Virginia law provides an automatic six-month filing extension for income tax returns. No application for extension is required. The extension is for filing the return, not for payment of the tax; therefore, you must pay at least 90 percent of your tax by the due date, May 3 for calendar year filers. To make a payment of tentative tax, use Form 760IP.
Extension penalty: If you file your return within six months after the due date and the amount of tax due with the return is more than 10 percent of your total tax liability, you must compute an extension penalty on the balance of tax due. The extension penalty is applied at the rate of two percent per month or part of a month, from the due date through the date your return is filed. The maximum extension penalty is 12 percent of the tax due. Note: If you do not pay the tax in full when you file your return, a late payment penalty will be assessed at the rate of 6 percent per month or part of a month from the date the return is filed through the date the tax is paid, to a maximum of 30 percent. Late payment penalty is imposed in addition to the extension penalty