Bill > HB188

This bill establishes a new income tax bracket for taxable years beginning on or after January 1, 2026, imposing a 10 percent tax rate on income exceeding $1 million, while maintaining existing tax rates for income below that threshold. Currently, all income above $17,000 is taxed at 5.75 percent. The additional revenue generated from this new higher tax bracket will be distributed as follows: 50 percent will go to public schools for additional basic aid funding, 30 percent will be dedicated to the Child Care Subsidy Program, and 20 percent will be allocated to the Virginia Housing Trust Fund. The bill also includes technical amendments and ensures that these new funds will supplement, not replace, existing funding for these programs.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB188