A bill aiming to lower state taxes on long-term capital gains from selling a primary residence has been introduced to the Virginia State Senate by State Sen. Jeremy S. McPike, according to the Virginia State Senate.
Formally titled SB139, and introduced on Jan. 14, 2026, during the 2026 regular session, the measure is officially described as: “Income tax, state; subtraction for long-term capital gains from sale of principal residence.”
The summary below draws directly from the bill’s language and is clarified for reader understanding.
Overall, the proposal modifies Virginia’s individual income tax subtractions so that certain long-term capital gains from selling a principal home would not be counted as Virginia taxable income. For tax years beginning Jan. 1, 2025, through Dec. 31, 2029, taxpayers can subtract income reported as a long-term capital gain federally, originating from selling their main residence, which exceeds the exclusion allowed under 26 U.S.C. § 121(b). For this 5-year window, the legislation intends to offer state tax relief on home sale gains exceeding federal exclusions and still subject to state taxes.
No other sponsors joined, with Sen. Jeremy S. McPike (Democrat-29th District) the sole patron of the bill.
McPike has filed 20 additional bills so far this session.
He earned his BA from George Mason University in 1997.
Since 2016, McPike, a Democrat from the 29th District, has represented this Northern Virginia area in the State Senate, having replaced prior senator Charles Colgan.
The legislative process in Virginia starts when legislation is introduced in either the House of Delegates or the Senate. It is referred to a committee for consideration and possible amendments. If the committee approves, the measure advances to the full chamber for debate and voting. Both chambers must pass the bill before it is sent to the governor, who may sign it, veto it, or permit it to become law without a signature. Each regular session of the Virginia General Assembly begins the second Monday in January. Lawmakers introduce hundreds of bills in these sessions, but only a fraction are enacted into law.
| Patron(s) | Bill Number | Date Introduced | Short Description |
|---|---|---|---|
| Jeremy S. McPike | SB139 | 01/14/2026 | Income tax, state; subtraction for long-term capital gains from sale of principal residence. |
| Jeremy S. McPike, Barbara A. Favola, Jennifer B. Boysko, Kannan Srinivasan, Russet Perry, and Saddam Azlan Salim | SB74 | 01/14/2026 | Affordable housing; local zoning ordinance authority. |
| Jeremy S. McPike and Christie New Craig | SB122 | 01/14/2026 | School boards; student diabetes care & management in schools, division wide plan required. |
| Jeremy S. McPike and Russet Perry | SB138 | 01/14/2026 | PFAS monitoring; DEQ to require for industrial wastewater source, publicly owned treatment works. |
| Jeremy S. McPike | SB140 | 01/14/2026 | Fire Programs, Department of; development of mental health awareness training. |
| Jeremy S. McPike | SB148 | 01/14/2026 | Income tax, state; subtraction for tax, military retirement benefits, uniformed services. |
| Jeremy S. McPike | SB149 | 01/14/2026 | State-facilitated IRA savings program; various changes to the program. |
| Jeremy S. McPike and Bill DeSteph | SB164 | 01/14/2026 | Health insurance; ethics and fairness in carrier business practices, downcoded claims. |
| Jeremy S. McPike | SB165 | 01/14/2026 | Contracts; retainage bonds permitted in construction contracts, effective clause. |
| Jeremy S. McPike | SB166 | 01/14/2026 | Insurance; contingent deferred annuities, nonforfeiture benefits. |
| Jeremy S. McPike | SB170 | 01/14/2026 | Protection of employees; covenants not to compete, discharged employees. |
| Jeremy S. McPike | SB256 | 01/14/2026 | Appliance minimum energy and water conservation standards; requirement of manufacturers. |
| Jeremy S. McPike | SB321 | 01/14/2026 | Abandonment of highway; section of the secondary state highway system, local authority. |
| Jeremy S. McPike and Jennifer D. Carroll Foy | SB324 | 01/14/2026 | Virginia Public Procurement Act; additional public works contract requirements. |
| Jeremy S. McPike | SB326 | 01/14/2026 | Virginia Public Procurement Act; cooperative procurement. |
| Jeremy S. McPike and Kannan Srinivasan | SB371 | 01/14/2026 | Electric utilities; electric demand flexibility programs, high energy demand customers, report. |
| Jeremy S. McPike, Angelia Williams Graves, Jennifer D. Carroll Foy, Kannan Srinivasan, and Saddam Azlan Salim | SB388 | 01/14/2026 | Affordable housing; religious organizations and other nonprofit tax-exempt properties. |
| Jeremy S. McPike and Angelia Williams Graves | SB443 | 01/14/2026 | Siting of battery energy storage projects; commercial solar photovoltaic generation facilities. |
| Jeremy S. McPike, Adam P. Ebbin, Jennifer B. Boysko, Kannan Srinivasan, Saddam Azlan Salim, and Scott A. Surovell | SB446 | 01/14/2026 | Limited-duration licenses, driver privilege cards, and permits; validity periods for documents. |
| Jeremy S. McPike | SB487 | 01/14/2026 | Electric cooperatives; authorized to establish and implement a virtual power plant program. |
| Jeremy S. McPike | SB591 | 01/14/2026 | Income tax, state; free tax filing program for individuals |
Information in this article was obtained from the Virginia State Senate. The source data can be found here.
