Virginia's sales tax rate and what it covers

Virginia charges a sales tax of 5.3 percent on most retail purchases. This is the state rate alone — your actual tax depends on where you buy, because cities and counties in Virginia add their own local tax on top. Local rates range from 0.5 to 2.3 percent, so your total sales tax bill can be anywhere from 5.8 to 7.6 percent depending on your location.

The 5.3 percent state rate applies to tangible goods — things you can touch and take home. That includes clothing, electronics, furniture, groceries at the checkout, and prepared food. It also applies to certain services, like dry cleaning, car repairs, and pest control. Digital goods like e-books, downloaded music, and software downloads are taxed the same way as physical items.

Some purchases are exempt from Virginia sales tax entirely. Unprepared food you cook at home — raw meat, vegetables, bread, milk — is not taxed. Prescription medications are exempt. Medical equipment prescribed by a doctor is exempt. If you buy something for resale (you are a business), you can provide a resale certificate to avoid paying tax upfront.

Key Takeaways

  • Virginia's state sales tax is 5.3 percent, but your total rate includes local tax and ranges from 5.8 to 7.6 percent depending on your city or county.
  • Sales tax applies to clothing, electronics, prepared food, and most services, but not to unprepared groceries or prescription medications.
  • Online purchases from out-of-state sellers are subject to Virginia sales tax if the seller has a physical presence in the state or meets federal economic nexus thresholds.
  • Businesses can avoid paying sales tax on inventory by providing a resale certificate to their suppliers.
  • Some items like vehicles, fuel, and utilities are taxed under separate excise tax systems rather than the standard sales tax.

How local sales tax works in Virginia

Virginia gives cities and counties the power to set their own local sales tax rate on top of the state rate. This means two people buying the same item in different parts of Virginia will pay different amounts of tax. A shirt that costs $20 in Arlington (where local tax is 2.3 percent) will have $1.46 in total sales tax, while the same shirt in a county with 0.5 percent local tax will have $1.10 in tax.

The local rate is set by your city or county government and does not change based on what you buy — it applies to the same goods and services as the state tax. You can find your local rate by looking up your city or county on the Virginia Department of Taxation website, or by checking your receipt from a recent purchase. The tax is collected by the retailer and sent to both the state and local government.

What items are taxed and what are not

Groceries present the most common confusion. Unprepared food — meat, produce, bread, milk, eggs, canned goods — is not taxed. The moment that food is prepared for when ready consumption, tax applies. A rotisserie chicken from the grocery store deli is taxed. A sandwich from the deli counter is taxed. Cereal in a box is not. This rule applies whether you buy at a grocery store, restaurant, or gas station.

Clothing and shoes are fully taxed in Virginia with no exemptions. Children's clothing is not treated differently. Used clothing sold at thrift stores is taxed. Accessories like belts, hats, and scarves are taxed.

Services that are taxed include haircuts, car repairs, appliance repair, pest control, and landscaping. Legal services, accounting services, and medical services are generally not taxed. Utilities like electricity and natural gas are not subject to sales tax but are taxed under a separate utility tax system.

Online purchases and out-of-state sellers

If you order something online from a seller outside Virginia, you may still owe Virginia sales tax. The rule changed in 2018 when the U.S. Supreme Court decided that states could require out-of-state sellers to collect sales tax. Now, if an online seller has a physical presence in Virginia (a warehouse, office, or store) or meets federal economic nexus thresholds (roughly $100,000 in sales to Virginia residents in a year), they must collect Virginia sales tax at checkout.

Large online retailers like Amazon, Walmart, and Target already collect Virginia sales tax on orders shipped to Virginia addresses. Smaller sellers may not. If you buy from a seller who did not collect tax, you are technically responsible for paying use tax — Virginia's version of sales tax on out-of-state purchases. In practice, most individuals do not report use tax, but the obligation exists.

Special taxes on vehicles, fuel, and other goods

Cars, motorcycles, and boats are not subject to the standard sales tax. Instead, Virginia charges a separate sales and use tax on motor vehicles of 4.15 percent on the purchase price. This is lower than the standard sales tax rate. The tax is collected when you register the vehicle with the Department of Motor Vehicles, not at the dealership.

Gasoline and diesel fuel are taxed under a separate fuel tax system, not sales tax. Virginia's fuel tax is 26.2 cents per gallon for gasoline and 27.2 cents per gallon for diesel. This tax is built into the price you see at the pump — you do not see it as a separate line item.

Cigarettes and tobacco products are subject to both sales tax and a separate excise tax. Alcoholic beverages are taxed by sales tax plus state and federal excise taxes. These additional taxes are usually included in the shelf price.

Who collects and where the money goes

Retailers collect sales tax at the point of sale and hold it temporarily. They then send the state portion (5.3 percent) to the Virginia Department of Taxation and the local portion to their city or county government. Most retailers file and pay monthly, though very small businesses may file quarterly.

The state uses sales tax revenue for general government operations. Local governments use their portion for schools, roads, police, and other services. Because sales tax is a consumption tax, it affects lower-income households more heavily — a person spending all their income on taxable goods pays a higher percentage of their income in tax than someone who saves or invests.

Tax-free shopping days and exemptions

Virginia does not have an annual tax-free shopping day like some states do. However, certain organizations and individuals are exempt from paying sales tax. Religious organizations, nonprofits, and government agencies can provide exemption certificates to avoid tax on purchases related to their mission. Schools and universities can exempt educational materials and equipment.

If you are disabled and buy equipment prescribed by a doctor — a wheelchair, hearing aid, or prosthetic device — that purchase is exempt from sales tax. Dialysis equipment and oxygen equipment for medical use are also exempt. You will need documentation from your doctor or medical provider to claim the exemption.

Frequently Asked Questions

What is the total sales tax rate in my Virginia city?

Add your local rate to Virginia's 5.3 percent state rate. You can find your local rate on the Virginia Department of Taxation website by entering your city or county name, or check a recent receipt. Most Virginia localities charge between 0.5 and 2.3 percent locally, making total rates range from 5.8 to 7.6 percent.

Do I pay sales tax on groceries?

Only on prepared food. Raw groceries — meat, produce, bread, milk, canned goods — are not taxed. Food prepared for when ready eating, like deli sandwiches, rotisserie chicken, or hot pizza, is taxed at the full rate.

Do I owe tax on something I bought online from out of state?

If the seller collected Virginia sales tax at checkout, no. If they did not, you technically owe Virginia use tax on the purchase, though most individuals do not report it. Large retailers almost always collect the tax automatically.

Are clothes and shoes taxed in Virginia?

Yes, all clothing and shoes are taxed at the full sales tax rate. There is no exemption for children's clothing or any other type of apparel.

How much is the tax on a car purchase in Virginia?

Virginia charges 4.15 percent sales and use tax on vehicles, which is lower than the standard sales tax rate. The tax is collected when you register the vehicle at the DMV, not at the dealership.