HB 188, introduced by Virginia Beach Del. Kelly Convirs-Fowler, would add a 10% tax on income over $1M, directing new revenue to schools, child care and housing.
VIRGINIA, USA โ A proposal to create a new income tax bracket for Virginiaโs highest earners is moving through the General Assembly, aiming to generate new revenue for schools, child care and affordable housing.
House Bill 188, introduced by Del. Kelly Convirs-Fowler of Virginia Beachโs 96th House District, would create a new income tax bracket starting in the 2026 tax year. The proposal would impose a 10% tax on annual income exceeding $1 million.
Currently, Virginia taxes all income above $17,000 at a flat rate of 5.75%.
The bill directs how revenue generated from the higher tax rate would be allocated. 50% of the additional revenue would be dedicated to providing increased basic aid funding for public schools. 30% would go to the Child Care Subsidy Program, and 20% would be allocated to the Virginia Housing Trust Fund.
HB 188 also includes technical amendments.
The bill is currently in committee.
