Employer Withholding Tax Calculator

Use the withholding tax calculator to compute the amount of tax to be withheld from each of your employees' wages. This withholding formula is effective 01/01/2008.

How Virginia Withholding Tax is Calculated

1. G x P - ($3000+ (E1 x 930) + (E2 x 800)) = T

2. Calculate W as follows:

   If T is:		W is:
   Not over $3,000		2% of T
   Over	But Not Over	Then
   $3,000	$5,000	$60 + (3% of excess over $3,000)
   $5,000	$17,000	$120 + (5% of excess over $5,000)
   $17,000		$720 + (5.75% of excess over $17,000)

3. W / P = WH

   Example

   John is married, with three dependent children. His spouse is blind. He claims a total of 6 exemptions:

   - 5 personal and dependent exemptions; one for himself, his wife, and one for each of his three children ( E1 exemptions); and

   - 1 additional exemption for "blind" for his spouse (E2 exemption).

   John is paid on a semimonthly basis, and his gross wages for this pay period were $2500.

   1. G x P - ($3000+ (E1 x 930) + (E2 x 800)) = T

      2500*24 - [3,000 + (5*930) +(1*800)]= T
      60,000 - [3000+4650+800] = T
      60,000 - 8450 = 51550

   2. W is $720 + 5.75% of amount over $17,000 ($51,550 - $17,000 = $34,550)

      5.75% of $34,550 = $1,986.63
      $720 + $1,986.63 = $2706.63

   3. W / P = WH

      $2,706.63 ÷ 24 = $112.78
      Tax to be withheld per pay period is $112.78

Last Updated 8/15/2011 14:35