Virginia Tax Department Issues Notice Updating SALT Conformity Guidance

The Virginia Department of Taxation issued a notice providing an important update containing changes to the original state and local tax (SALT) conformity guidance provided on March 31. The notice states that 2026 Virginia legislation provides that Virginia generally conforms to federal tax law as of Dec. 31, 2025, including conforming to federal SALT cap amounts used in the Schedule A itemized deductions computation. For the 2025 tax year, the amount on Line 5a of Virginia Schedule A should be limited to $40,000 (or $20,000 if married filing separately), or the phased-down amount based on the modified adjusted gross income ...