Quick Tax Stats:
| Tax Type | Rate / Info |
|---|---|
| Income Tax | 2% – 5.75% progressive state income tax |
| Sales Tax | 4.3% statewide base; up to ~7% combined with local surtaxes |
| Jock Tax | Virginia taxes income earned from work performed in the Commonwealth |
| Cost of Living (Range) | $80,000 – $170,000 annual for single-person moderate-to-high lifestyle (Norfolk, Richmond) |
| Average Home Price | ~$450,000 (3-bed/2-bath home in Richmond / suburban Northern VA) |
Income Tax in Virginia
Virginia imposes a progressive state income tax on earned income, with rates ranging from 2% up to 5.75% at the top marginal bracket.
This tax applies to all wages and salaries, bonuses, and all/any other gross compensation earned while domiciled in Virginia or from work performed in the Commonwealth.
For professional athletes and highly compensated individuals:
- State tax bite on contracts: A top marginal rate of 5.75% can materially reduce net earnings relative to no-income-tax states.
- Residency planning significance: Athletes domiciled in higher tax states can see their net take-home drop significantly compared with relocating to lower-tax jurisdictions.
- Jock tax interplay: Income earned in Virginia is taxed regardless of domicile, meaning even out-of-state residents owe tax on apportioned Virginia income.
Example
An MLB player earning $20 million while residing in Virginia may owe up to ~$1.15 million or more per year in state tax alone.
Compared with a no-income-tax domicile (like Florida or Texas), this represents a significant net income difference.
Because state tax is applied at point of earned income, athletes must weigh residency and contractual obligations when planning net earnings.
Sales Tax
Virginia’s base 4.3% sales tax applies to most taxable goods and services.
Local jurisdictions may add additional surtaxes, bringing combined rates in urban areas closer to ~6.5–7%.
Athletes and high-spending residents can manage sales tax impact by:
- Timing purchases to coincide with lower local rates.
- Structuring large purchases in lower combined tax districts.
- Considering tax implications when planning discretionary spending.
Example
Purchasing a $100,000 luxury vehicle in Richmond with a 7% combined sales tax would result in approximately $7,000 in sales tax. This means that the vehicle depreciates by $7,000 faster as well.
While below some high-tax states, this still impacts net spending and can be the difference between a purchase being an asset, or a liability.
Virginia’s relatively moderate consumption tax regime is less aggressive than some states but still meaningful when planning lifestyle expenses.
Jock Tax
Virginia jock tax taxes income earned from work performed in the Commonwealth, even if the athlete maintains domicile elsewhere.
- Athletes earning game or performance income in locations like Richmond, Norfolk, or Washington-area venues within Virginia tax boundaries will owe a pro-rata multi-state income tax.
- Domicile in Virginia triggers state tax on worldwide earned income, so residency and apportionment planning are critical.
Example
An NBA player based outside Virginia will owe Virginia tax on income apportioned to games played against teams in Virginia-taxed venues, even if primary residence is in a different state.
Understanding Virginia’s jock tax application is essential for athletes who participate in multi-state competitive schedules.
Cost of Living and Housing
Cost of living in Virginia ranges widely depending on metro area:
- Northern Virginia / Washington-area suburbs: High housing and living costs, often exceeding $140k–$170k annually for a professional athlete standard of living.
- Richmond / Norfolk / Virginia Beach: More moderate living costs, with annual budgets around $80k–$130k for housing, transport, and services.
Housing
- Average 3-bed/2-bath homes in Richmond or the surrounding suburban markets average around $450,000.
- In Northern Virginia (Arlington, Alexandria, Fairfax), prices can often exceed $700,000–$900,000 for similar sized homes, reflecting proximity to high-income markets and federal hubs.
Housing costs in Virginia are correlated with metro economic variation; athletes should consider both tax and cost-of-living tradeoffs when selecting domicile or investment property.
Property Tax
Virginia has an effective property tax rate of ~0.71% which is among one of the lowest in the coastal region of the U.S.
Athletes can take advantage of this when purchasing real estate in the commonwealth, as the “DMV” can be accessed from pretty much anywhere in the state.
This means you can buy a home and establish residency in Virginia, but play in D.C, Massachusetts, or even the Midwest without having to live too far away from the team an athlete plays for if in that region.
Residency Rules
Athletes establishing residency in Virginia are subject to:
- Full application of Virginia income tax on earned income.
- Local tax compliance for services and purchases.
- Requirement to file state returns if domicile or earning thresholds are met.
Typical residency documentation includes:
- Virginia driver’s license or ID
- Voter registration
- Primary residence proof
- Evidence of physical presence
Example
A college athlete turning pro with a temporary DC contract but domicile in Virginia may find themselves subject to Virginia tax on all income earned during residency, underscoring the importance of domicile selection relative to tax planning.
Why Virginia Matters for Athletes
- Progressive state income tax (up to 5.75%) is a net income drag
- Sales tax is moderate but impacts consumption
- Jock tax applies when playing in Virginia venues
- Cost of living varies widely by metro area
- Strategic residency and planning can mitigate net tax burden
For athletes whose careers involve significant time in the Mid-Atlantic region, understanding Virginia’s tax structure is essential to optimizing net income and residency decisions.
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Next Athlete State Tax Reads
- West Virginia State Athlete Taxes
- Washington D.C. (U.S. Capital) Athlete Taxes
- Vermont State Athlete Taxes
- Maryland State Athlete Taxes
- New Hampshire State Athlete Taxes
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Credits
Sources: Virginia Department of Taxation, State & Local Tax Rates 2025, Zillow / Redfin Housing Data, APSM Proprietary Analysis
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional advice.
Apostle Sports Media 