VA HB188

Creates a new 10% income tax bracket for Virginia taxable income exceeding $1 million, effective January 1, 2026, in addition to the existing brackets (2% up to $3,000; 3% from $3,000-$5,000; 5% from $5,000-$17,000; 5.75% from $17,000-$1 million)

Allocates 4.25% of the revenue collected from the new 10% bracket to three designated programs

Directs 50% of the allocated revenue to additional basic aid funding for public schools, distributed to local school boards

Dedicates 30% of the allocated revenue to the Child Care Subsidy Program administered by the Department of Social Services and overseen by the Virginia Department of Education

Dedicates 20% of the allocated revenue to the Virginia Housing Trust Fund, with the requirement that all distributed funds supplement rather than replace existing Commonwealth funding