Virginia 1099 taxes: a 2026 guide for the self-employed
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Krislyn ChanKrislyn is Chief Growth Officer at Keeper. At Keeper, she strives to make expert-level tax strategies that used to require a traditional CPA accessible to all. Prior to Keeper, she was at Curology, where she helped bring custom, prescription-grade skincare out of the dermatologist's office to millions of faces.
Key takeaways
- 1099 income in Virginia is subject to three taxes: 15.3% federal self-employment tax, 10% to 37% federal income tax, and 2% to 5.75% Virginia income tax.
- Set aside 25–30% of your profit in a high-yield savings account, so the money earns interest until your tax payments are due. For a single filer with no other income, total tax runs from 21.9% of profit at $40,000 to 31.7% at $200,000.
- Most of your profit is taxed at Virginia’s top rate. The 5.75% rate starts at $17,000 of taxable income, and that hasn’t changed since 1990.
- Virginia estimated payments now start at $1,000. Starting in 2026, you only have to make quarterly estimated tax payments to Virginia if you expect to owe more than $1,000 in Virginia tax (it used to be $150). The first payment is due May 1, not April 15.
- Your city or county may charge a business license tax. Virginia has no local income tax, but many localities charge a business license tax (BPOL) based on your gross receipts.
How much tax do 1099 workers pay in Virginia?
These tables show estimated 2026 tax on self-employment profit, the amount left after business expenses. They assume this is your only income, you take the standard deduction, and you have no kids or tax credits.
Single filer, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Virginia income tax |
|---|---|---|---|---|---|
| $40,000 | $8,750 | 21.9% | $5,652 | $1,775 | $1,323 |
| $60,000 | $14,429 | 24.0% | $8,478 | $3,559 | $2,392 |
| $80,000 | $20,108 | 25.1% | $11,304 | $5,344 | $3,461 |
| $100,000 | $26,894 | 26.9% | $14,130 | $8,235 | $4,530 |
| $150,000 | $44,809 | 29.9% | $21,194 | $16,413 | $7,202 |
| $200,000 | $63,305 | 31.7% | $28,234 | $25,196 | $9,874 |
Married filing jointly, one self-employed spouse, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Virginia income tax |
|---|---|---|---|---|---|
| $40,000 | $6,817 | 17.0% | $5,652 | $398 | $767 |
| $60,000 | $12,198 | 20.3% | $8,478 | $1,885 | $1,836 |
| $80,000 | $17,758 | 22.2% | $11,304 | $3,550 | $2,904 |
| $100,000 | $23,437 | 23.4% | $14,130 | $5,335 | $3,973 |
| $150,000 | $37,635 | 25.1% | $21,194 | $9,795 | $6,645 |
| $200,000 | $54,024 | 27.0% | $28,234 | $16,472 | $9,318 |
How Virginia taxes 1099 income
If you’re a freelancer, independent contractor, gig worker, or solo business owner in Virginia, your net profit (1099 income minus business expenses) is taxed three ways:
- Federal self-employment tax: 15.3% on most of your profit (92.35% of it). That’s 12.4% for Social Security, on earnings up to $184,500 in 2026, plus 2.9% for Medicare with no cap. It replaces the payroll taxes an employer would split with you. Estimate it with the self-employment tax calculator.
- Federal income tax: 10% to 37% on what’s left after three deductions: the $16,100 standard deduction ($32,200 married filing jointly), half of your self-employment tax, and the 20% QBI deduction.
- Virginia income tax: 2% to 5.75% on your profit minus half of your self-employment tax, an $8,750 standard deduction ($17,500 married filing jointly), and a $930 exemption for you and your spouse. You report it on Form 760.
What’s different about Virginia
- Almost everything is taxed at 5.75%. Virginia’s brackets stop at $17,000 and aren’t adjusted for inflation, so every dollar of taxable income above $17,000 is taxed at the top rate. At $80,000 of profit, about 74% of the income Virginia taxes falls in the 5.75% bracket.
- No QBI deduction. The IRS lets you deduct up to 20% of your business profit. Virginia doesn’t. At $80,000 of profit, that’s $11,650 you deduct on your federal return but still pay Virginia tax on.
- Some federal deductions carry over. Because Virginia starts with the income on your federal return, three deductions you take there also lower your Virginia tax: half of your self-employment tax, self-employed health insurance premiums, and self-employed 401(k) contributions.
- No local income tax, but maybe a business license tax. Many Virginia cities and counties charge a business license tax (BPOL) on businesses in their area, usually a small flat fee at lower revenue and a small percentage of gross receipts above that. Rules vary, so check with your local commissioner of the revenue.
Because the top rate kicks in so early, a self-employed person in Virginia at $80,000 pays $20,108: about $848 more than in California, where lower rates cover more of your income, and $3,461 more than in Texas, which has no income tax.
Virginia income tax rates for 2026
Virginia uses the same rates and income ranges for every filing status, and they haven’t changed since 1990.
| Rate | Single or married filing separately | Married filing jointly |
|---|---|---|
| 2% | $0 – $3,000 | $0 – $3,000 |
| 3% | $3,000 – $5,000 | $3,000 – $5,000 |
| 5% | $5,000 – $17,000 | $5,000 – $17,000 |
| 5.75% | Over $17,000 | Over $17,000 |
Example: Virginia tax on $80,000 of 1099 income
Here’s the math for a single self-employed person in Richmond with $80,000 of profit and no other income.
| Step | Amount |
|---|---|
| Self-employment tax: $80,000 × 92.35% × 15.3% | $11,304 |
| $80,000 minus half of self-employment tax | $74,348 |
| Income the IRS taxes: $74,348 minus the $16,100 standard deduction and $11,650 QBI deduction | $46,599 |
| Federal income tax | $5,344 |
| Income Virginia taxes: $74,348 minus the $8,750 standard deduction and $930 exemption | $64,668 |
| Virginia income tax | $3,461 |
| Total 2026 tax | $20,108 (25.1%) |
Self-employment tax is the biggest piece. Every dollar you write off as a business expense lowers all three taxes, since your self-employment tax, federal income tax, and Virginia income tax are all based on your profit after expenses.
What tax write-offs can I claim?
How to lower your Virginia 1099 tax bill
At $80,000 of profit, every $1,000 of business expenses you deduct cuts about $284 from your total tax. Common write-offs for self-employed people in Virginia include:
- Your phone and internet, for the share you use for work
- Car expenses, using a set rate per mile or your actual costs (compare the two)
- A home office, if you use part of your home regularly and only for work (estimate yours)
- Software, equipment, and supplies you buy for your business
- Health insurance premiums you pay as a self-employed person
- Retirement contributions to a SEP-IRA or Solo 401(k)
Most of these are small purchases spread across a year of bank and card statements, which is where they get missed. See the full list of tax write-offs for self-employed people.
Track and claim every eligible deduction with Keeper
Keeper scans your accounts for write-offs and files your return — with tax pros reviewing every one.
Try it freeVirginia estimated tax payments
If you expect to owe more than $1,000 in Virginia tax for 2026, beyond any tax already taken out of a paycheck, make estimated payments to Virginia Tax online or with Form 760ES. That threshold went up from $150 this year, so many part-time self-employed people who used to pay quarterly no longer have to. Each payment is a quarter of your Virginia tax:
| Payment | Share of your Virginia tax | Due date |
|---|---|---|
| 1st | 25% | May 1, 2026 |
| 2nd | 25% | June 15, 2026 |
| 3rd | 25% | September 15, 2026 |
| 4th | 25% | January 15, 2027 |
- Federal payments are separate: you pay the IRS with Form 1040-ES, and its first payment is due April 15, two weeks before Virginia’s.
- To avoid a penalty for paying too little, pay at least 90% of this year’s Virginia tax or 100% of last year’s, whichever is less. Unlike the IRS, Virginia doesn’t raise that to 110% for higher earners.
- Your Virginia return is due May 1, 2027, two weeks after the federal deadline.
Get your payment amounts with the Virginia quarterly tax calculator.
Should you form an LLC or S corp in Virginia?
You don’t need one to work as an independent contractor. If you work for yourself without forming a business, you report 1099 income on Schedule C, part of your regular tax return, and pay the taxes above. Virginia is one of the cheaper states to set one up:
- LLCs cost $100 to form and $50 a year to keep active (the annual registration fee).
- S corps can make sense once your profit is around $80,000, when the self-employment tax savings get significant. You pay yourself a reasonable salary and take the rest as profit payouts (distributions) that aren’t subject to self-employment tax. Virginia doesn’t charge S corps a minimum tax, but the S corp files a Virginia return (Form 502) each year.
Run the numbers for your income to see what you’d save.
Do self-employed people in Virginia charge sales tax?
Usually not. Virginia sales tax applies to physical goods, not to most services like writing, design, consulting, and bookkeeping. If you sell products, the rate is 5.3% in most of the state, 6% in Northern Virginia, Hampton Roads, and the Richmond area, and up to 7% around Williamsburg.
10 sources
- 2026 Form 760ES: estimated tax vouchers and instructions · tax.virginia.gov
- New Virginia tax laws (2026 standard deduction) · tax.virginia.gov
- Code of Virginia § 58.1-320: individual income tax rates · law.lis.virginia.gov
- Code of Virginia § 58.1-3703: local business license taxes · law.lis.virginia.gov
- Retail sales and use tax · tax.virginia.gov
- S corporations, partnerships, and LLCs · tax.virginia.gov
- Virginia limited liability companies: forms and fees · scc.virginia.gov
- Annual registration fees · scc.virginia.gov
- IRS releases tax inflation adjustments for tax year 2026 · irs.gov
- Contribution and benefit base · ssa.gov
This article is for informational purposes only and isn’t tax, legal, or financial advice. Tax rules change and depend on your situation, so talk to a tax professional about yours.
