Effective for wages paid on or after October 1, 2022, Virginia Tax (VT) has issued revised withholding tables that include an updated formula and updated wage bracket withholding tables. The supplemental wage tax rate remains 5.75%.
The revised withholding tables include increases in the standard deduction for single filers (to $8,000 from $4,500) and joint filers (to $16,000 from $9,000). The increase for tax year 2022 is contingent on annual revenue growth of at least 5% for the six-month period of July through December 2022. The increase for tax year 2023 is contingent on annual revenue growth of at least 5% for the 12-month period of July 2022 through June 2023. If the 5% growth rate is not met for either taxable year, the standard deduction will be $7,500 for single filers and $15,000 for joint filers (see VT Income Tax Withholding Guide for Employers, rev. 8-22).
Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.
Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for the APA.