Virginia taxes nonresident travel nurses on taxable wages earned within the commonwealth using graduated tax brackets that peak at 5.75 percent on taxable income over $17,000. Travel nurses accepting contracts in Richmond, Norfolk, Charlottesville, or Northern Virginia must file Form 763 when their Virginia gross income exceeds state thresholds.
The commonwealth maintains distinct rules for nonresidents and part-year residents. Knowing how Virginia defines residency helps you avoid erroneous tax assessments.
Virginia nonresident tax calculation and Form 763
Nonresident nurses file Virginia Form 763 to report income earned from Virginia healthcare facilities. Virginia computes your tax by determining what your tax liability would be on your entire federal adjusted gross income, and then allocates it according to your Virginia percentage.
Virginia taxable wages include hourly base pay, overtime, shift differentials, and taxable bonuses. Non-taxable lodging and meal per diems paid according to federal accountable plan rules do not factor into Virginia taxable income.
You can review your contract pay breakdown and estimate your Virginia state tax withholding using our Contract Analyzer.
Border state nurses may benefit from reciprocity agreements. Virginia maintains reciprocal tax agreements with Maryland, Washington D.C., West Virginia, and Kentucky. If you commute daily from your permanent home in Maryland or Washington D.C. to work shifts in a Virginia hospital, you may be exempt from Virginia withholding by submitting Form VA-4 to your employer.
Actual residency vs domicile in Virginia
Virginia tax law distinguishes between domiciliary residents and actual residents. A domiciliary resident is someone whose permanent legal home is in Virginia. An actual resident is someone who maintains a place of abode in Virginia for more than 183 days during the tax year.
If a travel nurse takes consecutive contracts in Virginia that keep them living in the commonwealth for more than 183 days, Virginia may classify them as an actual resident for tax purposes. This classification exposes all worldwide income earned during that period to Virginia taxation.
To protect your nonresident standing, maintain detailed travel records and verify guidelines on the Virginia Department of Taxation website.
Substantiating your duplicate housing expenses
Virginia assignments require proof of duplicate housing expenses to support non-taxable stipends. Keep signed lease agreements, utility statements, and cancelled checks for both your permanent tax home and your temporary lodging in Virginia.
If you are unsure whether your primary residence qualifies as a legitimate tax home under federal rules, take our Tax Home Quiz to evaluate your documentation before your contract begins.
Frequently asked questions
What is the filing threshold for a Virginia nonresident tax return?
Nonresidents must file Virginia Form 763 if their Virginia gross income exceeds state minimum filing thresholds, which start as low as $11,950 for single filers. A single 13-week travel contract typically exceeds this amount.
How does reciprocity work for travel nurses commuting to Virginia?
Virginia has tax reciprocity agreements with Maryland, Washington D.C., West Virginia, and Kentucky. If you commute daily from a permanent residence in one of these jurisdictions, your wages are taxable only by your home state upon filing Form VA-4.
When does an extended assignment trigger Virginia actual residency?
Virginia law classifies anyone who maintains an abode in the state and spends more than 183 days present as an actual resident. Actual residents must report worldwide income to Virginia, making assignment length tracking essential.