What Is the Inheritance Tax in Virginia?

Virginia currently does not levy an inheritance tax. An inheritance or estate tax is a tax levied on the assets of an individual at the time of his death, with a higher tax rate typically charged on larger estates.

House Bill 5018

The Virginia inheritance tax was abolished with the passage of House Bill 5018. This law eliminated the inheritance tax on individuals who died beginning on July 1, 2007.

Previous Law

Individuals who died on June 30, 2007, or earlier are subject to the Virginia inheritance tax. Estates are required to file a Virginia Estate Tax return, or Form EST-80, if they are required to file a federal tax return.

Other Information

The Virginia estate tax return is due nine months from the date of death. Taxpayers may obtain an extension under certain circumstances if they are unable to make the deadline. There is no penalty for the late filing of a return, but there is a 5 percent penalty for late payment of estate taxes. Also, interest is charged for late payments at the rate of 2 percent above the rate designated by the federal government.

References

• Virginia: Virginia Department Of Taxation