Virginia Mileage Deduction 2026

Virginia has progressive income tax with a top rate of 5.75%. At 15,000 business miles, you save roughly $625 in state taxes on top of about $4,056 in federal income and self-employment tax savings. That is about $4,681 back for keeping a mileage log. Virginia also allows taxpayers to deduct certain state taxes paid from their state taxable income, which can create an additional layer of savings beyond what most states offer.

For 2025 and 2026 only, Virginia's refundable Earned Income Tax Credit jumps from 15% to 20% of the federal credit. If you qualify, that is a meaningful bump. Virginia also raised its estimated tax payment threshold from $150 to $1,000, which means self-employed filers with small quarterly liabilities no longer need to make estimated payments at all.

How to File

Deduct your business miles on federal Schedule C, Line 9 at 72.5¢/mile. Virginia uses your federal adjusted gross income as the starting point, so the mileage deduction flows through to your state return automatically. Keep a mileage log with the date, destination, purpose, and miles for each trip. If you expect to owe more than $1,000 in state taxes, make quarterly estimated payments.

The state does not require employers to reimburse mileage. If you drive for work, tracking is the only way to get the money back.

FAQ

Does Virginia require mileage reimbursement?

No. Virginia has no state law requiring private employers to reimburse mileage.

Does my mileage deduction reduce Virginia state taxes?

Yes. Virginia uses your federal adjusted gross income as the starting point. Your Schedule C mileage deduction reduces that number, which directly reduces your state tax.

Can W-2 employees deduct mileage in Virginia?

No. The mileage deduction for W-2 employees was permanently eliminated under the One Big Beautiful Bill. If your employer does not reimburse, you have no tax remedy.

Track every business mile. Start free with TruMile →