private student loan forgiveness
  • 3Includes income-driven repayment plan forgiveness

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

  • !Not knowing forgiveness may be taxable after 2025
  • !Confusing PSLF (always tax-free) with other programs
  • !Not planning for potential state tax on forgiveness
  • !Forgetting to claim the deduction on your Virginia state return (missing 5.75% additional savings)

Required Tax Forms

Form 1099-CForm 1040

File these forms with your federal tax return to claim the student loan forgiveness tax exclusion. Virginia may require additional state-specific forms.

Other Tax Deductions in Arlington, 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

Student Loan Forgiveness Tax Exclusion in Other Virginia Cities

Virginia Beach, VA

5.75% state tax

~$6,307
+4,919 vs Arlington

Chesapeake, VA

5.75% state tax

~$6,307
+4,919 vs Arlington

Norfolk, VA

5.75% state tax

~$6,307
+4,919 vs Arlington

Richmond, VA

5.75% state tax

~$6,307
+4,919 vs Arlington

Newport News, VA

5.75% state tax

~$6,307
+4,919 vs Arlington

Alexandria, VA

5.75% state tax

~$6,307
+4,919 vs Arlington

Hampton, VA

5.75% state tax

~$6,307
+4,919 vs Arlington

Roanoke, VA

5.75% state tax

~$6,307
+4,919 vs Arlington

Calculate Your Full Tax Savings in Arlington

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

Income Tax CalculatorTaxes in ArlingtonFull Student Loan Forgiveness Tax Exclusion Guide

Frequently Asked Questions

How much can I save with the Student Loan Forgiveness Tax Exclusion in Arlington, VA?

In Arlington, Virginia, the student loan forgiveness tax 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 $5,000/year.

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

Virginia has a 5.75% state income tax rate. Arlington residents have no additional local income tax. Pentagon; Amazon HQ2; DC suburb with very high incomes

Who qualifies for the Student Loan Forgiveness Tax Exclusion in Arlington?

Borrowers with student loans forgiven through 2025. The eligibility requirements are the same whether you live in Arlington 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 Student Loan Forgiveness Tax Exclusion in Virginia?

To claim the student loan forgiveness tax exclusion, you need to file Form 1099-C 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 Student Loan Forgiveness Tax Exclusion better in Arlington than in states without income tax?

Yes, Arlington 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 Arlington

Avg savings: $550/year

American Opportunity Tax Credit in Arlington

Avg savings: $2,200/year

Lifetime Learning Credit in Arlington

Avg savings: $1,500/year

529 Plan Contributions in Arlington

Avg savings: $1,000/year

Coverdell Education Savings Account in Arlington

Avg savings: $300/year

Educator Expense Deduction in Arlington

Avg savings: $66/year