Virginia Mileage Deduction 2026

Virginia has progressive income tax with a top rate of 5.75%. At 15,000 business miles, you save roughly $640 in state taxes on top of about $4,154 in federal income and self-employment tax savings. That is about $4,794 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

Claim business mileage on federal Schedule C, Line 9: 72.5¢ per mile for trips before 1 July 2026, 76¢ per mile after. Virginia's return starts from your federal AGI, so once the deduction lowers your federal number, it automatically lowers your Virginia taxable income too, with no separate state form for it. Keep a mileage log covering the date, destination, purpose, and miles for each trip in case Virginia Tax or the IRS asks you to substantiate it. Quarterly estimated payments kick in once you expect to owe the state more than $1,000 for the year.

Virginia does not require private employers to reimburse mileage. If your job doesn't come with a reimbursement policy, your own tracked log is what gets that money back through the tax deduction instead.

FAQ

Does Virginia require mileage reimbursement?

No. Virginia has no law forcing private employers to reimburse mileage.

Does my mileage deduction reduce Virginia state taxes?

Yes. Virginia taxable income starts from your federal AGI, so a Schedule C mileage deduction that lowers your federal number lowers your Virginia number right along with it.

Can W-2 employees deduct mileage in Virginia?

No. The One Big Beautiful Bill eliminated the unreimbursed employee mileage deduction for W-2 filers for good. No employer reimbursement means no tax fix, federal or state.

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