Virginia Lawmakers Pass Boosted Tax Deduction, One-Time Rebate

The Virginia General Assembly passed budget amendments raising the state’s standard deduction and the earned income tax credit.

The adjustments, approved by state lawmakers Feb. 22, would raise the standard deduction by $250 for individuals, to $8,750, and $500 for married taxpayers filing jointly, to $17,500. It would also grant one-time income tax rebates of $200 for single filers and $400 for married filers, and boost the refundable portion of the earned income tax credit to 20% of the federal EITC, from 15%.

The changes to the state’s two-year budget plan, which lasts through June 30, 2026, now head ...