Self-employed in Virginia: taxes and retirement for 2026

What consultants, freelancers, content creators, entrepreneurs, gig workers, tipped workers and tradespeople in Virginia need to know this year: Virginia income and estimated tax rules, and how to save for retirement without an employer plan.

Guides for Virginia

Consultants in Virginia Freelancers in Virginia Content Creators in Virginia Entrepreneurs in Virginia Gig Workers in Virginia Bartenders & Servers in Virginia Construction & Trades in Virginia

Virginia rules that apply

State income tax (2026): Virginia has a graduated state income tax for 2026: 2% to 5.75% (top rate starts at $17,000 for single filers). Rates are percentages and brackets are the same for all filing statuses: 2% on the first $3,000, 3% from $3,000 to $5,000, 5% from $5,000 to $17,000, and 5.75% over $17,000.
State estimated tax: Starting with 2026, you must make estimated payments (or have more withheld) if your Virginia tax after withholding and credits is expected to be more than $1,000. Single filers with expected Virginia AGI under $11,950 are exempt. May 1, June 15 and September 15, 2026, and January 15, 2027; the first installment is due May 1, not April 15. Qualifying farmers, fishermen and merchant seamen can make a single payment by January 15, 2027, or skip estimates by filing and paying in full by March 1, 2027. Form 760ES.
Local BPOL license tax (capped by Va. Code 58.1-3706): Many Virginia cities and counties tax business gross receipts under a BPOL license. State law bars the tax for businesses under $100,000 in gross receipts in localities over 50,000 people, or under $50,000 in localities of 25,000 to 50,000, although a license fee may still apply. Rates are generally capped at 58 cents per $100 for financial, real estate and professional services, 36 cents for repair, personal and business services, 20 cents for retail and 16 cents for contractors; some localities keep higher rates they had in 1978.
Minimum wage (2026): $12.77 an hour; tipped cash wage $2.13 an hour. $12.77 from January 1 to December 31, 2026. 2026 amendments to Va. Code 40.1-28.10 raise it to $13.75 on January 1, 2027, and $15.00 on January 1, 2028, with yearly inflation adjustments from 2029. Tipped employees (more than $30 a month in tips, Va. Code 40.1-28.9) can be paid $2.13 an hour if tips bring them to the state minimum (U.S. DOL table, https://www.dol.gov/agencies/whd/state/minimum-wage/tipped).
Presumption of employee status (Va. Code 58.1-1900): Someone paid to perform services is presumed to be an employee unless the worker or the business shows they are an independent contractor. Virginia Tax decides this using IRS guidelines.
Private lawsuit for misclassification (Va. Code 40.1-28.7:7): A worker who was wrongly classified as a contractor can sue an employer that knew about the misclassification, within three years, for wage-law damages and other relief. Workers are presumed to be employees unless the employer shows contractor status under IRS guidelines.
State retirement program: RetirePath Virginia is live. It is built around W-2 employers and does not cover 1099 contractors through the employer mandate; self-employed residents can enroll on their own.

Cities in Virginia

Virginia Beach Chesapeake Richmond

Questions

Do self-employed people in Virginia pay state income tax?

Virginia has a graduated state income tax for 2026: 2% to 5.75% (top rate starts at $17,000 for single filers). Rates are percentages and brackets are the same for all filing statuses: 2% on the first $3,000, 3% from $3,000 to $5,000, 5% from $5,000 to $17,000, and 5.75% over $17,000.

When are Virginia estimated tax payments due for 2026?

Starting with 2026, you must make estimated payments (or have more withheld) if your Virginia tax after withholding and credits is expected to be more than $1,000. Single filers with expected Virginia AGI under $11,950 are exempt. May 1, June 15 and September 15, 2026, and January 15, 2027; the first installment is due May 1, not April 15. Qualifying farmers, fishermen and merchant seamen can make a single payment by January 15, 2027, or skip estimates by filing and paying in full by March 1, 2027. The state form is 760ES.

Are there other Virginia taxes for self-employed self-employed people?

Local BPOL license tax (capped by Va. Code 58.1-3706): Many Virginia cities and counties tax business gross receipts under a BPOL license. State law bars the tax for businesses under $100,000 in gross receipts in localities over 50,000 people, or under $50,000 in localities of 25,000 to 50,000, although a license fee may still apply. Rates are generally capped at 58 cents per $100 for financial, real estate and professional services, 36 cents for repair, personal and business services, 20 cents for retail and 16 cents for contractors; some localities keep higher rates they had in 1978.

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Sources

Facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.