Several new state laws go into effect beginning July 1, 2025. Some highlights include:
Increased Standard Deduction
Beginning with 2025 Virginia individual income tax returns, the standard deduction will increase from $8,500 to $8,750 for single filers and from $17,000 to $17,500 for married couples filing jointly.
Refundable Virginia Earned Income Tax Credit
Beginning with 2025 Virginia income tax returns, the Virginia refundable earned income tax credit (EITC) will increase from 15% to 20% of your federal EITC.
Firearm Safety Device Tax Credit Expansion
The tax credit for firearms safety devices now applies to eligible firearms safety devices purchased from a commercial retailer. It previously only applied when they were purchased from a federally licensed firearms dealer. For details on what devices qualify and to apply, visit Firearm Safety Device Credit.
For additional information and a complete list of state and local tax laws passed this year, please see the 2025 Legislative Summary.