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Being self-employed in Virginia gives you freedom, flexibility, and control over your income. You choose your clients, set your schedule, and build something of your own. But with that freedom comes a responsibility that many freelancers and small business owners struggle with every year: taxes.
If you are self-employed, no one withholds taxes from your income. That means you must calculate, save, and pay your taxes yourself. For many people, this is where confusion, stress, and financial pressure begin.
This blog is a complete, easy-to-read guide to Virginia self-employed taxes for 2025 – 2026. Whether you are filing for the first time or want to avoid mistakes this year, this article will help you understand what you owe, when to pay, and how to manage your money during tax season.
Who Is Considered Self-Employed in Virginia?
You are considered self-employed in Virginia if you earn income independently and do not receive a regular paycheck with taxes withheld. This includes a wide range of professionals such as freelancers, consultants, gig workers, sole proprietors, independent contractors, and single-member LLC owners.
If you received a 1099-NEC, earned money through online platforms, or run your own service-based or product-based business, you fall under the self-employed category. Even part-time self-employed income counts.
If your net earnings reach $400 or more, you are required to file self-employment taxes at the federal level. Virginia also requires you to report this income on your state return.
Why Self-Employed Taxes Feel So Overwhelming
Many self-employed individuals feel that taxes are harder because they actually are. When you work a traditional job, your employer handles most of the work behind the scenes. Taxes are deducted automatically, and you usually receive a refund or owe a small balance.
When you are self-employed, everything is your responsibility. You must track income, record expenses, calculate taxes, make quarterly payments, and file multiple forms. On top of that, income can be inconsistent, which makes planning difficult.
The good news is that once you understand the basics, the process becomes much more manageable.
Understanding Federal Self-Employment Tax
One of the biggest differences between employees and self-employed individuals is the self-employment tax.
Self-employment tax covers Social Security and Medicare. Employees split this cost with their employers. Self-employed individuals pay both portions themselves.
For 2025 – 2026, the self-employment tax rate remains 15.3 percent. This breaks down into 12.4 percent for Social Security and 2.9 percent for Medicare. If your income exceeds certain thresholds, an additional Medicare surtax may apply.
Although this tax feels heavy, there is some relief. You are allowed to deduct half of your self-employment tax when calculating your adjusted gross income. This helps reduce your overall tax burden.
Federal Income Tax Still Applies
In addition to self-employment tax, you also owe federal income tax. Your income tax rate depends on your total taxable income and filing status.
Self-employed income is reported on Schedule C, where you list your business income and deduct eligible expenses. The resulting net profit is then taxed.
Many self-employed individuals forget to plan for both self-employment tax and income tax, which can result in a large bill at tax time.
Virginia State Income Tax for Self-Employed Individuals
Virginia does not have a separate self-employment tax. Instead, self-employed individuals pay Virginia state income tax on their net earnings.
Virginia uses a progressive tax system with rates that increase as income rises. The maximum state income tax rate is 5.75 percent.
You must file Form 760, the Virginia individual income tax return, and report your self-employment income along with any other earnings.
If you expect to owe state tax, you may also need to make estimated payments to Virginia throughout the year.
Do Self-Employed People in Virginia Need to Pay Quarterly Taxes?
Yes. Most self-employed individuals are required to make quarterly estimated tax payments to both the IRS and the state of Virginia.
Estimated taxes are required if you expect to owe $1,000 or more in federal tax after credits and withholding.
Instead of paying one large bill in April, you make four smaller payments throughout the year. These payments cover federal income tax, self-employment tax, and state income tax.
Failing to make estimated payments can result in penalties, even if you pay the full amount later.
Virginia Quarterly Tax Payment Deadlines
Self-employed individuals in Virginia typically follow this schedule:
- April 15 for the first quarter
- June 15 for the second quarter
- September 15 for the third quarter
- January 15 of the following year for the fourth quarter
Virginia uses Form 760ES for estimated state payments.
Setting reminders or using tax software can help ensure you never miss a deadline.
Common Deductions for Virginia Self-Employed Taxpayers
One of the biggest advantages of being self-employed is the ability to deduct legitimate business expenses. These deductions reduce your taxable income and lower your tax bill.
Common deductions include office supplies, software subscriptions, advertising costs, website expenses, professional services, education, and business insurance.
If an expense is ordinary and necessary for your business, it is likely deductible. Keeping clear records is essential.
Read: How to Claim Tax Deduction for Remote Work Expenses in 2026: Eligibility and Filing Steps
Home Office Deduction Explained Simply
If you work from home, you may qualify for the home office deduction. The space must be used regularly and exclusively for business purposes.
You can choose between the simplified method or the actual expense method. The simplified method allows a flat rate based on square footage, while the actual method allows you to deduct a portion of rent, utilities, insurance, and maintenance.
Virginia follows federal rules for home office deductions.
Vehicle and Mileage Deductions
If you use your car for business, you may deduct vehicle expenses. You can choose between the standard mileage rate or actual vehicle expenses.
Business-related driving such as client meetings, deliveries, and job sites is deductible. Personal commuting is not.
Keeping a mileage log is important in case of an audit.
Health Insurance and Retirement Deductions
Self-employed individuals can deduct health insurance premiums if they are not eligible for employer-sponsored coverage. This includes medical, dental, and vision insurance.
You can also reduce your taxes by contributing to retirement accounts such as a SEP IRA or Solo 401(k). These contributions lower your taxable income and help you save for the future.
Sales Tax Responsibilities in Virginia
If your business sells taxable goods or services in Virginia, you are required to collect and remit Virginia sales tax.
This involves registering with the Virginia Department of Taxation, charging the correct tax rate, and filing sales tax returns regularly.
Sales tax is not your income. It belongs to the state, so proper handling is crucial.
Filing Self-Employed Taxes in Virginia
At the federal level, self-employed individuals file:
- Form 1040
- Schedule C
- Schedule SE
For Virginia, you typically file:
- Form 760
- Form 760ES if making estimated payments
Many people use tax software, while others prefer working with a tax professional, especially if their income or deductions are complex.
What Happens If You File Late or Do Not Pay?
Filing late or failing to pay taxes can result in penalties and interest from both the IRS and the state of Virginia.
Even if you cannot pay your full tax bill, it is important to file on time. Filing late usually results in higher penalties than paying late.
Cash flow problems are common for self-employed individuals, especially during tax season.
Managing Cash Flow During Tax Season
One of the biggest challenges self-employed individuals face is having enough cash available when taxes are due. Clients may pay late, income may fluctuate, or unexpected expenses may arise.
This is where short-term financial support can make a difference.
How Beem Everdraft™ Can Help When Money Is Tight
When tax deadlines are approaching and funds are limited, Beem Everdraft™ for Instant Cash Advance up to $1000 can help bridge the gap.
Beem Everdraft™ provides quick access to cash that can be used to cover tax payments, filing fees, or other urgent expenses related to tax season.
Instead of missing deadlines or facing penalties, self-employed individuals can use this option to stay compliant and manage cash flow more confidently.
You can learn more and check eligibility here: https://trybeem.com/get-instant-cash-advance
Common Tax Mistakes Self-Employed Virginians Make
Many tax problems are avoidable. Common mistakes include not paying estimated taxes, mixing personal and business expenses, missing deductions, and waiting until the last minute to file.
Another major mistake is ignoring state or local tax requirements, especially business licenses and sales tax obligations.
Simple Tips to Stay Tax-Ready All Year
Keeping your taxes under control does not have to be stressful. Tracking income and expenses monthly, setting aside money for taxes, and making quarterly payments can make a huge difference.
Using accounting software and consulting a tax professional can also help you avoid costly errors.
Final Thoughts
Self-employed taxes in Virginia may seem complicated at first, but with the right understanding and preparation, they become much easier to manage.
Knowing what taxes apply to you, taking advantage of deductions, and planning for quarterly payments can save you money and reduce stress. And when cash flow becomes a challenge during tax season, tools like Beem Everdraft™ can provide timely financial support so you can file on time and avoid penalties.
Staying informed and proactive is the key to success as a self-employed professional in Virginia.
heck out Beem for on-point financial insights and recommendations to spend, save, plan and protect your money like an expert. Download the Beem app today!
Frequently Asked Questions About Virginia Self-Employed Taxes
Do self-employed people in Virginia have to pay taxes if they make very little money?
Yes. If your net self-employment income is $400 or more, you are required to pay federal self-employment tax. Even if your income is below that amount, you may still need to file a Virginia state tax return depending on your total income and filing status.
What taxes do self-employed individuals pay in Virginia?
Self-employed individuals in Virginia typically pay federal income tax, federal self-employment tax, and Virginia state income tax. Some may also owe local business taxes or sales tax depending on the nature and location of their business.
Does Virginia have a separate self-employment tax?
No. Virginia does not charge a separate self-employment tax. Self-employed individuals pay Virginia state income tax on their net business income, along with federal self-employment tax.
When are quarterly estimated taxes due for self-employed people in Virginia?
Quarterly estimated tax payments are generally due on April 15, June 15, September 15, and January 15 of the following year. Missing these payments may result in penalties even if you pay the full tax later.
How do I calculate estimated quarterly taxes?
You estimate your annual income, subtract eligible deductions, and calculate both income tax and self-employment tax. That total is divided into four payments. Many self-employed individuals use tax software or work with a tax professional to ensure accuracy.
What happens if I do not pay quarterly taxes?
If you do not make required estimated payments, the IRS and Virginia may charge underpayment penalties and interest. Even if you pay your taxes in full by the filing deadline, penalties can still apply for missing quarterly payments.
Can I deduct business expenses on my Virginia tax return?
Yes. Ordinary and necessary business expenses can be deducted. Common deductions include office supplies, internet and phone costs, software, advertising, professional services, education, and business insurance.
Can I claim the home office deduction in Virginia?
Yes, if you use a specific area of your home regularly and exclusively for business. Virginia follows federal guidelines for the home office deduction, and you can choose either the simplified or actual expense method.
Is health insurance deductible for self-employed individuals in Virginia?
Yes. If you are self-employed and not eligible for employer-sponsored health coverage, you can deduct health insurance premiums for yourself and your family, including medical, dental, and vision insurance.
Do I need a business license to be self-employed in Virginia?
Many Virginia cities and counties require a local business license or Business Professional and Occupational License. Requirements vary by location, so you should check with your local Commissioner of the Revenue.
Do freelancers in Virginia need to collect sales tax?
Freelancers who sell taxable goods or services may be required to collect and remit Virginia sales tax. Not all services are taxable, so it is important to verify whether your specific business activities are subject to sales tax.
What if I cannot afford to pay my self-employed taxes on time?
You should still file your tax return on time to avoid late filing penalties. If cash flow is an issue, short-term solutions like Beem Everdraft™ for Instant Cash Advance up to $1000 can help cover tax payments and prevent penalties while you manage your finances.
Can Beem Everdraft™ be used to pay taxes?
Yes. Beem Everdraft™ provides instant cash access that can be used for tax-related expenses such as estimated payments, filing fees, or avoiding late payment penalties when funds are temporarily unavailable. You can learn more here: https://trybeem.com/get-instant-cash-advance
Is it better to hire a tax professional if I am self-employed in Virginia?
Many self-employed individuals benefit from working with a tax professional, especially if they have multiple income streams, large deductions, or sales tax responsibilities. A professional can help reduce errors and ensure compliance.
What records should self-employed people keep for taxes?
You should keep income records, expense receipts, mileage logs, bank statements, invoices, and tax forms. Good record keeping makes filing easier and protects you in case of an audit.
How can I reduce my self-employed tax burden legally?
You can reduce your tax burden by tracking expenses carefully, making quarterly payments, contributing to retirement accounts, deducting health insurance, and planning ahead throughout the year instead of waiting until tax season.
