According to the Tax Foundation in its 2025 State Tax Competitiveness Index, Virginia ranked 28th out of 50 in state tax competitiveness. The Index has been significantly updated, with a new methodology to account for recent changes in tax policies, such as the federal Tax Cuts and Jobs Act, the Wayfair decision, and shifts due to the global pandemic. The updated version includes over 150 variables and offers more detailed, accessible data. States now have individualized summaries, and users can compare state tax policies interactively. Rankings have shifted due to both the changes in state tax codes and the revised methodology. The publication is intended to help policymakers navigate state tax policy and identify areas for reform, with a focus on five factors: individual income taxes, corporate taxes, sales taxes, property/wealth taxes, and unemployment insurance taxes.
For the full study and rankings:
https://taxfoundation.org/research/all/state/2025-state-tax-competitiveness-index/