Virginia General Assembly 2026: Tax Policy Legislation to Watch

As the 2026 Virginia General Assembly session continues, the VSCPA is watching several tax policy proposals. While these bills are still evolving and may not even pass, members should be aware of key themes that may influence planning and compliance in the future.

Follow key legislative developments through our onlineBill Tracker and monitor our Voter Voice landing page for opportunities to engage when CPA voices are needed.

Sales tax expansion to services
HB 900 and HB 978 broaden Virginia’s sales tax base by extending the tax to many currently exempt personal services, although professional services (including accounting) would still be exempt. In addition, digital products and services would become subject to sales tax. If enacted, these changes could affect pricing, contracts, and compliance systems for service-based businesses operating in Virginia.

High-income ('millionaire') tax proposals
Several bills, including HB 979 and HB 1074,propose additional taxes on higher-income individuals, trusts, and estates, often targeting income above a specified threshold (commonly $1 million). These proposals typically take the form of a surtax layered onto the existing income tax structure, rather than a full rate overhaul.

Depending on bill language, these taxes could apply to pass-through income, investment income, or both — raising planning considerations for closely held business owners, high-net-worth individuals, and fiduciaries.

Investment income and fiduciary impacts
HB 378 would impose new taxes specifically on unearned income, such as capital gains, dividends, and trust or estate income. For CPAs, this raises questions around effective marginal rates, estimated payments, and added complexity for fiduciary and composite filings.

Corporate welfare tax
HB 243 would establish a new tax on certain corporations that receive significant state economic development incentives or public subsidies. The impact will depend heavily on how qualifying incentives are defined and how the tax interacts with existing credits and incentive agreements.

Why these proposals matter to CPAs

You can play a critical role in helping clients distinguish between proposals and enacted law while preparing for potential changes. Given the complexity and volume of tax legislation, we encourage you to:

• Track bill language and amendments as proposals evolve.
• Review fiscal impact statements where available.
• Focus on enacted changes rather than headlines, while still preparing clients for possible future developments.

An understanding of these proposals allows you to provide measured, informed guidance — regardless of the ultimate outcome of the legislation.

Questions or feedback? Contact Emily Walker, VSCPA vice president, advocacy & pipeline.