summary
Introduced
11/17/2025
11/17/2025
In Committee
11/17/2025
11/17/2025
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Income tax; standard deduction and earned income tax credit. Removes the sunset from and makes permanent the standard deduction amounts of $8,750 for single individuals and $17,500 for married individuals filing jointly. Under current law, the standard deduction is scheduled to revert to $3,000 for single individuals and $6,000 for married individuals filing jointly after taxable year 2026. The bill also removes the sunset from and makes permanent the increase in Virginia's refundable earned income tax credit from 15 percent to 20 percent of the allowable federal earned income tax credit. Under current law, the Virginia refundable earned income tax credit expires in taxable year 2027 and Virginia's nonrefundable earned income tax credit, which has no expiration date, is equal to 20 percent of the federal credit.
AI Summary
This bill makes permanent two key tax provisions in Virginia that were previously set to expire. First, it removes the sunset provision on the standard deduction, maintaining the higher amounts of $8,750 for single individuals and $17,500 for married individuals filing jointly, instead of reverting to the lower amounts of $3,000 and $6,000 respectively after 2026. Second, the bill makes permanent the increase in Virginia's refundable earned income tax credit (EITC) from 15 percent to 20 percent of the federal EITC. The earned income tax credit is a tax benefit designed to provide financial support to low to moderate-income working individuals and families by reducing their tax liability or providing a refund. Currently, the state's refundable EITC was scheduled to expire in 2027, but this bill would make the 20 percent rate a permanent feature of Virginia's tax code, helping to provide ongoing financial relief to eligible taxpayers.
Committee Categories
Budget and Finance
Sponsors (19)
David Suetterlein (R)*,
Tammy Brankley Mulchi (R),
Luther Cifers (R),
Bill DeSteph (R),
J.D. Diggs (R),
Tara Durant (R),
Timmy French (R),
Travis Hackworth (R),
Chris Head (R),
Emily Jordan (R),
Ryan McDougle (R),
Christie New Craig (R),
Mark Obenshain (R),
Mark Peake (R),
Todd Pillion (R),
Bryce Reeves (R),
William Stanley (R),
Richard Stuart (R),
Glen Sturtevant (R),
Last Action
Continued to next session in Finance and Appropriations (9-Y 5-N) (on 01/20/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20261/SB7 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/17/2026 10:20 am) | https://lis.blob.core.windows.net/files/1089571.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/SB7/text/SB7 |
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