As a reminder, we're moving to a new, integrated tax administration platform. This will be a 4-year implementation process, with different taxes moving to our new, modernized Online Services platform each year. Businesses and business tax professionals will see the changes first this September.

What to Expect this Fall

Businesses and business tax professionals will be able to use our new Online Services platform on September 8, 2026. If you currently have an Online Services for Businesses (iFile) account with us, you’ll be able to transition your existing online account to our new Online Services platform to file and pay the following taxes after Labor Day weekend:

• Sales taxes
• Employer withholding taxes
• Vending machine dealer’s taxes
• Digital media fees
• Tire recycling fees

If you currently use an Online Services for Businesses account (iFile) to manage the above taxes, you’ll need to start using our new Online Services platform by November 9, 2026.

You can continue to use Web Upload (bulk tax filing) and eForms as normal after this transition.

After September 8, the new Online Services platform should also be used to: 

• Register a new business
• Make changes to Virginia Tax business accounts
• Make payments on bills businesses have received from us

Labor Day Weekend Scheduled Outage

To prepare for the release of our new Online Services platform, our online filing and payment applications will be temporarily unavailable starting Saturday, September 5. Services will be restored on Tuesday, September 8, at 7:00am. 

During this scheduled outage, you will not be able to make tax payments, file a return, or check your refund status on our website. Individual and business taxpayers who planned to use our filing and payment services during Labor Day weekend should complete all transactions before September 5. If taxpayers have a payment already scheduled over Labor Day weekend, it will be considered timely based on the scheduled payment date.

Other Things to Know

• If you use an ACH debit block, before making payments through the new Online Services platform, you'll need to add our new Company ID to your ACH debit block. Visit tax.virginia.gov/debit-block for instructions.
• As we prepare for the transition to our new Online Services platform, processing for sales and withholding returns and payments will be temporarily delayed starting August 27. If a taxpayer makes a payment between August 27 and Labor Day weekend, they will not see the funds leave their bank account until the week of September 8. All returns and payments will be considered timely based on the date they were scheduled.

We appreciate your patience as we modernize our systems

Visit tax.virginia.gov/modernize for more details about this transition and continue to monitor emails from us. We'll share updates and additional resources with you to help with the transition in the weeks ahead.

We're moving to a new, integrated tax administration platform. This will be a 4-year implementation process, with different taxes moving to our new, modernized Online Services platform each year. We'll be maintaining multiple systems for a few years. Our goal is to minimize disruptions during this transition as we improve and modernize our systems.

Business taxes will be impacted first

Businesses will be able to begin the transition to the new Online Services platform in September. Tax professionals with an existing tax preparer online account will also be able to transition their account to the new platform using their current credentials.

Starting November 9, businesses and tax professionals will no longer be able to file and pay certain taxes, like sales & use and withholding taxes, in our existing online services platform (iFile). If your business clients are impacted by these changes, we encourage you to start using the new Online Services platform once it is available in September to get used to the new system.

What's coming later

Once we've moved sales and withholding taxes to the new platform, we'll begin transitioning other taxes.

Later rollouts will include:

• Corporate income tax
• Pass-through entity income tax (PTE)
• Individual income tax
• Other miscellaneous taxes

Visit tax.virginia.gov/modernize for more details about this transition, and continue to monitor emails from us. We'll share updates and additional resources with you in the months ahead. 

Virginia's interest rates will change for the third quarter of 2026.

Federal rates for the third quarter will be 7% for tax underpayments (assessments) and 7% for tax overpayments (refunds) by noncorporate taxpayers. Accordingly, the Virginia rates for the second quarter of 2026 will be 9% for tax underpayments (assessments) and 9% for tax overpayments (refunds). 

Details about the interest rates for the third quarter of 2026 can be found in Tax Bulletin 26-3.

Beginning this summer, businesses will no longer be able to link their Virginia Tax and Virginia Employment Commission (VEC) accounts. If your accounts are currently linked, they will be uncoupled.

How this impacts your VEC account

When this happens, employers will no longer manage their unemployment insurance tax through their Virginia Business Online Services account (iFile). Log into the VEC website using ID.me to manage your unemployment insurance tax. This impacts your 3rd quarter unemployment insurance, but you can make the change now. Visit the VEC website for more information.

How this impacts your Virginia Tax Business Online Services account

Beginning August 1, you will no longer log into your Virginia Tax Business Online Services account with your VEC account number. You will need to log into your account using your federal employer identification number (FEIN).  

Virginia's Rolling Conformity to the Internal Revenue Code Replaced with a Fixed Date of December 31, 2025 

During the 2026 General Assembly Session, the 2026 Amendments to the 2025 Appropriation Act replaced Virginia’s rolling conformity to the IRC with a fixed conformity date of December 31, 2025.

About the legislation

• Virginia will continue to automatically conform to any federal tax law amendment that extends the expiration date of a federal tax provision to which Virginia conforms or has previously conformed.
• The legislation allows Virginia to conform to most of the provisions of the 2025 federal Budget Reconciliation Act (P.L. 119-21) and decreases Virginia’s deduction for disallowed business interest beginning in Tax Year 2025. 

For more information, including details on new and existing exceptions to the IRC, view the Tax Bulletin 26-1 at:  www.tax.virginia.gov/tb-26-1-date-of-irc-conformity-advanced 

View Tax Bulletin

Virginia's interest rates will remain the same for the fourth quarter of 2025

Virginia's interest rates will remain the same for the fourth quarter of 2025.

Federal rates for the fourth quarter of 2025 will be 7% for tax underpayments (assessments) and 7% for tax overpayments (refunds) by noncorporate taxpayers. Accordingly, the Virginia rates for the fourth quarter of 2025 will be 9% for tax underpayments (assessments) and 9% for tax overpayments (refunds). 

Details about the interest rates for the fourth quarter of 2025 can be found in Tax Bulletin 25-4.

Virginia's interest rates will remain the same for the third quarter of 2025

Virginia's interest rates will remain the same for the third quarter of 2025. State and certain local interest rates are subject to change every quarter due to changes in federal rates established pursuant to Internal Revenue Code (“IRC”) § 6621. 

Federal rates for the third quarter of 2025 will be 7% for tax underpayments (assessments) and 7% for tax overpayments (refunds) by noncorporate taxpayers. Accordingly, the Virginia rates for the third quarter of 2025 will be 9% for tax underpayments (assessments) and 9% for tax overpayments (refunds). 

Details about the interest rates for the third quarter of 2025 can be found in Tax Bulletin 25-3.

View Tax Bulletin

The Legislative Summary provides an overview of state and local tax laws passed this year. It covers:

• State taxes administered by Virginia Tax, and
• Local taxes Virginia Tax helps administer, or on which Virginia Tax provides advisory assistance.

Legislation affecting taxes administered by other state agencies is generally not included.

Effective dates of the laws vary and are noted in each description.

The Summary is intended to provide a brief overview for informational purposes only, and does replace actual state laws, local ordinances, or tax regulations. 

View the Legislative Summary

Virginia's interest rates will remain the same for the second quarter of 2025. State and certain local interest rates are subject to change every quarter due to changes in federal rates established pursuant to Internal Revenue Code (“IRC”) § 6621. 

Federal rates for the second quarter of 2025 will be 7% for tax underpayments (assessments) and 7% for tax overpayments (refunds) by noncorporate taxpayers. Accordingly, the Virginia rates for the second quarter of 2025 will be 9% for tax underpayments (assessments) and 9% for tax overpayments (refunds). 

Details about the interest rates for the second quarter of 2025 can be found in Tax Bulletin 25-1.

View Tax Bulletin

To review a final list of tax-related bills introduced during this session, and their final status, click here.