Introduction

Virginia, also fondly called "Old Dominion", is a very special and unique state of USA. It is located on the East Coast of America. Its capital city is Richmond and the twelfth city is Virginia Beach. The population of this state is estimated to be 88.8 lakhs as per 2025 estimate. It ranks 12th in terms of population in USA. The total area of this state is 42,774.59 sq mi and it ranks 35th in terms of area. Virginia is a medium sized state in terms of area, neither very big nor very small. But it comes in the top 15 in terms of population because a lot of people live in Northern Virginia near D.C. Virginia, Washington D.C. It is located just south of Virginia. Its neighbors are Maryland and West Virginia to the north, North Carolina and Tennessee to the south, Kentucky to the west, and the Atlantic Ocean and Chesapeake Bay to the east. Here you'll find five distinct regions—mountains, valleys, beaches, farms, and large cities. That's why its slogan is "Virginia is for Lovers"—because every kind of lover can find something to enjoy here.

History of Virginia

Virginia was named after Queen Elizabeth I. She was called the "Virgin Queen" because she never married. Virginia’s history is quite old. Nomadic hunters are estimated to have arrived in Virginia around 17,000 years ago.

During the late Woodland period (500–1000 AD), tribes began to coalesce, and farming started, first with corn and squash. Beans and tobacco arrived from the Southwest and Mexico by the end of the period.

America's first permanent English settlement was established in Jamestown. Europeans had arrived earlier and left, but permanent settlement began here. The House of Burgesses was formed in Jamestown — America's first elected government. The foundations of democracy were laid here. That same year, the first African slaves were also brought to Virginia. Both the good and the bad of American history began here.

Center of the American Revolution — 1770s

The Declaration of Independence was signed in 1776. The document that stated "All men are created equal" was written by a Virginian, Thomas Jefferson.

America declared independence on July 4, 1776.

Last Battle of the Revolutionary War — 1781

The British army surrendered at Yorktown. General Cornwallis was defeated. The Revolutionary War effectively ended here. George Washington won.

1951: Barbara Johns, a 16-year-old girl, led a student strike against school segregation in Farmville.

This became part of the Brown v. Board of Education case, which made "separate schools for Black and White students" illegal in the U.S. in 1954.

Pentagon Attack — 2001

On 9/11, a plane crashed into the Pentagon. The Pentagon is located in Virginia, not in Washington, D.C. 184 people died.

Virginia's path is essentially America's path. Many major events in U.S. history have occurred here.

ECONOMY

Virginia's economy is very strong and diverse. GDP is $753 billion in 2025—if Virginia were a country, it would be 25th largest in the world. Virginia's economy is very strong and diverse. GDP is $753 billion in 2025—if Virginia were a country, it would be 25th largest in the world. Northern Virginia = "Internet Capital." Amazon HQ2, Google, Microsoft, and Facebook data centers. 70% of the world's internet traffic passes through it.

Median Household Income: $92,090—among the top 10 in the USA. Minimum Wage: $12.41/hour—will increase to $13.50 in 2026.

Most jobs: Northern Virginia—near D.C. Tech, govt, consulting Northern VA: Very expensive — as much as D.C. 1BR apartment $2,000. Richmond, Norfolk: Medium cost. Rural areas: Cheap, but jobs are less Problem: There is a huge difference between Northern VA and the rest of Virginia. Nova is rich, South/West Virginia has more poverty

TAXES

Income Tax

In Virginia, income tax is based on income brackets. If your income is up to $3,000, you pay 2%. If your income is between $3,000 and $5,000, the rate is 3%. If your income is between $5,001 and $17,000, the rate is 5%. For income above $17,000, the rate is 5.75%.

Sales Tax

The base sales tax rate is 5.30%. This includes 4.3% state tax + a mandatory 1% local add-on. The average total is 5.77% because some areas charge an additional 0.7%. The rate on food and groceries is lower, at only 2.5%, which is relatively low. Manufacturers and farmers in the state are exempt from tax on items such as equipment, farm supplies, and R&D equipment.

Corporate Income Tax

There is a flat 6% tax on corporate profits, which has remained unchanged since 1972. Most businesses do not pay a franchise or net-worth tax. Banks are an exception. LLCs and partnerships are "pass-through" entities — there is no tax at the company level, and owners pay personal income tax at rates of 2% to 5.75%. Other taxes are not significant.

Property Tax

Virginia does not have a state-level property tax. All property taxes are collected by local counties and cities.

Effective rate: The average is 0.78% of the value of an owner-occupied home.

This means the annual tax on a $400,000 home could range from $3,120 to $4,800, depending on location.

Fuel Tax

In Virginia, a state excise tax is levied on petrol/diesel:

Petrol: 41.6 cents per gallon.

This works out to about $1.56 per liter. A federal tax of 18.4 cents per gallon is added separately.

Diesel: 42.7 cents per gallon.

Natural gas connections for homes also incur a 5.77% sales tax + local utility tax.

This tax revenue goes toward road maintenance and transportation projects. Sales tax is not levied on petrol in Virginia.

Electricity Tax

There is no direct "state tax" on electricity, but there are 2–3 charges:

Consumption tax: $0.00155 per kWh for the first 2,500 kWh, then $0.00099 per kWh. This is a small charge.

Car Tax / Personal Property Tax

Virginia also levies an annual tax on cars. The rate is determined by the local city or county and averages 3% to 5% of the car's value. This is why Virginia is often called a "high car tax state."