Virginia's sales tax rate and what it covers

Virginia charges a sales tax of 5.3 percent on most goods and services you buy in the state. This rate is made up of two parts: a 4.3 percent state tax and a 1 percent local tax that your city or county adds on top. Some localities charge higher local rates — up to 2.5 percent in certain areas — which means your total sales tax can reach as high as 7.3 percent depending on where you shop.

The 5.3 percent applies to clothing, electronics, furniture, groceries at the register, and most other items. However, Virginia excludes certain things from sales tax entirely. Unprepared food you buy at a grocery store — like raw vegetables, meat, bread, and milk — is not taxed. Prescription medications are also tax-free. If you buy a used car from a private seller, you pay sales tax based on the purchase price, but the rate is the same 5.3 percent as anything else.

Services are taxed differently than goods. A haircut, car repair, or plumbing work is generally not subject to sales tax in Virginia. However, some services tied to tangible products — like installation or delivery — may be taxed depending on how the business reports it.

Key Takeaways

  • Virginia's base sales tax is 5.3 percent statewide, but your actual rate depends on your city or county's local addition, which can push the total as high as 7.3 percent.
  • Unprepared food from grocery stores and prescription medications are not taxed, but prepared food and over-the-counter drugs are.
  • Used cars purchased from private sellers are taxed at the same 5.3 percent rate as new vehicles, and you pay tax on the sale price.
  • Most services like haircuts and repairs are not taxed, though installation or delivery fees tied to a product purchase may be.
  • You do not pay sales tax on items shipped to you from out of state unless the seller has a physical location in Virginia.

Local tax rates vary by city and county

The 1 percent local portion of Virginia's sales tax is not the same everywhere. Your city or county can set its own local rate, and many do. Most localities use 1 percent, but some charge 1.5 percent or 2 percent. A few areas in Northern Virginia and around the state have pushed their local rate to 2.5 percent.

To find your exact rate, look at your receipt from any purchase — the sales tax shown there reflects your locality's total. You can also contact your city or county tax assessor's office, or search the Virginia Department of Taxation website, which lists rates by locality. The difference matters most on large purchases like appliances or furniture, where an extra 1 percent can add up quickly.

What is and is not taxed in Virginia

Understanding what Virginia taxes helps you predict what you will pay at checkout. Clothing and shoes are taxed at the full rate. Groceries are taxed only if they are prepared — a rotisserie chicken from the deli counter is taxed, but a raw chicken from the meat case is not. Similarly, a sandwich from a deli is taxed, but a loaf of bread is not.

Prescription medications filled by a pharmacist are exempt from sales tax. Over-the-counter medicines like cold medicine or pain relievers are taxed. Vitamins and supplements are also taxed. Diapers and feminine hygiene products are not taxed in Virginia.

Digital products and subscriptions — like e-books, streaming services, or software downloads — are taxed in Virginia. Newspapers and magazines in print form are not taxed, but digital subscriptions to news sites are. This distinction can be confusing, so if you are unsure whether a digital purchase is taxed, ask the seller before you buy.

How sales tax applies to vehicles

When you buy a used car from a private seller in Virginia, you owe sales tax on the purchase price. You pay this tax when you register the vehicle with the Department of Motor Vehicles, not at the time of sale. The tax is calculated at your locality's rate — the same 5.3 percent base plus your local addition.

If you buy from a dealer, the dealer collects the sales tax at the point of sale and sends it to the state. The amount is the same either way — it is based on what you paid for the vehicle. Trade-ins do not reduce the taxable amount; Virginia taxes the full sale price, not the difference between the new price and your trade-in value.

If you move to Virginia and bring a vehicle you already own, you do not owe sales tax on it. You only pay tax when you buy a vehicle in Virginia or bring one into the state to sell it.

Sales tax on online and out-of-state purchases

If you order something online from a company with no physical location in Virginia, you typically do not pay Virginia sales tax at checkout. However, if the seller has a warehouse, store, or office in Virginia, they must collect sales tax on your order even if you live out of state.

Large online retailers like Amazon collect sales tax on orders shipped to Virginia addresses because they have fulfillment centers in the state. Smaller sellers without a Virginia presence do not collect Virginia tax. In those cases, Virginia law says you owe "use tax" — which is the same rate as sales tax — but most individuals do not report or pay it. The tax is meant to level the playing field between local stores and out-of-state sellers.

If you buy something in another state and bring it into Virginia, you do not owe Virginia sales tax on it. Sales tax is paid where the purchase happens, not where you take the item afterward.

Resale certificates and business purchases

If you own a business and buy items to resell, you can use a resale certificate to avoid paying sales tax at the time of purchase. You pay tax only when your customer buys the final product. To get a resale certificate, you register with the Virginia Department of Taxation and provide your business license number.

Resale certificates work only for items you intend to resell. If you buy office supplies for your own business use, you still pay sales tax. The certificate is not a blanket exemption — it applies only to inventory you plan to sell to customers.

If you are a nonprofit organization, you may be able to get a sales tax exemption. You must register with the Virginia Department of Taxation and provide proof of your nonprofit status. Not all nonprofits may have access to, so check with the department about your specific situation.

How to read a Virginia sales tax receipt

Your receipt shows the subtotal, the sales tax amount, and the total. The sales tax line tells you the rate that was applied. If you bought something that should not have been taxed — like a prescription medication — and you were charged tax, you can ask the store for a refund. Keep your receipt as proof of the purchase.

If you notice the tax rate on your receipt is higher or lower than you expected, it may be because you moved to a new locality or the store is in a different area than where you live. The tax rate is based on where the sale happens, not where you live. If you buy something in a store in one county and you live in another, the store's local rate applies.

Frequently Asked Questions

Is clothing taxed in Virginia?

Yes, clothing and shoes are subject to Virginia's full sales tax rate of 5.3 percent plus your local tax. There is no clothing exemption in Virginia, unlike some other states.

Do I pay sales tax on groceries?

Unprepared food from a grocery store — raw meat, vegetables, bread, milk, eggs — is not taxed. Prepared food like rotisserie chicken, deli sandwiches, or hot pizza is taxed. The distinction is whether the food is ready to eat when you buy it.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller when you buy something. Use tax is a tax you owe on items you buy out of state and bring into Virginia, at the same rate as sales tax. Most individuals do not report use tax, but it is technically owed.

Do I pay sales tax on a used car from a private seller?

Yes, you pay sales tax on the purchase price when you register the vehicle with the Department of Motor Vehicles. The tax is your locality's rate — 5.3 percent plus any local addition.

Why was I charged sales tax on an online order?

The seller collects Virginia sales tax if they have a physical presence in the state, such as a warehouse or office. Large retailers like Amazon do this because they have fulfillment centers in Virginia.