Taxation & revenues; extends sunsets for standard deduction and refundable earned income tax.

Taxation and revenues of the Commonwealth. Extends the sunset from January 1, 2027, to January 1, 2029, for the standard deduction amounts of $8,750 for single individuals and $17,500 for married individuals filing jointly. Under current law, the standard deduction is scheduled to revert to $3,000 for single individuals and $6,000 for married individuals filing jointly after taxable year 2026. The bill also extends the sunset from January 1, 2027, to January 1, 2029, for the increase in Virginia…

Source: OpenStates · fetched February 17, 2026

• Low-income / working-classindirectModerate impactHigh certainty

  The bill extends the sunset for current standard deduction amounts, which will result in lower tax liability for individuals who itemize deductions or take the standard deduction. This indirectly benefits low-income individuals by increasing their disposable income.

  “Extends the sunset from January 1, 2027, to January 1, 2029, for the standard deduction amounts of $8,750 for single individuals and $17,500 for married individuals filing jointly.”· Taxation and revenues of the Commonwealth.

  “Under current law, the standard deduction is scheduled to revert to $3,000 for single individuals and $6,000 for married individuals filing jointly after taxable year 2026.”· Taxation and revenues of the Commonwealth.

Fiscal impact: Moderate (Extending the standard deduction amounts will reduce state tax revenues. The exact magnitude is not specified but is likely moderate given the impact on a broad base of taxpayers.)