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HB 378

Net investment income tax; imposes a tax on individuals, trusts, and estates.

2026 Regular Session Introduced by Elizabeth Bennett-Parker

Virginia HB 378 proposes a net investment income tax on individuals, trusts, and estates but was recommended for tabling by House subcommittee in February 2026.

Subcommittee recommends laying on the table (10-Y 0-N)
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Bill Summary · HB 378

Legislative bill overview

HB 378 would impose a net investment income tax on Virginia individuals, trusts, and estates. The bill was prefiled in January 2026, referred to the Finance Committee, and subsequently recommended for tabling by a House subcommittee in early February 2026.

Why is this important

Net investment income taxes directly affect how capital gains, dividends, interest, and rental income are taxed, potentially increasing state revenue while influencing investment behavior and wealth accumulation. This type of tax has significant implications for retirees, investors, and business owners in Virginia, as well as the state's competitive position relative to neighboring states with different tax structures.

Potential points of contention

  • Revenue versus economic competitiveness: Whether increased tax revenue justifies potential impacts on business investment, relocation of high-net-worth individuals, and Virginia's tax competitiveness compared to states without similar taxes
  • Definition and scope: How "net investment income" is defined and what specific income types are included, affecting whom the tax ultimately burdens
  • Implementation burden: Administrative complexity and compliance costs for individuals, trusts, estates, and the state tax agency in calculating, reporting, and enforcing the tax

Compiled from official sources — confirm details with the bill’s official record.

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