The Democratic proposals from both the state Senate and House of Delegates claim to provide $977.8 million in rebates to taxpayers, with a $200 rebate for single filers and a $400 rebate for joint filers. They also increase the standard deduction for tax filers in the Old Dominion.

The proposals from both chambers do not include Youngkin’s plans to phase out the car tax through rebates or to eliminate taxes on tips. Virginia Democrats opted instead to offer sweeping rebates for all taxpayers.

“The Senate Budget is a testament to Senate Democrats’ steadfast commitment to serving all Virginians – not just a privileged few,” Virginia Senate Democrats said in a statement. “While the governor’s proposal created winners and losers, our Senate budget delivers targeted relief and strategic investments that uplift every working family across the Commonwealth. From responsible tax reductions to robust education funding, from expanding healthcare access to strengthening community protections, we are building a more resilient, equitable, and prosperous Virginia for all.”

Youngkin was optimistic about getting tax cuts despite the differences between his and the Democrats’ proposals.

“While there are areas where we agree and others where we may disagree, we will go to work to deliver for Virginians, as we have done the past three years,” Youngkin said in a statement.

Youngkin has unsuccessfully pushed for the elimination of the car tax during his time as governor, facing Democratic pushback each time he has proposed it. Democrats have narrow majorities in both chambers for the remaining 11 months of Youngkin’s term.

During Youngkin’s time as governor, he has been able to get one-time tax rebates passed with Democratic support in 2022 and 2023.