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.

Review this updated list of bills, which includes several pages of new bills.  Many bills originally proposed have already been killed, and all remaining have been assigned to a committee for review.

Updated list of bills

Friday, Jan. 31, 2025, is the due date for submitting 2024 withholding records, including W-2 and 1099 forms. Issuers of 1099 documents can find specifications in our W-2/1099 guide for web upload.  Filing Options There are two free online filing options available to help you submit withholding records electronically:    eForms, a fast and free way to file and pay state taxes online; and Web Upload, which allows you to file and pay employer withholding and income tax statements. We also accept corrected W-2s (or “W-2Cs”) for Tax Year 2021 and beyond. Use this form to update or change wage or withholding data. For Tax Year 2020 and prior years, payroll providers and employers will need to submit written copies of updated W-2s. The authentication process (for both eForms and Web Upload) works the same way for W-2Cs and W-2s, so taxpayers should be prepared to enter requested withholding info to be authenticated. More information about the Withholding Tax Deadline Visit the Virginia Tax website for more information, or call the Virginia Tax Business Customer Service team at 804.367.8037.

A total of 82 tax-related bills were submitted to the General Assembly during the pre-filing period for the 2025 session.  We will catch you up on how these bills are faring as we go through the Session.

If there is one you are particularly interested in, you can visit the General Assembly website anytime and enter the bill number to track its progress.

Review the full list.

In November, we released our 2024 Update for Tax Professionals presentation. As we approach the upcoming individual income tax filing season, watch this quick video for highlights of changes that impact Tax Year 2024 returns, and more.  

In case you missed it, you can find the full 2024 presentation for tax professionals by clicking the button below. 

View the full length presentation If you have additional questions, go to tax.virginia.gov or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.