2025 Tax Year

Virginia Side Hustle Tax Calculator

Calculate your Virginia state tax (5.75%), federal tax, and self-employment tax on 1099 income.

VA5.75%

8.6 million residents

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2025 rates

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Last updated: January 2026 · Data from IRS Rev Proc 2024-40

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State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Virginia side hustlers face a progressive state income tax with rates from 2% to 5.75%, with the top rate kicking in at just $17,000 of taxable income—meaning most freelancers will pay the maximum 5.75% rate. The Commonwealth has a thriving gig economy centered around Northern Virginia's tech corridor and Richmond's startup scene.

Virginia Tax Guide

How Side Hustle Taxes Work in Virginia

Virginia uses a progressive income tax system with four brackets:

**Virginia state tax rates (2025):** - 2% on income up to $3,000 - 3% on $3,001 - $5,000 - 5% on $5,001 - $17,000 - 5.75% on income over $17,000

**No local income taxes:** Virginia localities do not levy income taxes. Cities like Arlington, Alexandria, and Richmond don't add additional tax on top of the state rate.

Example

What Virginia Side Hustlers Owe

Let's say you're a single filer in Arlington with a $65,000 W-2 job and $14,000 in side hustle income from freelance consulting, with $2,000 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $12,000 - Federal SE tax (15.3% of 92.35%): ~$1,697 - Federal income tax on side income: ~$2,640 (22% bracket) - Virginia state tax (5.75%): ~$690 - **Total additional tax: ~$5,027**

Important Dates

Virginia Tax Deadlines 2025

Virginia estimated tax deadlines: - **Q1**: May 1, 2025 (note: not April 15) - **Q2**: June 15, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use Form 760-ES for Virginia quarterly estimated payments.

Save Money

Common Deductions for Virginia Freelancers

Virginia freelancers should maximize deductions since most will pay the top 5.75% rate on side hustle income. **Home office expenses**: Claim dedicated business space using simplified ($5/sq ft) or actual expense method—especially valuable in high-cost Northern Virginia. **Business mileage**: 67 cents/mile for 2025; critical for those traveling to client sites in the DC metro area. **Equipment and software**: Computers, professional tools, and business software; Virginia follows federal Section 179 treatment. **Professional development**: Courses, certifications, and conferences that improve your skills are deductible. **Health insurance premiums**: Self-employed individuals can deduct 100% of health, dental, and vision insurance. **Retirement contributions**: SEP-IRAs and Solo 401(k)s reduce both federal and Virginia taxable income—saving you at your federal rate plus 5.75%. **Marketing and advertising**: Website costs, business cards, and promotional materials qualify. Virginia starts with federal AGI, so most federal Schedule C deductions automatically reduce your VA taxes. This conformity makes tax planning straightforward for Virginia freelancers.

Common Questions

Virginia Side Hustle Tax FAQ

What is Virginia's tax rate on side hustle income?

Virginia has progressive rates from 2% to 5.75%, but the top rate applies to all income over $17,000. Most side hustlers pay the full 5.75% rate on their freelance earnings.

Does Northern Virginia have additional income taxes?

No, Virginia localities including Arlington, Fairfax, and Alexandria do not levy local income taxes. You only pay the state rate.

When are Virginia estimated taxes due?

Virginia's Q1 deadline is May 1 (not April 15 like federal). Other deadlines are June 15, September 15, and January 15.

Do I need to register my side hustle in Virginia?

Sole proprietors using their legal name don't need state registration. If using a business name (DBA), file a Fictitious Name Certificate with your local circuit court. LLCs must register with the Virginia State Corporation Commission. Many localities require a Business License.

Does Virginia have a BPOL tax on side hustles?

Virginia localities may impose a Business, Professional, and Occupational License (BPOL) tax based on gross receipts. Rates and thresholds vary by locality—check with your city or county for specific requirements. This is separate from income tax.

Can I deduct retirement contributions on Virginia taxes?

Yes, SEP-IRA and Solo 401(k) contributions reduce your federal AGI, which Virginia uses as its starting point. Every dollar contributed saves you at your federal rate plus 5.75% in Virginia taxes.

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