Starting Jan. 1, 2020, a number of new state and local tax laws go into effect in Virginia.

Some of the changes include:

  • Reduced Sales and Use Tax on Essential Personal Hygiene Products: Effective Jan. 1, 2020, the sales tax rate in Virginia on essential personal hygiene products will be reduced to 2.5%. This includes products such as:
    • Disposable diapers (regardless of age of user);
    • Disposable incontinence pads;
    • Disposable bed sheets; and
    • Feminine hygiene products like sanitary napkins and towels and tampons.
  • Products that don’t qualify for the reduced tax rate include but aren’t limited to reusable cloth diapers, incontinence pads and undergarments, and reusable bed sheets. For more information, see Tax Bulletin 19-8.
  • Changes to Standard Deduction of Virginia Individual Income Taxes: For taxable year 2019, the standard deduction will increase to $4,500 for taxpayers filing single, or married filing separately; and $9,000 for married taxpayers filing jointly. 
  • Extension of Time to Claim the Land Preservation Tax Credit: To receive credits for land or interest in land conveyed or transferred before Jan. 1, 2020, you must apply by Dec. 31 of the third year following the recorded year of the donation. For land or interest in land conveyed or transferred on or after Jan. 1, 2020, you must apply by Dec. 31 of the second year following the recorded year of the donation. See Land Preservation Tax Credit.
  • Telework Expenses Tax Credit Expiration: You can’t claim this credit for any taxable year beginning on or after Jan. 1, 2019.
  • New Requirement for the Provision of Preparer Tax Identification Numbers: If you are an income tax professional, for taxable years beginning or after Jan. 1, 2019, state law requires you to include your Preparer Tax Identification Number (PTIN) on any returns you prepare.

For more information and a complete list of 2019 state and local tax legislation, view the 2019 Legislative Summary.