
by David Saunders
Welcome to 2026!
Youโll be getting a W-2 from your employer soon in the mail. Itโs an annual reminder of what you made and what the government took in taxes. You might owe the IRS (like me) or you might get a refund (like many), but either way itโs still sobering to think how much we have to fork over for the privilege of being a citizen.
The biggest line item is federal income tax. Youโll also see deductions for payroll taxes for like Social Security and Medicare, quietly withheld every pay period. It is mysteriously labeled FICA (Federal Insurance Contributions Act) and trust me itโs not a contributionโฆ itโs a tax.
Then thereโs state income tax, where the Commonwealthโs top rate of 5.75% isnโt especially low or high, but itโs another layer on the stack. (Expect this to go up in the next 4 years)
Next comes sales tax. Every little thing you buy, every Amazon order, every trip to the store, is subject to sales tax. Virginiaโs combined state and local rate averages just under six percent, but some localities add much, much more like Richmondโs hot meals tax โ where you pay 13.8% to eat out. In some areas you pay higher rates for transportation, hotel stays, admissions to events, or extra tax if you own a business. BPOL Tax (Business Professional & Licensing Tax) was adopted after 1812 to pay for the war of 1812 โ and it never went away.
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