Virginia Self-Employed Taxes in 2026: Rates, BPOL, and the May 1 Deadline
Virginia's income tax is not the highest in the country, but it is one of the easiest to get wrong. The state runs its own quarterly calendar, the annual return is due May 1 instead of April 15, and a local gross-receipts license tax called BPOL shows up in your mailbox once your gig income crosses a city threshold. This guide walks through the full 2026 picture for Virginia freelancers, drivers, and creators — start with your combined federal, self-employment, and state number in the [Virginia self-employed tax calculator](https://gigmytax.com/calculators/virginia-self-employed-tax).
The three layers of a Virginia 1099 tax bill
Every Virginia self-employed worker pays the same federal income tax brackets as everyone else, plus the 15.3% self-employment tax (12.4% Social Security up to the 2026 wage base, 2.9% Medicare). On top sits Virginia's graduated state income tax: 2% on the first $3,000 of taxable income, 3% to $5,000, 5% to $17,000, and 5.75% on everything above that. Because the top bracket starts so low, most full-time gig workers effectively pay a flat 5.75% on nearly all of their taxable profit.
Virginia's quarterly calendar is different
The IRS wants its first estimated payment on April 15. Virginia wants its Q1 Form 760ES payment on May 1 — two weeks later. The remaining three state installments follow the familiar federal dates of June 15, September 15, and January 15. The May 1 quirk catches new freelancers every year: they pay the IRS in April, relax, and get a Virginia underpayment notice the following spring. Put both dates on your calendar and treat them as a pair.
Do you have to pay state estimates at all?
Virginia requires 760ES payments if you expect to owe more than $150 of state income tax after credits and withholding. On 1099 income, that threshold is crossed at roughly $3,000–$4,000 of net profit — in other words, nearly everyone with steady gig work.
The safe harbor
Pay 90% of this year's Virginia tax or 100% of last year's (spread across the four installments) and no underpayment penalty applies even if the final bill is higher.
BPOL: the local tax nobody warns you about
Virginia cities cannot tax your income, but most of them tax your business revenue through the Business, Professional and Occupational License tax. Virginia Beach charges roughly $0.36 per $100 of gross receipts for professional services once you pass $25,000; Richmond, Norfolk, and Chesapeake run similar schedules, and Northern Virginia towns each set their own. BPOL is filed with the local Commissioner of the Revenue — not the state — usually renewing each March 1. It is a small percentage, but it applies to gross receipts, not profit, so high-revenue low-margin gig work feels it most.
Deductions that shrink the Virginia bill
Virginia starts from federal adjusted gross income, so every Schedule C deduction flows straight through. Mileage at $0.70 per business mile in 2026 is the big one for drivers: 12,000 business miles wipes $8,400 off both your federal and Virginia taxable income. The home office deduction, your business-use phone percentage, health insurance premiums, and SEP-IRA or Solo 401(k) contributions all reduce state tax too. One caveat: retirement contributions cut income tax, not the 15.3% SE tax.
A worked example
A Richmond Instacart shopper grosses $46,000 in 2026 with 11,000 business miles ($7,700) and $1,800 of other expenses, leaving $36,500 of net profit. Self-employment tax comes to roughly $5,157. After the standard deduction, the 50% SE-tax deduction, and mileage already netted out, federal income tax lands near $2,500 and Virginia tax near $1,600 — a combined bill of about $9,300, or roughly $2,325 per quarter. Run your own figures in the calculator above before setting your set-aside percentage.
The May 1 annual return
Virginia's Form 760 is due May 1, 2027 for the 2026 tax year — one of the latest original deadlines in the country. There is an automatic six-month extension to November 1, but as always that extends filing, not paying. If you file federal on April 15 and forget the state for two weeks, nothing bad happens; if you forget it entirely, penalties and interest start immediately after May 1.
Common Virginia mistakes
Three errors recur. First, assuming the federal April 15 date covers Virginia — it does not, Q1 is May 1. Second, ignoring BPOL until a renewal notice with penalties arrives. Third, claiming gas and repairs alongside the standard mileage rate, which double-counts vehicle costs and invites a state adjustment that mirrors any federal one.
Frequently asked questions
+What is Virginia's income tax rate for gig workers in 2026?
Graduated from 2% to 5.75%, with the 5.75% top rate applying above $17,000 of taxable income — so most full-time gig workers pay 5.75% on nearly all profit.
+When is Virginia's first quarterly estimated payment due?
May 1, 2026 — not April 15. The remaining 760ES installments follow the federal dates of June 15, September 15, and January 15, 2027.
+What is BPOL and do gig workers owe it?
BPOL is a local business license tax on gross receipts charged by most Virginia cities and counties. Once your revenue passes the local threshold (often $25,000), you register and pay a small percentage based on your business category.
+Do I need to file Virginia estimated taxes for a small side gig?
Only if you expect to owe more than $150 of Virginia tax. Below that, settle up with the annual return; above it, file Form 760ES quarterly.
+When is the Virginia state tax return due?
May 1, 2027 for tax year 2026, with an automatic six-month extension to November 1, 2027 to file (not to pay).
+Does the mileage deduction reduce Virginia tax?
Yes. Virginia starts from federal AGI, so the $0.70 per business mile 2026 rate cuts your state taxable income automatically.
About the author
Javed Niamat · Founder & Editor, GigTax
Javed Niamat founded GigTax to make self-employment tax math understandable for rideshare drivers, delivery couriers, creators and freelancers. He builds and maintains every calculator on this site and writes the guides that explain the numbers behind them.
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