VA HB1210

Creates a new Virginia income tax subtraction for long-term capital gains from the sale of a principal residence that exceed federal exclusion limits under 26 U.S.C. § 121(b)

Applies to taxable years beginning on or after January 1, 2025, but before January 1, 2030

Federal law currently excludes up to $250,000 in capital gains for single filers and $500,000 for married couples filing jointly from the sale of a primary home; this bill would allow Virginia taxpayers to subtract gains exceeding those thresholds

Amends § 58.1-322.02 of the Code of Virginia by adding a new subdivision 32 to the list of allowable subtractions from Virginia taxable income

Introduced by Delegate Sewell and prefiled on January 14, 2026, with committee referral pending