VA HB1074

Introduces a new top income tax bracket of 7.75% on income exceeding $1,000,000 for taxable years beginning January 1, 2027, while maintaining the existing 5.75% rate for income between $17,000 and $1,000,000.

Increases the standard deduction to $10,000 for single filers and $20,000 for married couples filing jointly beginning January 1, 2026.

Expands the military benefits subtraction from taxable income to $60,000 beginning January 1, 2026, with annual inflation adjustments starting in 2027.

Applies to taxable years beginning on and after January 1, 2026 and 2027 depending on the specific provision.