Virginia taxes federal AGI less an $8,750 standard deduction and a $930 exemption per filer, at graduated rates from 2% to 5.75%. Its brackets are the same for every filing status. Neither federal deduction reduces Virginia tax, because both are taken below adjusted gross income, which is where Virginia starts.
What it means on a real paycheck
Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.
In Virginia it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.
How Virginia works out the tax
Virginia charges graduated rates from 2% up to 5.75%, across four bands, after a standard deduction of $8,750 single or $17,500 filing jointly and an exemption of $930 a person. It begins from your federal adjusted gross income and applies its own reliefs from there.