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VA SB696

VA SB696
Income tax, corporate; reduction of rate.


summary

Introduced
01/14/2026
In Committee
01/14/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Regular Session

Bill Summary

Corporate income tax rate; reduction. Reduces the corporate income tax rate by 1.25 percent each taxable year from the current six percent rate until the rate equals 2.25 percent for taxable year 2028 and thereafter.

AI Summary

This bill, effective for taxable years beginning on or after January 1, 2026, reduces Virginia's corporate income tax rate, which is a tax imposed on the profits of corporations. Currently set at six percent, the rate will decrease incrementally each year: to 4.75 percent for taxable years beginning in 2026, then to 3.5 percent for taxable years beginning in 2027, and finally to 2.25 percent for taxable years beginning in 2028 and thereafter. This change applies to both corporations organized in Virginia and foreign corporations that earn income within the state.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Passed by indefinitely in Finance and Appropriations (9-Y 4-N) (on 01/28/2026)

bill text


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Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/SB696
Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/26/2026 10:52 am) https://lis.blob.core.windows.net/files/1096528.PDF
BillText https://lis.virginia.gov/bill-details/20261/SB696/text/SB696
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