{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-322.03.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-322.03.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-322.03.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-322.03.html"}],"law_id":79461,"edition_id":1,"section_id":79461,"structure_id":15071,"section_number":"58.1-322.03","catch_line":"Virginia taxable income; deductions","history":"2017, c. 444; 2019, cc. 17, 18; 2021, Sp. Sess. I, cc. 117, 118, 552; 2022, cc. 3, 19, 648; 2022, Sp. Sess. I, cc. 1, 6; 2023, Sp. Sess. I, c. 1; 2024, c. 217; 2025, cc. 615, 658, 725.","full_text":"In computing Virginia taxable income pursuant to \u00a7 58.1-322, there shall be deducted from Virginia adjusted gross income as defined in \u00a7 58.1-321:\n\n1\n\na. The amount allowable for itemized deductions for federal income tax purposes where the taxpayer has elected for the taxable year to itemize deductions on his federal return, but reduced by the amount of income taxes imposed by the Commonwealth or any other taxing jurisdiction and deducted on such federal return and increased by an amount that, when added to the amount deducted under § 170 of the Internal Revenue Code for mileage, results in a mileage deduction at the state level for such purposes at a rate of 18 cents per mile; or\n\t\t\tb. Provided that the taxpayer has not itemized deductions for the taxable year on his federal income tax return: (i) for taxable years beginning before January 1, 2019, and on and after January 1, 2027 $3,000 for single individuals and $6,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return); (ii) for taxable years beginning on and after January 1, 2019, but before January 1, 2022, $4,500 for single individuals and $9,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return); (iii) for taxable years beginning on and after January 1, 2022, but before January 1, 2024, $8,000 for single individuals and $16,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return); (iv) for taxable years beginning on and after January 1, 2024, but before January 1, 2025, $8,500 for single individuals and $17,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return); and (v) for taxable years beginning on and after January 1, 2025, but before January 1, 2027, $8,750 for single individuals and $17,500 for married persons (one-half of such amounts in the case of a married individual filing a separate return). For purposes of this section, any person who may be claimed as a dependent on another taxpayer’s return for the taxable year may compute the deduction only with respect to earned income.2\n\na. A deduction in the amount of $930 for each personal exemption allowable to the taxpayer for federal income tax purposes.\n\t\t\tb. Each blind or aged taxpayer as defined under § 63(f) of the Internal Revenue Code shall be entitled to an additional personal exemption in the amount of $800.\n\t\t\tThe additional deduction for blind or aged taxpayers allowed under this subdivision shall be allowable regardless of whether the taxpayer itemizes deductions for the taxable year for federal income tax purposes.3\n\nA deduction equal to the amount of employment-related expenses upon which the federal credit is based under § 21 of the Internal Revenue Code for expenses for household and dependent care services necessary for gainful employment.4\n\nAn additional $1,000 deduction for each child residing for the entire taxable year in a home under permanent foster care placement as defined in § 63.2-908, provided that the taxpayer can also claim the child as a personal exemption under § 151 of the Internal Revenue Code.5\n\na. A deduction in the amount of $12,000 for individuals born on or before January 1, 1939.\n\t\t\tb. A deduction in the amount of $12,000 for individuals born after January 1, 1939, who have attained the age of 65. This deduction shall be reduced by $1 for every $1 that the taxpayer’s adjusted federal adjusted gross income exceeds $50,000 for single taxpayers or $75,000 for married taxpayers. For married taxpayers filing separately, the deduction shall be reduced by $1 for every $1 that the total combined adjusted federal adjusted gross income of both spouses exceeds $75,000.\n\t\t\tFor the purposes of this subdivision, “adjusted federal adjusted gross income” means federal adjusted gross income minus any benefits received under Title II of the Social Security Act and other benefits subject to federal income taxation solely pursuant to § 86 of the Internal Revenue Code, as amended.6\n\nThe amount an individual pays as a fee for an initial screening to become a possible bone marrow donor, if (i) the individual is not reimbursed for such fee or (ii) the individual has not claimed a deduction for the payment of such fee on his federal income tax return.7\n\na. A deduction shall be allowed to the purchaser or contributor for the amount paid or contributed during the taxable year for a prepaid tuition contract or college savings trust account entered into with the Commonwealth Savers Plan, pursuant to Chapter 7 (§ 23.1-700 et seq.) of Title 23.1. Except as provided in subdivision b, the amount deducted on any individual income tax return in any taxable year shall be limited to $4,000 per prepaid tuition contract or college savings trust account. No deduction shall be allowed pursuant to this subdivision 7 if such payments or contributions are deducted on the purchaser’s or contributor’s federal income tax return. If the purchase price or annual contribution to a college savings trust account exceeds $4,000, the remainder may be carried forward and subtracted in future taxable years until the purchase price or college savings trust contribution has been fully deducted; however, except as provided in subdivision b, in no event shall the amount deducted in any taxable year exceed $4,000 per contract or college savings trust account. Notwithstanding the statute of limitations on assessments contained in § 58.1-312, any deduction taken hereunder shall be subject to recapture in the taxable year or years in which distributions or refunds are made for any reason other than (i) to pay qualified higher education expenses, as defined in § 529 of the Internal Revenue Code or (ii) the beneficiary’s death, disability, or receipt of a scholarship. For the purposes of this subdivision, “purchaser” or “contributor” means the person shown as such on the records of the Commonwealth Savers Plan as of December 31 of the taxable year. In the case of a transfer of ownership of a prepaid tuition contract or college savings trust account, the transferee shall succeed to the transferor’s tax attributes associated with a prepaid tuition contract or college savings trust account, including, but not limited to, carryover and recapture of deductions.\n\t\t\tb. A purchaser of a prepaid tuition contract or contributor to a college savings trust account who has attained age 70 shall not be subject to the limitation that the amount of the deduction not exceed $4,000 per prepaid tuition contract or college savings trust account in any taxable year. Such taxpayer shall be allowed a deduction for the full amount paid for the contract or contributed to a college savings trust account, less any amounts previously deducted.8\n\nThe total amount an individual actually contributed in funds to the Virginia Public School Construction Grants Program and Fund, established in Chapter 11.1 (§ 22.1-175.1 et seq.) of Title 22.1, provided that the individual has not claimed a deduction for such amount on his federal income tax return.9\n\nAn amount equal to 20 percent of the tuition costs incurred by an individual employed as a primary or secondary school teacher licensed pursuant to Chapter 15 (§ 22.1-289.1 et seq.) of Title 22.1 to attend continuing teacher education courses that are required as a condition of employment; however, the deduction provided by this subdivision shall be available only if (i) the individual is not reimbursed for such tuition costs and (ii) the individual has not claimed a deduction for the payment of such tuition costs on his federal income tax return.10\n\nThe amount an individual pays annually in premiums for long-term health care insurance, provided that the individual has not claimed a deduction for federal income tax purposes, or, for taxable years beginning before January 1, 2014, a credit under § 58.1-339.11. For taxable years beginning on and after January 1, 2014, no such deduction for long-term health care insurance premiums paid by the individual during the taxable year shall be allowed if the individual has claimed a federal income tax deduction for such taxable year for long-term health care insurance premiums paid by him.11\n\nContract payments to a producer of quota tobacco or a tobacco quota holder, or their spouses, as provided under the American Jobs Creation Act of 2004 (P.L. 108-357), but only to the extent that such payments have not been subtracted pursuant to subsection D of § 58.1-402, as follows:\n\t\t\ta. If the payment is received in installment payments, then the recognized gain may be subtracted in the taxable year immediately following the year in which the installment payment is received.\n\t\t\tb. If the payment is received in a single payment, then 10 percent of the recognized gain may be subtracted in the taxable year immediately following the year in which the single payment is received. The taxpayer may then deduct an equal amount in each of the nine succeeding taxable years.12\n\nAn amount equal to 20 percent of the sum paid by an individual pursuant to Chapter 6 (§ 58.1-600 et seq.), not to exceed $500 in each taxable year, in purchasing for his own use the following items of tangible personal property: (i) any clothes washers, room air conditioners, dishwashers, and standard size refrigerators that meet or exceed the applicable energy star efficiency requirements developed by the U.S. Environmental Protection Agency and the U.S. Department of Energy; (ii) any fuel cell that (a) generates electricity using an electrochemical process, (b) has an electricity-only generation efficiency greater than 35 percent, and (c) has a generating capacity of at least two kilowatts; (iii) any gas heat pump that has a coefficient of performance of at least 1.25 for heating and at least 0.70 for cooling; (iv) any electric heat pump hot water heater that yields an energy factor of at least 1.7; (v) any electric heat pump that has a heating system performance factor of at least 8.0 and a cooling seasonal energy efficiency ratio of at least 13.0; (vi) any central air conditioner that has a cooling seasonal energy efficiency ratio of at least 13.5; (vii) any advanced gas or oil water heater that has an energy factor of at least 0.65; (viii) any advanced oil-fired boiler with a minimum annual fuel-utilization rating of 85; (ix) any advanced oil-fired furnace with a minimum annual fuel-utilization rating of 85; and (x) programmable thermostats.13\n\nThe lesser of $5,000 or the amount actually paid by a living donor of an organ or other living tissue for unreimbursed out-of-pocket expenses directly related to the donation that arose within 12 months of such donation, provided that the donor has not taken a medical deduction in accordance with the provisions of § 213 of the Internal Revenue Code for such expenses. The deduction may be taken in the taxable year in which the donation is made or the taxable year in which the 12-month period expires.14\n\nFor taxable years beginning on and after January 1, 2013, the amount an individual age 66 or older with earned income of at least $20,000 for the year and federal adjusted gross income not in excess of $30,000 for the year pays annually in premiums for (i) a prepaid funeral insurance policy covering the individual or (ii) medical or dental insurance for any person for whom individual tax filers may claim a deduction for such premiums under federal income tax laws. As used in this subdivision, “earned income” means the same as that term is defined in § 32(c) of the Internal Revenue Code. The deduction shall not be allowed for any portion of such premiums paid for which the individual has (a) been reimbursed, (b) claimed a deduction for federal income tax purposes, (c) claimed a deduction or subtraction under another provision of this section, or (d) claimed a federal income tax credit or any income tax credit pursuant to this chapter.15\n\nBusiness interest disallowed as a deduction pursuant to § 163(j) of the Internal Revenue Code:\n\t\t\ta. For taxable years beginning on and after January 1, 2018, but before January 1, 2022, 20 percent of such disallowed business interest;\n\t\t\tb. For taxable years beginning on and after January 1, 2022, but before January 1, 2024, 30 percent of such disallowed business interest;\n\t\t\tc. For taxable years beginning on and after January 2, 2024, 50 percent of such disallowed business interest.\n\t\t\tFor purposes of subdivision 15, “business interest” means the same as that term is defined under § 163(j) of the Internal Revenue Code.16\n\nFor taxable years beginning on and after January 1, 2019, the actual amount of real and personal property taxes imposed by the Commonwealth or any other taxing jurisdiction not otherwise deducted solely on account of the dollar limitation imposed on individual deductions by § 164(b)(6)(B) of the Internal Revenue Code.17\n\nFor taxable years beginning before January 1, 2021, up to $100,000 of the amount that is not deductible when computing federal adjusted gross income solely on account of the portion of subdivision B 10 of § 58.1-301 related to Paycheck Protection Program loans.18\n\nFor taxable years beginning on and after January 1, 2022, but before January 1, 2025, the lesser of $500 or the actual amount paid or incurred for eligible educator qualifying expenses. For purposes of this subdivision, “eligible educator” means an individual who for at least 900 hours during the taxable year in which the credit under this section is claimed served as a teacher licensed pursuant to Chapter 15 (§ 22.1-289.1 et seq.) of Title 22.1, instructor, student counselor, principal, special needs personnel, or student aide serving accredited public or private primary and secondary school students in Virginia, and “qualifying expenses” means 100 percent of the amount paid or incurred by an eligible educator during the taxable year for participation in professional development courses and the purchase of books, supplies, computer equipment (including related software and services), other educational and teaching equipment, and supplementary materials used directly in that individual’s service to students as an eligible educator, provided that such purchases were neither reimbursed nor claimed as a deduction on the eligible educator’s federal income tax return for such taxable year.19\n\nFor taxable years beginning on and after January 1, 2026, the amount paid or cost incurred for installing a qualifying upgrade required to interconnect a triggering project. No deduction shall be allowed under this section for a taxpayer who has claimed a deduction under subsection I of § 58.1-402 for the same amount paid or cost incurred to install such qualifying upgrade.\n\t\t\tFor purposes of this subdivision, “qualifying upgrade” and “triggering project” have the same meanings as provided for those terms in § 56-596.5.","order_by":null,"text":{"0":{"id":284652,"text":"In computing Virginia taxable income pursuant to \u00a7 58.1-322, there shall be deducted from Virginia adjusted gross income as defined in \u00a7 58.1-321:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":284653,"text":"a. The amount allowable for itemized deductions for federal income tax purposes where the taxpayer has elected for the taxable year to itemize deductions on his federal return, but reduced by the amount of income taxes imposed by the Commonwealth or any other taxing jurisdiction and deducted on such federal return and increased by an amount that, when added to the amount deducted under § 170 of the Internal Revenue Code for mileage, results in a mileage deduction at the state level for such purposes at a rate of 18 cents per mile; or\n\t\t\tb. Provided that the taxpayer has not itemized deductions for the taxable year on his federal income tax return: (i) for taxable years beginning before January 1, 2019, and on and after January 1, 2027 $3,000 for single individuals and $6,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return); (ii) for taxable years beginning on and after January 1, 2019, but before January 1, 2022, $4,500 for single individuals and $9,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return); (iii) for taxable years beginning on and after January 1, 2022, but before January 1, 2024, $8,000 for single individuals and $16,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return); (iv) for taxable years beginning on and after January 1, 2024, but before January 1, 2025, $8,500 for single individuals and $17,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return); and (v) for taxable years beginning on and after January 1, 2025, but before January 1, 2027, $8,750 for single individuals and $17,500 for married persons (one-half of such amounts in the case of a married individual filing a separate return). For purposes of this section, any person who may be claimed as a dependent on another taxpayer’s return for the taxable year may compute the deduction only with respect to earned income.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":284654,"text":"a. A deduction in the amount of $930 for each personal exemption allowable to the taxpayer for federal income tax purposes.\n\t\t\tb. Each blind or aged taxpayer as defined under § 63(f) of the Internal Revenue Code shall be entitled to an additional personal exemption in the amount of $800.\n\t\t\tThe additional deduction for blind or aged taxpayers allowed under this subdivision shall be allowable regardless of whether the taxpayer itemizes deductions for the taxable year for federal income tax purposes.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":284655,"text":"A deduction equal to the amount of employment-related expenses upon which the federal credit is based under § 21 of the Internal Revenue Code for expenses for household and dependent care services necessary for gainful employment.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":284656,"text":"An additional $1,000 deduction for each child residing for the entire taxable year in a home under permanent foster care placement as defined in § 63.2-908, provided that the taxpayer can also claim the child as a personal exemption under § 151 of the Internal Revenue Code.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":284657,"text":"a. A deduction in the amount of $12,000 for individuals born on or before January 1, 1939.\n\t\t\tb. A deduction in the amount of $12,000 for individuals born after January 1, 1939, who have attained the age of 65. This deduction shall be reduced by $1 for every $1 that the taxpayer’s adjusted federal adjusted gross income exceeds $50,000 for single taxpayers or $75,000 for married taxpayers. For married taxpayers filing separately, the deduction shall be reduced by $1 for every $1 that the total combined adjusted federal adjusted gross income of both spouses exceeds $75,000.\n\t\t\tFor the purposes of this subdivision, “adjusted federal adjusted gross income” means federal adjusted gross income minus any benefits received under Title II of the Social Security Act and other benefits subject to federal income taxation solely pursuant to § 86 of the Internal Revenue Code, as amended.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":284658,"text":"The amount an individual pays as a fee for an initial screening to become a possible bone marrow donor, if (i) the individual is not reimbursed for such fee or (ii) the individual has not claimed a deduction for the payment of such fee on his federal income tax return.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":284659,"text":"a. A deduction shall be allowed to the purchaser or contributor for the amount paid or contributed during the taxable year for a prepaid tuition contract or college savings trust account entered into with the Commonwealth Savers Plan, pursuant to Chapter 7 (§ 23.1-700 et seq.) of Title 23.1. Except as provided in subdivision b, the amount deducted on any individual income tax return in any taxable year shall be limited to $4,000 per prepaid tuition contract or college savings trust account. No deduction shall be allowed pursuant to this subdivision 7 if such payments or contributions are deducted on the purchaser’s or contributor’s federal income tax return. If the purchase price or annual contribution to a college savings trust account exceeds $4,000, the remainder may be carried forward and subtracted in future taxable years until the purchase price or college savings trust contribution has been fully deducted; however, except as provided in subdivision b, in no event shall the amount deducted in any taxable year exceed $4,000 per contract or college savings trust account. Notwithstanding the statute of limitations on assessments contained in § 58.1-312, any deduction taken hereunder shall be subject to recapture in the taxable year or years in which distributions or refunds are made for any reason other than (i) to pay qualified higher education expenses, as defined in § 529 of the Internal Revenue Code or (ii) the beneficiary’s death, disability, or receipt of a scholarship. For the purposes of this subdivision, “purchaser” or “contributor” means the person shown as such on the records of the Commonwealth Savers Plan as of December 31 of the taxable year. In the case of a transfer of ownership of a prepaid tuition contract or college savings trust account, the transferee shall succeed to the transferor’s tax attributes associated with a prepaid tuition contract or college savings trust account, including, but not limited to, carryover and recapture of deductions.\n\t\t\tb. A purchaser of a prepaid tuition contract or contributor to a college savings trust account who has attained age 70 shall not be subject to the limitation that the amount of the deduction not exceed $4,000 per prepaid tuition contract or college savings trust account in any taxable year. Such taxpayer shall be allowed a deduction for the full amount paid for the contract or contributed to a college savings trust account, less any amounts previously deducted.","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"8":{"id":284660,"text":"The total amount an individual actually contributed in funds to the Virginia Public School Construction Grants Program and Fund, established in Chapter 11.1 (§ 22.1-175.1 et seq.) of Title 22.1, provided that the individual has not claimed a deduction for such amount on his federal income tax return.","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"9":{"id":284661,"text":"An amount equal to 20 percent of the tuition costs incurred by an individual employed as a primary or secondary school teacher licensed pursuant to Chapter 15 (§ 22.1-289.1 et seq.) of Title 22.1 to attend continuing teacher education courses that are required as a condition of employment; however, the deduction provided by this subdivision shall be available only if (i) the individual is not reimbursed for such tuition costs and (ii) the individual has not claimed a deduction for the payment of such tuition costs on his federal income tax return.","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"10"},"10":{"id":284662,"text":"The amount an individual pays annually in premiums for long-term health care insurance, provided that the individual has not claimed a deduction for federal income tax purposes, or, for taxable years beginning before January 1, 2014, a credit under § 58.1-339.11. For taxable years beginning on and after January 1, 2014, no such deduction for long-term health care insurance premiums paid by the individual during the taxable year shall be allowed if the individual has claimed a federal income tax deduction for such taxable year for long-term health care insurance premiums paid by him.","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"9","next_prefix":"11"},"11":{"id":284663,"text":"Contract payments to a producer of quota tobacco or a tobacco quota holder, or their spouses, as provided under the American Jobs Creation Act of 2004 (P.L. 108-357), but only to the extent that such payments have not been subtracted pursuant to subsection D of § 58.1-402, as follows:\n\t\t\ta. If the payment is received in installment payments, then the recognized gain may be subtracted in the taxable year immediately following the year in which the installment payment is received.\n\t\t\tb. If the payment is received in a single payment, then 10 percent of the recognized gain may be subtracted in the taxable year immediately following the year in which the single payment is received. The taxpayer may then deduct an equal amount in each of the nine succeeding taxable years.","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"12":{"id":284664,"text":"An amount equal to 20 percent of the sum paid by an individual pursuant to Chapter 6 (§ 58.1-600 et seq.), not to exceed $500 in each taxable year, in purchasing for his own use the following items of tangible personal property: (i) any clothes washers, room air conditioners, dishwashers, and standard size refrigerators that meet or exceed the applicable energy star efficiency requirements developed by the U.S. Environmental Protection Agency and the U.S. Department of Energy; (ii) any fuel cell that (a) generates electricity using an electrochemical process, (b) has an electricity-only generation efficiency greater than 35 percent, and (c) has a generating capacity of at least two kilowatts; (iii) any gas heat pump that has a coefficient of performance of at least 1.25 for heating and at least 0.70 for cooling; (iv) any electric heat pump hot water heater that yields an energy factor of at least 1.7; (v) any electric heat pump that has a heating system performance factor of at least 8.0 and a cooling seasonal energy efficiency ratio of at least 13.0; (vi) any central air conditioner that has a cooling seasonal energy efficiency ratio of at least 13.5; (vii) any advanced gas or oil water heater that has an energy factor of at least 0.65; (viii) any advanced oil-fired boiler with a minimum annual fuel-utilization rating of 85; (ix) any advanced oil-fired furnace with a minimum annual fuel-utilization rating of 85; and (x) programmable thermostats.","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11","next_prefix":"13"},"13":{"id":284665,"text":"The lesser of $5,000 or the amount actually paid by a living donor of an organ or other living tissue for unreimbursed out-of-pocket expenses directly related to the donation that arose within 12 months of such donation, provided that the donor has not taken a medical deduction in accordance with the provisions of § 213 of the Internal Revenue Code for such expenses. The deduction may be taken in the taxable year in which the donation is made or the taxable year in which the 12-month period expires.","type":"section","prefixes":["13"],"prefix":"13","entire_prefix":"13","prefix_anchor":"13","level":1,"prior_prefix":"12","next_prefix":"14"},"14":{"id":284666,"text":"For taxable years beginning on and after January 1, 2013, the amount an individual age 66 or older with earned income of at least $20,000 for the year and federal adjusted gross income not in excess of $30,000 for the year pays annually in premiums for (i) a prepaid funeral insurance policy covering the individual or (ii) medical or dental insurance for any person for whom individual tax filers may claim a deduction for such premiums under federal income tax laws. As used in this subdivision, “earned income” means the same as that term is defined in § 32(c) of the Internal Revenue Code. The deduction shall not be allowed for any portion of such premiums paid for which the individual has (a) been reimbursed, (b) claimed a deduction for federal income tax purposes, (c) claimed a deduction or subtraction under another provision of this section, or (d) claimed a federal income tax credit or any income tax credit pursuant to this chapter.","type":"section","prefixes":["14"],"prefix":"14","entire_prefix":"14","prefix_anchor":"14","level":1,"prior_prefix":"13","next_prefix":"15"},"15":{"id":284667,"text":"Business interest disallowed as a deduction pursuant to § 163(j) of the Internal Revenue Code:\n\t\t\ta. For taxable years beginning on and after January 1, 2018, but before January 1, 2022, 20 percent of such disallowed business interest;\n\t\t\tb. For taxable years beginning on and after January 1, 2022, but before January 1, 2024, 30 percent of such disallowed business interest;\n\t\t\tc. For taxable years beginning on and after January 2, 2024, 50 percent of such disallowed business interest.\n\t\t\tFor purposes of subdivision 15, “business interest” means the same as that term is defined under § 163(j) of the Internal Revenue Code.","type":"section","prefixes":["15"],"prefix":"15","entire_prefix":"15","prefix_anchor":"15","level":1,"prior_prefix":"14","next_prefix":"16"},"16":{"id":284668,"text":"For taxable years beginning on and after January 1, 2019, the actual amount of real and personal property taxes imposed by the Commonwealth or any other taxing jurisdiction not otherwise deducted solely on account of the dollar limitation imposed on individual deductions by § 164(b)(6)(B) of the Internal Revenue Code.","type":"section","prefixes":["16"],"prefix":"16","entire_prefix":"16","prefix_anchor":"16","level":1,"prior_prefix":"15","next_prefix":"17"},"17":{"id":284669,"text":"For taxable years beginning before January 1, 2021, up to $100,000 of the amount that is not deductible when computing federal adjusted gross income solely on account of the portion of subdivision B 10 of § 58.1-301 related to Paycheck Protection Program loans.","type":"section","prefixes":["17"],"prefix":"17","entire_prefix":"17","prefix_anchor":"17","level":1,"prior_prefix":"16","next_prefix":"18"},"18":{"id":284670,"text":"For taxable years beginning on and after January 1, 2022, but before January 1, 2025, the lesser of $500 or the actual amount paid or incurred for eligible educator qualifying expenses. For purposes of this subdivision, “eligible educator” means an individual who for at least 900 hours during the taxable year in which the credit under this section is claimed served as a teacher licensed pursuant to Chapter 15 (§ 22.1-289.1 et seq.) of Title 22.1, instructor, student counselor, principal, special needs personnel, or student aide serving accredited public or private primary and secondary school students in Virginia, and “qualifying expenses” means 100 percent of the amount paid or incurred by an eligible educator during the taxable year for participation in professional development courses and the purchase of books, supplies, computer equipment (including related software and services), other educational and teaching equipment, and supplementary materials used directly in that individual’s service to students as an eligible educator, provided that such purchases were neither reimbursed nor claimed as a deduction on the eligible educator’s federal income tax return for such taxable year.","type":"section","prefixes":["18"],"prefix":"18","entire_prefix":"18","prefix_anchor":"18","level":1,"prior_prefix":"17","next_prefix":"19"},"19":{"id":284671,"text":"For taxable years beginning on and after January 1, 2026, the amount paid or cost incurred for installing a qualifying upgrade required to interconnect a triggering project. No deduction shall be allowed under this section for a taxpayer who has claimed a deduction under subsection I of § 58.1-402 for the same amount paid or cost incurred to install such qualifying upgrade.\n\t\t\tFor purposes of this subdivision, “qualifying upgrade” and “triggering project” have the same meanings as provided for those terms in § 56-596.5.","type":"section","prefixes":["19"],"prefix":"19","entire_prefix":"19","prefix_anchor":"19","level":1,"prior_prefix":"18"}},"ancestry":[{"id":15071,"edition_id":1,"name":"Individual Income Tax","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:51:58","date_modified":"2026-06-26 03:51:58","permalink":{"id":253971,"object_type":"structure","relational_id":15071,"identifier":"2","token":"58.1\/I\/3\/2","url":"\/58.1\/I\/3\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":62270,"structure_id":15071,"section_number":"58.1-320","catch_line":"Imposition of tax","url":"\/58.1-320\/","token":"58.1\/I\/3\/2\/58.1-320","metadata":false},{"id":77087,"structure_id":15071,"section_number":"58.1-321","catch_line":"Exemptions and exclusions","url":"\/58.1-321\/","token":"58.1\/I\/3\/2\/58.1-321","metadata":false},{"id":74654,"structure_id":15071,"section_number":"58.1-322","catch_line":"Virginia taxable income of residents","url":"\/58.1-322\/","token":"58.1\/I\/3\/2\/58.1-322","metadata":false},{"id":85168,"structure_id":15071,"section_number":"58.1-322.01","catch_line":"Virginia taxable income; additions","url":"\/58.1-322.01\/","token":"58.1\/I\/3\/2\/58.1-322.01","metadata":false},{"id":81784,"structure_id":15071,"section_number":"58.1-322.02","catch_line":"Virginia taxable income; subtractions","url":"\/58.1-322.02\/","token":"58.1\/I\/3\/2\/58.1-322.02","metadata":false},{"id":79461,"structure_id":15071,"section_number":"58.1-322.03","catch_line":"Virginia taxable income; deductions","url":"\/58.1-322.03\/","token":"58.1\/I\/3\/2\/58.1-322.03","metadata":false},{"id":67865,"structure_id":15071,"section_number":"58.1-322.04","catch_line":"Virginia taxable income; additional modifications","url":"\/58.1-322.04\/","token":"58.1\/I\/3\/2\/58.1-322.04","metadata":false},{"id":82610,"structure_id":15071,"section_number":"58.1-322.1","catch_line":"Expired","url":"\/58.1-322.1\/","token":"58.1\/I\/3\/2\/58.1-322.1","metadata":false},{"id":68261,"structure_id":15071,"section_number":"58.1-322.2","catch_line":"Expired","url":"\/58.1-322.2\/","token":"58.1\/I\/3\/2\/58.1-322.2","metadata":false},{"id":60516,"structure_id":15071,"section_number":"58.1-323","catch_line":"Repealed","url":"\/58.1-323\/","token":"58.1\/I\/3\/2\/58.1-323","metadata":false},{"id":87236,"structure_id":15071,"section_number":"58.1-323.1","catch_line":"Repealed","url":"\/58.1-323.1\/","token":"58.1\/I\/3\/2\/58.1-323.1","metadata":false},{"id":76604,"structure_id":15071,"section_number":"58.1-324","catch_line":"Married individuals","url":"\/58.1-324\/","token":"58.1\/I\/3\/2\/58.1-324","metadata":false},{"id":57460,"structure_id":15071,"section_number":"58.1-325","catch_line":"Virginia taxable income of nonresident individuals, partners, beneficiaries and certain shareholders","url":"\/58.1-325\/","token":"58.1\/I\/3\/2\/58.1-325","metadata":false},{"id":86632,"structure_id":15071,"section_number":"58.1-326","catch_line":"Married individuals when one nonresident","url":"\/58.1-326\/","token":"58.1\/I\/3\/2\/58.1-326","metadata":false}],"previous_section":{"id":81784,"structure_id":15071,"section_number":"58.1-322.02","catch_line":"Virginia taxable income; subtractions","url":"\/58.1-322.02\/","token":"58.1\/I\/3\/2\/58.1-322.02","metadata":false},"next_section":{"id":67865,"structure_id":15071,"section_number":"58.1-322.04","catch_line":"Virginia taxable income; additional modifications","url":"\/58.1-322.04\/","token":"58.1\/I\/3\/2\/58.1-322.04","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-322.03\/","history_text":"

This law was first created in 2017. The record of its establishment is cataloged in chapter 444<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2019, chapters 17<\/a> and 18<\/a>; in 2022, chapters 3<\/a>, 19<\/a>, and 648<\/a>; in 2024, chapter 217<\/a>; in 2025, chapters 615<\/a>, 658<\/a>, and 725<\/a>.<\/p>","references":[{"id":82538,"section_number":"58.1-302","catch_line":"Definitions","order_by":null,"url":"\/58.1-302\/"},{"id":77087,"section_number":"58.1-321","catch_line":"Exemptions and exclusions","order_by":null,"url":"\/58.1-321\/"},{"id":81784,"section_number":"58.1-322.02","catch_line":"Virginia taxable income; subtractions","order_by":null,"url":"\/58.1-322.02\/"},{"id":76604,"section_number":"58.1-324","catch_line":"Married individuals","order_by":null,"url":"\/58.1-324\/"},{"id":59088,"section_number":"58.1-339.8","catch_line":"Income tax credit for low-income taxpayers","order_by":null,"url":"\/58.1-339.8\/"},{"id":57467,"section_number":"58.1-363","catch_line":"Share of a nonresident estate, trust, or beneficiary in income from Virginia sources","order_by":null,"url":"\/58.1-363\/"},{"id":62953,"section_number":"58.1-391","catch_line":"Virginia taxable income of owners of a pass-through entity","order_by":null,"url":"\/58.1-391\/"},{"id":56970,"section_number":"58.1-402","catch_line":"Virginia taxable income","order_by":null,"url":"\/58.1-402\/"},{"id":58457,"section_number":"58.1-490","catch_line":"Declarations of estimated tax","order_by":null,"url":"\/58.1-490\/"}],"refers_to":[{"id":76514,"section_number":"22.1-175.1","catch_line":"Virginia Public School Construction Grants Program established","order_by":null,"url":"\/22.1-175.1\/"},{"id":73824,"section_number":"22.1-289.1","catch_line":"Teacher compensation; biennial review required","order_by":null,"url":"\/22.1-289.1\/"},{"id":66160,"section_number":"23.1-700","catch_line":"Definitions","order_by":null,"url":"\/23.1-700\/"},{"id":75595,"section_number":"56-596.5","catch_line":"Rate increases in certain months prohibited; Phase I Utility","order_by":null,"url":"\/56-596.5\/"},{"id":75208,"section_number":"58.1-301","catch_line":"(Applicable to taxable years beginning on and after January 1, 2023) Conformity to Internal Revenue Code","order_by":null,"url":"\/58.1-301\/"},{"id":59212,"section_number":"58.1-312","catch_line":"Limitations on assessment","order_by":null,"url":"\/58.1-312\/"},{"id":77087,"section_number":"58.1-321","catch_line":"Exemptions and exclusions","order_by":null,"url":"\/58.1-321\/"},{"id":74654,"section_number":"58.1-322","catch_line":"Virginia taxable income of residents","order_by":null,"url":"\/58.1-322\/"},{"id":84695,"section_number":"58.1-339.11","catch_line":"Repealed","order_by":null,"url":"\/58.1-339.11\/"},{"id":56970,"section_number":"58.1-402","catch_line":"Virginia taxable income","order_by":null,"url":"\/58.1-402\/"},{"id":63208,"section_number":"58.1-600","catch_line":"Short title","order_by":null,"url":"\/58.1-600\/"},{"id":83951,"section_number":"63.2-908","catch_line":"Permanent foster care placement","order_by":null,"url":"\/63.2-908\/"}],"permalink":{"id":253993,"object_type":"law","relational_id":79461,"identifier":"58.1-322.03","token":"58.1\/I\/3\/2\/58.1-322.03","url":"\/58.1-322.03\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-322.03\/","token":"58.1\/I\/3\/2\/58.1-322.03","dublin_core":{"Title":"Virginia taxable income; deductions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-322.03","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

In computing Virginia taxable income pursuant to \u00a7 58.1-322<\/a>, there shall be deducted from Virginia adjusted gross income as defined in \u00a7 58.1-321<\/a>:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> a. The amount allowable for itemized deductions for federal income tax purposes where the taxpayer<\/span> has elected for the taxable year to itemize deductions on his federal return, but reduced by the amount of income taxes imposed by the Commonwealth or any other taxing jurisdiction<\/span> and deducted on such federal return and increased by an amount that, when added to the amount deducted under § 170 of the Internal Revenue Code for mileage, results in a mileage deduction at the state level for such purposes at a rate of 18 cents per mile; or\n\t\t\tb. Provided that the taxpayer<\/span> has not itemized deductions for the taxable year on his federal income tax return: (i) for taxable years beginning before January 1, 2019, and on and after January 1, 2027 $3,000 for single individuals<\/span> and $6,000 for married persons (one-half of such amounts in the case of a married individual<\/span> filing a separate return); (ii) for taxable years beginning on and after January 1, 2019, but before January 1, 2022, $4,500 for single individuals<\/span> and $9,000 for married persons (one-half of such amounts in the case of a married individual<\/span> filing a separate return); (iii) for taxable years beginning on and after January 1, 2022, but before January 1, 2024, $8,000 for single individuals<\/span> and $16,000 for married persons (one-half of such amounts in the case of a married individual<\/span> filing a separate return); (iv) for taxable years beginning on and after January 1, 2024, but before January 1, 2025, $8,500 for single individuals<\/span> and $17,000 for married persons (one-half of such amounts in the case of a married individual<\/span> filing a separate return); and (v) for taxable years beginning on and after January 1, 2025, but before January 1, 2027, $8,750 for single individuals<\/span> and $17,500 for married persons (one-half of such amounts in the case of a married individual<\/span> filing a separate return). For purposes of this section, any person who may be claimed as a dependent on another taxpayer<\/span>’s return for the taxable year may compute the deduction only with respect to earned income<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> a. A deduction in the amount of $930 for each personal exemption allowable to the taxpayer<\/span> for federal income tax purposes.\n\t\t\tb. Each blind or aged taxpayer<\/span> as defined under § 63(f) of the Internal Revenue Code shall be entitled to an additional personal exemption in the amount of $800.\n\t\t\tThe additional deduction for blind or aged taxpayers<\/span> allowed under this subdivision shall be allowable regardless of whether the taxpayer<\/span> itemizes deductions for the taxable year for federal income tax purposes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A deduction equal to the amount of employment-related expenses upon which the federal credit is based under § 21 of the Internal Revenue Code for expenses for household and dependent care services necessary for gainful employment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An additional $1,000 deduction for each child residing for the entire taxable year in a home under permanent foster care placement as defined in § 63.2-908<\/a>, provided that the taxpayer<\/span> can also claim the child as a personal exemption under § 151 of the Internal Revenue Code. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> a. A deduction in the amount of $12,000 for individuals<\/span> born on or before January 1, 1939.\n\t\t\tb. A deduction in the amount of $12,000 for individuals<\/span> born after January 1, 1939, who have attained the age of 65. This deduction shall be reduced by $1 for every $1 that the taxpayer<\/span>’s adjusted federal adjusted gross income<\/span> exceeds $50,000 for single taxpayers<\/span> or $75,000 for married taxpayers<\/span>. For married taxpayers<\/span> filing separately, the deduction shall be reduced by $1 for every $1 that the total combined adjusted federal adjusted gross income<\/span> of both spouses exceeds $75,000.\n\t\t\tFor the purposes of this subdivision, “adjusted federal adjusted gross income<\/span>” means federal adjusted gross income minus any benefits received under Title II of the Social Security Act and other benefits subject to federal income taxation solely pursuant to § 86 of the Internal Revenue Code, as amended. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The amount an individual<\/span> pays as a fee for an initial screening to become a possible bone marrow donor, if (i) the individual<\/span> is not reimbursed for such fee or (ii) the individual<\/span> has not claimed a deduction for the payment of such fee on his federal income tax return. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> a. A deduction shall be allowed to the purchaser<\/span> or contributor<\/span> for the amount paid or contributed during the taxable year for a prepaid tuition contract<\/span> or college savings trust<\/span> account entered into with the Commonwealth Savers Plan, pursuant to Chapter 7 (§ 23.1-700<\/a> et seq.) of Title 23.1. Except as provided in subdivision b, the amount deducted on any individual<\/span> income tax return in any taxable year shall be limited to $4,000 per prepaid tuition contract<\/span> or college savings trust<\/span> account. No deduction shall be allowed pursuant to this subdivision 7 if such payments or contributions are deducted on the purchaser<\/span>’s or contributor<\/span>’s federal income tax return. If the purchase price or annual contribution to a college savings trust<\/span> account exceeds $4,000, the remainder may be carried forward and subtracted in future taxable years until the purchase price or college savings trust<\/span> contribution has been fully deducted; however, except as provided in subdivision b, in no event shall the amount deducted in any taxable year exceed $4,000 per contract<\/span> or college savings trust<\/span> account. Notwithstanding the statute of limitations<\/span> on assessments contained in § 58.1-312<\/a>, any deduction taken hereunder shall be subject to recapture in the taxable year or years in which distributions or refunds are made for any reason other than (i) to pay qualified higher education expenses, as defined in § 529 of the Internal Revenue Code or (ii) the beneficiary’s death, disability, or receipt of a scholarship. For the purposes of this subdivision, “purchaser<\/span>” or “contributor<\/span>” means the person shown as such on the records of the Commonwealth Savers Plan as of December 31 of the taxable year. In the case of a transfer of ownership of a prepaid tuition contract<\/span> or college savings trust<\/span> account, the transferee shall succeed to the transferor’s tax attributes associated with a prepaid tuition contract<\/span> or college savings trust<\/span> account, including, but not limited to, carryover and recapture of deductions.\n\t\t\tb. A purchaser<\/span> of a prepaid tuition contract<\/span> or contributor<\/span> to a college savings trust<\/span> account who has attained age 70 shall not be subject to the limitation that the amount of the deduction not exceed $4,000 per prepaid tuition contract<\/span> or college savings trust<\/span> account in any taxable year. Such taxpayer<\/span> shall be allowed a deduction for the full amount paid for the contract<\/span> or contributed to a college savings trust<\/span> account, less any amounts previously deducted. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> The total amount an individual<\/span> actually contributed in funds to the Virginia Public School Construction Grants Program and Fund, established in Chapter 11.1 (§ 22.1-175.1<\/a> et seq.) of Title 22.1, provided that the individual<\/span> has not claimed a deduction for such amount on his federal income tax return. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> An amount equal to 20 percent of the tuition costs incurred by an individual<\/span> employed as a primary or secondary school teacher licensed pursuant to Chapter 15 (§ 22.1-289.1<\/a> et seq.) of Title 22.1 to attend continuing teacher education courses that are required as a condition of employment; however, the deduction provided by this subdivision shall be available only if (i) the individual<\/span> is not reimbursed for such tuition costs and (ii) the individual<\/span> has not claimed a deduction for the payment of such tuition costs on his federal income tax return. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> The amount an individual<\/span> pays annually in premiums for long-term health care insurance, provided that the individual<\/span> has not claimed a deduction for federal income tax purposes, or, for taxable years beginning before January 1, 2014, a credit under § 58.1-339.11<\/a>. For taxable years beginning on and after January 1, 2014, no such deduction for long-term health care insurance premiums paid by the individual<\/span> during the taxable year shall be allowed if the individual<\/span> has claimed a federal income tax deduction for such taxable year for long-term health care insurance premiums paid by him. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> Contract<\/span> payments to a producer of quota tobacco or a tobacco quota holder, or their spouses, as provided under the American Jobs Creation Act of 2004 (P.L. 108-357), but only to the extent that such payments have not been subtracted pursuant to subsection D of § 58.1-402<\/a>, as follows:\n\t\t\ta. If the payment is received in installment payments, then the recognized gain may be subtracted in the taxable year immediately following the year in which the installment payment is received.\n\t\t\tb. If the payment is received in a single payment, then 10 percent of the recognized gain may be subtracted in the taxable year immediately following the year in which the single payment is received. The taxpayer<\/span> may then deduct an equal amount in each of the nine succeeding taxable years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> An amount equal to 20 percent of the sum paid by an individual<\/span> pursuant to Chapter 6 (§ 58.1-600<\/a> et seq.), not to exceed $500 in each taxable year, in purchasing for his own use the following items of tangible personal property: (i) any clothes washers, room air conditioners, dishwashers, and standard size refrigerators that meet or exceed the applicable energy star efficiency requirements developed by the U.S. Environmental Protection Agency and the U.S. Department<\/span> of Energy; (ii) any fuel cell that (a) generates electricity using an electrochemical process, (b) has an electricity-only generation efficiency greater than 35 percent, and (c) has a generating capacity of at least two kilowatts; (iii) any gas heat pump that has a coefficient of performance of at least 1.25 for heating and at least 0.70 for cooling; (iv) any electric heat pump hot water heater that yields an energy factor of at least 1.7; (v) any electric heat pump that has a heating system performance factor of at least 8.0 and a cooling seasonal energy efficiency ratio of at least 13.0; (vi) any central air conditioner that has a cooling seasonal energy efficiency ratio of at least 13.5; (vii) any advanced gas or oil water heater that has an energy factor of at least 0.65; (viii) any advanced oil-fired boiler with a minimum annual fuel-utilization rating of 85; (ix) any advanced oil-fired furnace with a minimum annual fuel-utilization rating of 85; and (x) programmable thermostats. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> The lesser of $5,000 or the amount actually paid by a living donor of an organ or other living tissue for unreimbursed out-of-pocket expenses directly related to the donation that arose within 12 months of such donation, provided that the donor has not taken a medical deduction in accordance with the provisions of § 213 of the Internal Revenue Code for such expenses. The deduction may be taken in the taxable year in which the donation is made or the taxable year in which the 12-month period expires. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> For taxable years beginning on and after January 1, 2013, the amount an individual<\/span> age 66 or older with earned income<\/span> of at least $20,000 for the year and federal adjusted gross income not in excess of $30,000 for the year pays annually in premiums for (i) a prepaid funeral insurance policy covering the individual<\/span> or (ii) medical or dental insurance for any person for whom individual<\/span> tax filers may claim a deduction for such premiums under federal income tax laws<\/span>. As used in this subdivision, “earned income<\/span>” means the same as that term is defined in § 32(c) of the Internal Revenue Code. The deduction shall not be allowed for any portion of such premiums paid for which the individual<\/span> has (a) been reimbursed, (b) claimed a deduction for federal income tax purposes, (c) claimed a deduction or subtraction under another provision of this section, or (d) claimed a federal income tax credit or any income tax credit pursuant to this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> Business interest<\/span> disallowed as a deduction pursuant to § 163(j) of the Internal Revenue Code:\n\t\t\ta. For taxable years beginning on and after January 1, 2018, but before January 1, 2022, 20 percent of such disallowed business interest<\/span>;\n\t\t\tb. For taxable years beginning on and after January 1, 2022, but before January 1, 2024, 30 percent of such disallowed business interest<\/span>;\n\t\t\tc. For taxable years beginning on and after January 2, 2024, 50 percent of such disallowed business interest<\/span>.\n\t\t\tFor purposes of subdivision 15, “business interest<\/span>” means the same as that term is defined under § 163(j) of the Internal Revenue Code. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

16.<\/span> For taxable years beginning on and after January 1, 2019, the actual amount of real and personal property taxes imposed by the Commonwealth or any other taxing jurisdiction<\/span> not otherwise deducted solely on account of the dollar limitation imposed on individual<\/span> deductions by § 164(b)(6)(B) of the Internal Revenue Code. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

17.<\/span> For taxable years beginning before January 1, 2021, up to $100,000 of the amount that is not deductible when computing federal adjusted gross income solely on account of the portion of subdivision B 10 of § 58.1-301<\/a> related to Paycheck Protection Program loans. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

18.<\/span> For taxable years beginning on and after January 1, 2022, but before January 1, 2025, the lesser of $500 or the actual amount paid or incurred for eligible educator<\/span> qualifying expenses<\/span>. For purposes of this subdivision, “eligible educator<\/span>” means an individual<\/span> who for at least 900 hours during the taxable year in which the credit under this section is claimed served as a teacher licensed pursuant to Chapter 15 (§ 22.1-289.1<\/a> et seq.) of Title 22.1, instructor, student counselor, principal, special needs personnel, or student aide serving accredited public or private primary and secondary school students in Virginia, and “qualifying expenses<\/span>” means 100 percent of the amount paid or incurred by an eligible educator<\/span> during the taxable year for participation in professional development courses and the purchase of books, supplies, computer equipment (including related software and services), other educational and teaching equipment, and supplementary materials<\/span> used directly in that individual<\/span>’s service to students as an eligible educator<\/span>, provided that such purchases were neither reimbursed nor claimed as a deduction on the eligible educator<\/span>’s federal income tax return for such taxable year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

19.<\/span> For taxable years beginning on and after January 1, 2026, the amount paid or cost incurred for installing a qualifying upgrade required to interconnect a triggering project. No deduction shall be allowed under this section for a taxpayer<\/span> who has claimed a deduction under subsection I of § 58.1-402<\/a> for the same amount paid or cost incurred to install such qualifying upgrade.\n\t\t\tFor purposes of this subdivision, “qualifying upgrade” and “triggering project” have the same meanings as provided for those terms in § 56-596.5<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVIRGINIA TAXABLE INCOME; DEDUCTIONS (\u00a7 58.1-322.03)\n\nIn computing Virginia taxable income pursuant to \u00a7 58.1-322, there shall be\ndeducted from Virginia adjusted gross income as defined in \u00a7 58.1-321:\n\n1. a. The amount allowable for itemized deductions for federal income tax\npurposes where the taxpayer has elected for the taxable year to itemize\ndeductions on his federal return, but reduced by the amount of income taxes\nimposed by the Commonwealth or any other taxing jurisdiction and deducted on\nsuch federal return and increased by an amount that, when added to the amount\ndeducted under § 170 of the Internal Revenue Code for mileage, results in a\nmileage deduction at the state level for such purposes at a rate of 18 cents per\nmile; or\n\t\t\tb. Provided that the taxpayer has not itemized deductions for the taxable\nyear on his federal income tax return: (i) for taxable years beginning before\nJanuary 1, 2019, and on and after January 1, 2027 $3,000 for single individuals\nand $6,000 for married persons (one-half of such amounts in the case of a\nmarried individual filing a separate return); (ii) for taxable years beginning\non and after January 1, 2019, but before January 1, 2022, $4,500 for single\nindividuals and $9,000 for married persons (one-half of such amounts in the case\nof a married individual filing a separate return); (iii) for taxable years\nbeginning on and after January 1, 2022, but before January 1, 2024, $8,000 for\nsingle individuals and $16,000 for married persons (one-half of such amounts in\nthe case of a married individual filing a separate return); (iv) for taxable\nyears beginning on and after January 1, 2024, but before January 1, 2025, $8,500\nfor single individuals and $17,000 for married persons (one-half of such amounts\nin the case of a married individual filing a separate return); and (v) for\ntaxable years beginning on and after January 1, 2025, but before January 1,\n2027, $8,750 for single individuals and $17,500 for married persons (one-half of\nsuch amounts in the case of a married individual filing a separate return). For\npurposes of this section, any person who may be claimed as a dependent on\nanother taxpayer’s return for the taxable year may compute the deduction\nonly with respect to earned income.\n\n2. a. A deduction in the amount of $930 for each personal exemption allowable to\nthe taxpayer for federal income tax purposes.\n\t\t\tb. Each blind or aged taxpayer as defined under § 63(f) of the Internal\nRevenue Code shall be entitled to an additional personal exemption in the amount\nof $800.\n\t\t\tThe additional deduction for blind or aged taxpayers allowed under this\nsubdivision shall be allowable regardless of whether the taxpayer itemizes\ndeductions for the taxable year for federal income tax purposes.\n\n3. A deduction equal to the amount of employment-related expenses upon which the\nfederal credit is based under § 21 of the Internal Revenue Code for\nexpenses for household and dependent care services necessary for gainful\nemployment.\n\n4. An additional $1,000 deduction for each child residing for the entire taxable\nyear in a home under permanent foster care placement as defined in §\n63.2-908, provided that the taxpayer can also claim the child as a personal\nexemption under § 151 of the Internal Revenue Code.\n\n5. a. A deduction in the amount of $12,000 for individuals born on or before\nJanuary 1, 1939.\n\t\t\tb. A deduction in the amount of $12,000 for individuals born after January 1,\n1939, who have attained the age of 65. This deduction shall be reduced by $1 for\nevery $1 that the taxpayer’s adjusted federal adjusted gross income\nexceeds $50,000 for single taxpayers or $75,000 for married taxpayers. For\nmarried taxpayers filing separately, the deduction shall be reduced by $1 for\nevery $1 that the total combined adjusted federal adjusted gross income of both\nspouses exceeds $75,000.\n\t\t\tFor the purposes of this subdivision, “adjusted federal adjusted gross\nincome” means federal adjusted gross income minus any benefits received\nunder Title II of the Social Security Act and other benefits subject to federal\nincome taxation solely pursuant to § 86 of the Internal Revenue Code, as\namended.\n\n6. The amount an individual pays as a fee for an initial screening to become a\npossible bone marrow donor, if (i) the individual is not reimbursed for such fee\nor (ii) the individual has not claimed a deduction for the payment of such fee\non his federal income tax return.\n\n7. a. A deduction shall be allowed to the purchaser or contributor for the\namount paid or contributed during the taxable year for a prepaid tuition\ncontract or college savings trust account entered into with the Commonwealth\nSavers Plan, pursuant to Chapter 7 (§ 23.1-700 et seq.) of Title 23.1.\nExcept as provided in subdivision b, the amount deducted on any individual\nincome tax return in any taxable year shall be limited to $4,000 per prepaid\ntuition contract or college savings trust account. No deduction shall be allowed\npursuant to this subdivision 7 if such payments or contributions are deducted on\nthe purchaser’s or contributor’s federal income tax return. If the\npurchase price or annual contribution to a college savings trust account exceeds\n$4,000, the remainder may be carried forward and subtracted in future taxable\nyears until the purchase price or college savings trust contribution has been\nfully deducted; however, except as provided in subdivision b, in no event shall\nthe amount deducted in any taxable year exceed $4,000 per contract or college\nsavings trust account. Notwithstanding the statute of limitations on assessments\ncontained in § 58.1-312, any deduction taken hereunder shall be subject to\nrecapture in the taxable year or years in which distributions or refunds are\nmade for any reason other than (i) to pay qualified higher education expenses,\nas defined in § 529 of the Internal Revenue Code or (ii) the\nbeneficiary’s death, disability, or receipt of a scholarship. For the\npurposes of this subdivision, “purchaser” or\n“contributor” means the person shown as such on the records of the\nCommonwealth Savers Plan as of December 31 of the taxable year. In the case of a\ntransfer of ownership of a prepaid tuition contract or college savings trust\naccount, the transferee shall succeed to the transferor’s tax attributes\nassociated with a prepaid tuition contract or college savings trust account,\nincluding, but not limited to, carryover and recapture of deductions.\n\t\t\tb. A purchaser of a prepaid tuition contract or contributor to a college\nsavings trust account who has attained age 70 shall not be subject to the\nlimitation that the amount of the deduction not exceed $4,000 per prepaid\ntuition contract or college savings trust account in any taxable year. Such\ntaxpayer shall be allowed a deduction for the full amount paid for the contract\nor contributed to a college savings trust account, less any amounts previously\ndeducted.\n\n8. The total amount an individual actually contributed in funds to the Virginia\nPublic School Construction Grants Program and Fund, established in Chapter 11.1\n(§ 22.1-175.1 et seq.) of Title 22.1, provided that the individual has not\nclaimed a deduction for such amount on his federal income tax return.\n\n9. An amount equal to 20 percent of the tuition costs incurred by an individual\nemployed as a primary or secondary school teacher licensed pursuant to Chapter\n15 (§ 22.1-289.1 et seq.) of Title 22.1 to attend continuing teacher\neducation courses that are required as a condition of employment; however, the\ndeduction provided by this subdivision shall be available only if (i) the\nindividual is not reimbursed for such tuition costs and (ii) the individual has\nnot claimed a deduction for the payment of such tuition costs on his federal\nincome tax return.\n\n10. The amount an individual pays annually in premiums for long-term health care\ninsurance, provided that the individual has not claimed a deduction for federal\nincome tax purposes, or, for taxable years beginning before January 1, 2014, a\ncredit under § 58.1-339.11. For taxable years beginning on and after\nJanuary 1, 2014, no such deduction for long-term health care insurance premiums\npaid by the individual during the taxable year shall be allowed if the\nindividual has claimed a federal income tax deduction for such taxable year for\nlong-term health care insurance premiums paid by him.\n\n11. Contract payments to a producer of quota tobacco or a tobacco quota holder,\nor their spouses, as provided under the American Jobs Creation Act of 2004 (P.L.\n108-357), but only to the extent that such payments have not been subtracted\npursuant to subsection D of § 58.1-402, as follows:\n\t\t\ta. If the payment is received in installment payments, then the recognized\ngain may be subtracted in the taxable year immediately following the year in\nwhich the installment payment is received.\n\t\t\tb. If the payment is received in a single payment, then 10 percent of the\nrecognized gain may be subtracted in the taxable year immediately following the\nyear in which the single payment is received. The taxpayer may then deduct an\nequal amount in each of the nine succeeding taxable years.\n\n12. An amount equal to 20 percent of the sum paid by an individual pursuant to\nChapter 6 (§ 58.1-600 et seq.), not to exceed $500 in each taxable year, in\npurchasing for his own use the following items of tangible personal property:\n(i) any clothes washers, room air conditioners, dishwashers, and standard size\nrefrigerators that meet or exceed the applicable energy star efficiency\nrequirements developed by the U.S. Environmental Protection Agency and the U.S.\nDepartment of Energy; (ii) any fuel cell that (a) generates electricity using an\nelectrochemical process, (b) has an electricity-only generation efficiency\ngreater than 35 percent, and (c) has a generating capacity of at least two\nkilowatts; (iii) any gas heat pump that has a coefficient of performance of at\nleast 1.25 for heating and at least 0.70 for cooling; (iv) any electric heat\npump hot water heater that yields an energy factor of at least 1.7; (v) any\nelectric heat pump that has a heating system performance factor of at least 8.0\nand a cooling seasonal energy efficiency ratio of at least 13.0; (vi) any\ncentral air conditioner that has a cooling seasonal energy efficiency ratio of\nat least 13.5; (vii) any advanced gas or oil water heater that has an energy\nfactor of at least 0.65; (viii) any advanced oil-fired boiler with a minimum\nannual fuel-utilization rating of 85; (ix) any advanced oil-fired furnace with a\nminimum annual fuel-utilization rating of 85; and (x) programmable thermostats.\n\n13. The lesser of $5,000 or the amount actually paid by a living donor of an\norgan or other living tissue for unreimbursed out-of-pocket expenses directly\nrelated to the donation that arose within 12 months of such donation, provided\nthat the donor has not taken a medical deduction in accordance with the\nprovisions of § 213 of the Internal Revenue Code for such expenses. The\ndeduction may be taken in the taxable year in which the donation is made or the\ntaxable year in which the 12-month period expires.\n\n14. For taxable years beginning on and after January 1, 2013, the amount an\nindividual age 66 or older with earned income of at least $20,000 for the year\nand federal adjusted gross income not in excess of $30,000 for the year pays\nannually in premiums for (i) a prepaid funeral insurance policy covering the\nindividual or (ii) medical or dental insurance for any person for whom\nindividual tax filers may claim a deduction for such premiums under federal\nincome tax laws. As used in this subdivision, “earned income” means\nthe same as that term is defined in § 32(c) of the Internal Revenue Code.\nThe deduction shall not be allowed for any portion of such premiums paid for\nwhich the individual has (a) been reimbursed, (b) claimed a deduction for\nfederal income tax purposes, (c) claimed a deduction or subtraction under\nanother provision of this section, or (d) claimed a federal income tax credit or\nany income tax credit pursuant to this chapter.\n\n15. Business interest disallowed as a deduction pursuant to § 163(j) of the\nInternal Revenue Code:\n\t\t\ta. For taxable years beginning on and after January 1, 2018, but before\nJanuary 1, 2022, 20 percent of such disallowed business interest;\n\t\t\tb. For taxable years beginning on and after January 1, 2022, but before\nJanuary 1, 2024, 30 percent of such disallowed business interest;\n\t\t\tc. For taxable years beginning on and after January 2, 2024, 50 percent of\nsuch disallowed business interest.\n\t\t\tFor purposes of subdivision 15, “business interest” means the\nsame as that term is defined under § 163(j) of the Internal Revenue Code.\n\n16. For taxable years beginning on and after January 1, 2019, the actual amount\nof real and personal property taxes imposed by the Commonwealth or any other\ntaxing jurisdiction not otherwise deducted solely on account of the dollar\nlimitation imposed on individual deductions by § 164(b)(6)(B) of the\nInternal Revenue Code.\n\n17. For taxable years beginning before January 1, 2021, up to $100,000 of the\namount that is not deductible when computing federal adjusted gross income\nsolely on account of the portion of subdivision B 10 of § 58.1-301 related\nto Paycheck Protection Program loans.\n\n18. For taxable years beginning on and after January 1, 2022, but before January\n1, 2025, the lesser of $500 or the actual amount paid or incurred for eligible\neducator qualifying expenses. For purposes of this subdivision, “eligible\neducator” means an individual who for at least 900 hours during the\ntaxable year in which the credit under this section is claimed served as a\nteacher licensed pursuant to Chapter 15 (§ 22.1-289.1 et seq.) of Title\n22.1, instructor, student counselor, principal, special needs personnel, or\nstudent aide serving accredited public or private primary and secondary school\nstudents in Virginia, and “qualifying expenses” means 100 percent of\nthe amount paid or incurred by an eligible educator during the taxable year for\nparticipation in professional development courses and the purchase of books,\nsupplies, computer equipment (including related software and services), other\neducational and teaching equipment, and supplementary materials used directly in\nthat individual’s service to students as an eligible educator, provided\nthat such purchases were neither reimbursed nor claimed as a deduction on the\neligible educator’s federal income tax return for such taxable year.\n\n19. For taxable years beginning on and after January 1, 2026, the amount paid or\ncost incurred for installing a qualifying upgrade required to interconnect a\ntriggering project. No deduction shall be allowed under this section for a\ntaxpayer who has claimed a deduction under subsection I of § 58.1-402 for\nthe same amount paid or cost incurred to install such qualifying upgrade.\n\t\t\tFor purposes of this subdivision, “qualifying upgrade” and\n“triggering project” have the same meanings as provided for those\nterms in § 56-596.5.\n\nHISTORY: 2017, c. 444; 2019, cc. 17, 18; 2021, Sp. Sess. I, cc. 117, 118, 552;\n2022, cc. 3, 19, 648; 2022, Sp. Sess. I, cc. 1, 6; 2023, Sp. Sess. I, c. 1;\n2024, c. 217; 2025, cc. 615, 658, 725.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}