Virginia Rental Property Tax Overview
Virginia imposes a state income tax of 2-5.75% on rental income, in addition to federal income taxes. As a Virginia landlord, you'll need to report rental income on both your federal return (IRS Schedule E) and your VA state return. The state tax is calculated on your net rental income after deductions, and the same deductions you claim on Schedule E generally apply at the state level.
Property taxes in Virginia average 0.82%, which is close to the national average of approximately 1.1%. Property taxes are fully deductible on IRS Schedule E, Line 16. Popular rental markets in Virginia include Virginia Beach, Arlington, Richmond, Alexandria.
Deductible Rental Property Expenses in Virginia
The following expenses are deductible on IRS Schedule E for your Virginia rental properties. RentalReportLab automatically maps each expense to the correct Schedule E line item.
| Expense | Schedule E Line | Notes |
|---|---|---|
| Advertising / Platform Fees | Line 5 | Airbnb/VRBO fees, listing costs |
| Auto & Travel | Line 6 | Mileage to property for management |
| Cleaning & Maintenance | Line 7 | Regular upkeep, cleaning between tenants |
| Insurance | Line 9 | Landlord policy, liability, umbrella |
| Legal & Professional | Line 10 | Attorney, CPA, property manager fees |
| Management Fees | Line 11 | Property management company (8-25%) |
| Mortgage Interest | Line 12 | Interest portion only (not principal) |
| Repairs | Line 14 | Fixes that restore condition (not improve) |
| Supplies | Line 15 | Hardware, cleaning supplies, keys |
| Property Taxes | Line 16 | Virginia avg: 0.82% |
| Utilities | Line 17 | If landlord-paid: electric, gas, water, internet |
| Depreciation | Line 18 | 27.5-year straight-line (building only) |
Filing Schedule E for Virginia Properties
As a Virginia landlord, you report rental income and expenses on IRS Schedule E (Form 1040). Each property is listed separately on Schedule E with its address and rental days. Your net rental income (or loss) flows to your Form 1040. You'll also need to report this income on your VA state return. Most Virginia tax forms reference your federal Schedule E amounts.
RentalReportLab generates a Schedule E-mapped P&L report that organizes your income and expenses exactly as they appear on the form. Print it, hand it to your CPA, and you're done. Or share a read-only link directly with your accountant.
Important Deadlines for Virginia Landlords
- •April 15, 2026: Federal tax return deadline (IRS Schedule E)
- •April 15, 2026: VA state income tax return deadline (most states align with federal)
- •October 15, 2026: Extended federal tax return deadline (if filed for extension)
- •January 31, 2027: Send 1099-NEC to contractors paid $600+ during 2026
This guide is for informational purposes only and does not constitute tax or legal advice. Tax laws change frequently. Consult a qualified CPA or tax professional for guidance specific to your Virginia rental properties.