Virginia brokerage account growth calculator

What a taxable index-fund account is actually worth after expense-ratio drag and after Virginia takes its share of the gain — which, in most states, is not at the federal preferential rate.

Virginia taxes your gains as ordinary income

There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Virginia's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. Long-term capital gains are taxed as ordinary income, which in practice means 5.75% for almost everyone, since Virginia's top bracket starts at $17,000 of taxable income. Form 760 begins from federal adjusted gross income, which already includes net capital gain, and Va. Code 58.1-322.02 contains no general capital gains exclusion, no holding-period discount, and no alternative rate. The federal preferential long-term rate does not carry over. The only gain-related subtractions are narrow economic-development provisions -- long-term capital gain from investment in a qualified business, subject to conditions on business type, location, and investment timing -- and they are not a general capital gains break.