The House Appropriations Committee monitors state general fund tax revenue collections in comparison to the official revenue projections developed by the Department of Taxation and included the Appropriation Act.
Additionally, the Committee works with the House Committee on Finance to ensure that any tax policy changes adopted by the legislature are accurately reflected in the adopted Appropriation Act.
The General fund is flexible revenue that can be used at the discretion of the General Assembly to fund government services and programs. Three primary taxes support general fund revenues capacity in Virginia: personal income, sales, and corporate income taxes.
Budget Overview
Personal income tax collections (withholding and nonwithholding) drive General Fund revenue collections. The FY 2026 estimate included in the forecast in Chapter 725, 2025 Acts of Assembly shows close to 70% of revenue coming from personal income tax collections with about $17.9 billion coming from payroll withholding collections (57%). The introduced Caboose Budget bill has revised General Fund revenue collections to $32.2 billion from the estimates included in Chapter 725, Acts of Assembly, which is largely attributed to higher than anticipated personal income tax collections. These revise numbers can be found on the budget 101 page.
Program / Policy Highlights
- Individual income tax rates
| Tax Rate | Taxable Income Bracket |
|---|---|
| 2% | $0 to $3,000 |
| 3% | $3001 to $5,000 |
| 5% | $5,001 to $17,000 |
| 5.75% | $17,001 and up |
- Sales tax rates
A portion of sales tax collections are distributed to the general fund. The remainder is provided to localities and the Commonwealth Transportation Fund.
The base sales tax rate is 5.3%. In certain localities there is an additional sales tax to support regional transportation or tourism efforts.
| Rate | Purpose |
|---|---|
| 2.025% | General fund |
| 1.375% | General fund (dedicated to K-12) |
| 0.9% | Commonwealth Transportation Fund |
| 1.0% | Local sales tax |
- Corporate income tax rate
The corporate income tax rate is 6%
Reports and Presentations
Resources and Deep Dives
Staff Contact
