Virginia's effective minimum rate is 5.3% (4.3% state + mandatory 1% local in all jurisdictions). The Northern Virginia and Hampton Roads regions add an extra 0.7% regional transportation tax, making their combined rate 6%. Virginia dramatically reduced its grocery tax in 2023 — local taxes no longer apply to groceries, and the state rate dropped to 1%.
Virginia sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 4.30% |
| Avg local add-on | 1.45% |
| Avg combined | 5.75% |
| Maximum combined | 7.00% |
Note: Virginia state rate is 4.3%, plus mandatory 1% local. Groceries taxed at reduced 1% state rate (no local in 2023+).
Virginia sales tax by city
Combined state + local sales tax rates for major cities in Virginia:
| City | Combined Rate |
|---|---|
| Virginia Beach | 6.00% |
| Norfolk | 6.00% |
| Richmond | 6.00% |
| Arlington | 6.00% |
What's exempt in Virginia
Groceries
Reduced state rate: 1.00% (vs. 4.30% general). Local rates may still apply.
Clothing & footwear
Taxed at standard rate.
Prescription drugs
Exempt from sales tax (typical across most states).
Virginia sales tax holidays
During a sales tax holiday, qualifying items are exempt from Virginia sales tax. Some local jurisdictions may opt out — check with retailers near you.
Combined (3-in-1) Holiday
1st Friday-Sunday of August
School supplies ≤$20, clothing ≤$100, energy star ≤$2500, hurricane prep ≤$60
How Virginia sales tax is calculated
Sales tax in Virginia is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 5.75% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (4.30%) plus any local city or county add-ons. Virginia allows local jurisdictions to add their own taxes, so the rate varies by location.
Quick calculation examples at average rate 5.75%:
$100 item
$5.75 tax
$105.75 total
$250 item
$14.38 tax
$264.38 total
$500 item
$28.75 tax
$528.75 total
$1,000 item
$57.50 tax
$1057.50 total
Additional tax-free items in Virginia
Beyond the standard exemptions, Virginia also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Virginia Department of Revenue for complete rules.
Virginia sales tax in context: rates, history, and neighbors
Virginia's tax structure is unique: 4.3% state sales tax PLUS a mandatory 1% local tax that applies statewide (no jurisdiction can opt out). Combined minimum is 5.3% everywhere. Northern Virginia (Arlington, Fairfax, Loudoun, Prince William) and Hampton Roads (Norfolk, Virginia Beach, Chesapeake) regions add 0.7% for regional transportation = 6%. Some additional local taxes push some VA jurisdictions to 7%. VA dramatically reduced grocery taxes effective January 2023 — state grocery rate dropped to 1%, and local jurisdictions can no longer add local tax to groceries (a major consumer protection). VA's combined groceries tax is now just 1% statewide. Compared to neighbors: North Carolina (~6.99% combined), Tennessee (~9.55%), Kentucky (6%), West Virginia (~6.58%), Maryland (6%), DC (6%) — VA's combined sits in the lower middle of regional rates.
Online shopping & Virginia sales tax
Virginia requires economic nexus — remote sellers with $100,000+ or 200+ Virginia transactions must collect Virginia sales tax. Virginia is a member of the Streamlined Sales Tax (SST) Agreement. Virginia also taxes most digital goods including streaming services and digital downloads at the applicable combined rate.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Virginia sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Virginia state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Virginia sales tax on common purchases?
Using Virginia's average combined rate of 5.75%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | $3.68 | $153.68 |
| Clothing / shoes | $120 | $6.90 | $126.90 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $57.44 | $1056.44 |
| Laptop / tablet | $1,299 | $74.69 | $1373.69 |
| New car ($35,000) | $35,000 | $2012.50 | $37012.50 |
| Home appliance | $1,500 | $86.25 | $1586.25 |
| Restaurant meal | $60 | $3.45 | $63.45 |
Based on Virginia's average combined rate of 5.75%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Virginia: business guide
If you sell goods or taxable services to Virginia customers, here's what you need to know:
- Registration: Register for a Virginia sales tax permit/license through the Virginia Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Virginia annual sales or 200+ transactions, you must collect Virginia sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). You must collect both state (4.30%) and applicable local rates.
- Destination vs origin sourcing: Virginia uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Virginia sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Virginia Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Virginia sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Virginia resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Virginia is not currently a member of the Streamlined Sales Tax (SST) Agreement — check Virginia Department of Revenue for filing specifics.
Virginia-specific business compliance details
Virginia businesses register with the VA Department of Taxation at tax.virginia.gov for a Sales Tax Certificate of Registration. Filing frequency: monthly for $1,200+/year tax, quarterly for $300-$1,200, annually for under $300. Out-of-state sellers with $100,000+ in VA sales (or 200+ transactions) must collect VA tax (economic nexus, since July 2019). VA is a Streamlined Sales Tax (SST) Agreement member. Marketplace facilitators collect VA tax. VA uses destination-based sourcing. The mandatory 1% local + variable additional local taxes require POS configuration by jurisdiction. The 1% grocery rate (since 2023) is a special POS configuration challenge. Penalties: 6% per month (capped at 30%) plus interest. VA's annual combined tax holiday creates predictable August compliance complexity.
Virginia sales tax frequently asked questions
How much is sales tax on groceries in Virginia after 2023?
Starting January 2023, Virginia dramatically reduced grocery taxes: the state rate dropped to 1%, and local jurisdictions are prohibited from adding their own tax to groceries. This means grocery purchases anywhere in Virginia now face just 1% total tax — down from 2.5%–3.5% previously. On $200/week in groceries, Virginia families save approximately $300/year compared to the old system. Prepared foods (restaurants) still face the full combined rate.
What is Virginia's combined sales tax rate and how does the mandatory local work?
Virginia is unique in having a mandatory 1% local tax that applies statewide — even in jurisdictions that didn't specifically enact their own tax. The minimum combined rate is 5.3% everywhere (4.3% state + 1% mandatory local). Northern Virginia and Hampton Roads add an additional 0.7% regional transportation tax, making their combined rate 6%. Some localities add further taxes beyond these minimums.
What is Virginia's combined back-to-school and energy holiday?
Virginia's annual combined tax holiday (first Friday through Sunday of August) covers three categories simultaneously: School supplies under $20/item (no limit on quantity); Clothing and footwear under $100/item; and Energy Star appliances under $2,500. Virginia's combined holiday is one of the broadest — covering school supplies, clothing, AND appliances in one event. Hurricane preparedness items (under $60) are also covered during this same weekend.