Virginia's sales tax rate and what it covers

Virginia's state sales tax is 5.3 percent. This is the base rate that applies statewide, but your total sales tax bill depends on where you live, because most Virginia cities and counties add their own local tax on top of it. Local rates range from 0.5 percent to 2.3 percent, which means your total sales tax can be anywhere from 5.8 percent to 7.6 percent depending on your location.

The tax applies to most tangible goods you buy in stores—clothing, groceries, electronics, furniture, and similar items. However, Virginia exempts certain things from sales tax: prescription medications, unprepared food bought at grocery stores, and most medical equipment. Services like haircuts, car repairs, and plumbing are generally not taxed, though there are exceptions for things like telecommunications and certain digital services.

When you buy something in a Virginia store, the sales tax is already included in the total price shown at checkout. Online purchases are more complicated: if the seller has a physical presence in Virginia (a warehouse, office, or store), they must collect Virginia sales tax. If they don't, you may owe "use tax" on the purchase when you file your Virginia tax return, though most people do not report this.

Key Takeaways

  • Virginia's base state sales tax is 5.3 percent, but your actual rate depends on your city or county's local addition, which ranges from 0.5 to 2.3 percent.
  • Groceries, prescription medications, and most medical equipment are exempt from sales tax in Virginia.
  • Online sellers with a Virginia location must collect sales tax; those without one typically do not, though you may owe use tax on your state return.
  • Sales tax is collected at the point of sale and sent to the Virginia Department of Taxation, which distributes it to state and local governments.

How local taxes add to the state rate

Every Virginia city and county sets its own local sales tax rate within limits set by state law. The local rate is added directly to the 5.3 percent state rate, so a purchase in Arlington might be taxed at 5.3 percent plus 2.3 percent (Arlington's local rate) for a total of 7.6 percent, while a purchase in a rural county might be only 5.8 percent total.

The local portion of the tax goes to the city or county government to fund schools, roads, and other services. You can find your exact local rate by entering your address on the Virginia Department of Taxation website or by asking a cashier in your area. Some border areas have notably different rates—if you live near the North Carolina or West Virginia line, you might notice significant differences between what you pay on each side.

What items are taxed and what are not

Most physical items are subject to sales tax: clothing, shoes, toys, books, household goods, and electronics all get taxed at your local rate. Groceries are the major exception—unprepared food bought at a grocery store or supermarket is not taxed, which includes bread, milk, vegetables, meat, and canned goods. However, prepared food from a deli counter, restaurant, or food truck is taxed.

Prescription medications are exempt, but over-the-counter drugs like aspirin and cold medicine are taxed. Medical equipment such as wheelchairs, canes, and diabetic supplies are exempt when prescribed by a doctor. Gasoline is taxed, but the tax is built into the pump price rather than added at checkout. Utilities like electricity and natural gas are not subject to sales tax.

Services are generally not taxed in Virginia, with specific exceptions. A haircut is not taxed, but a manicure or pedicure is. Car repairs are not taxed, but car rentals are. This creates gray areas—if you are unsure whether something should be taxed, the Virginia Department of Taxation publishes detailed guidance on its website.

Online purchases and use tax

When you buy something online, whether sales tax is collected depends on whether the seller has what the law calls "nexus" in Virginia—meaning a physical location, employees, or significant business activity in the state. Large retailers like Amazon, Walmart, and Target have Virginia locations, so they collect Virginia sales tax on orders shipped to Virginia addresses. Smaller online sellers without Virginia operations typically do not collect the tax.

If you buy from an out-of-state seller with no Virginia presence, you technically owe "use tax" on that purchase. Use tax is the same rate as sales tax and is meant to level the playing field between online and in-store shopping. However, it is collected through your state income tax return, and most individuals do not report use tax purchases. Virginia does not actively pursue individual use tax claims, though businesses are expected to report and pay it.

Who collects and where the money goes

Retailers collect sales tax at the point of sale and send it to the Virginia Department of Taxation, usually monthly or quarterly depending on the business size. The state keeps the 5.3 percent state portion and distributes the local portion to the city or county where the sale occurred. This means a purchase in Richmond sends money to Richmond's city government, while a purchase in Fairfax County sends money to the county.

The state uses its portion of sales tax revenue for general operations, education funding, and infrastructure. Local governments use their portion for schools, police and fire departments, road maintenance, and other services. The split between state and local varies slightly depending on the type of business, but the basic principle is that money stays in the locality where it was collected.

Special sales tax situations and exceptions

Virginia offers a sales tax holiday in early August for school supplies and clothing. During this period, items like notebooks, pens, backpacks, and clothes under $100 per item are not taxed. The exact dates change each year, so check the Virginia Department of Taxation website in July for the current schedule.

Certain organizations are exempt from paying sales tax: nonprofits, schools, and government agencies can buy items tax-free if they have the proper exemption certificate. If you work for an exempt organization, you cannot use that exemption for personal purchases. Resellers who buy items to resell must have a resale certificate to avoid paying sales tax on their inventory.

Trade-ins and exchanges are handled differently depending on the situation. When you trade in a used car toward a new one, Virginia allows you to pay sales tax only on the difference in price, not the full price of the new car. This is called the "trade-in allowance" and can save you money on large purchases.

Frequently Asked Questions

What is the total sales tax rate where I live?

Virginia's state rate is 5.3 percent, but your total depends on your local rate. Visit the Virginia Department of Taxation website and enter your address, or call your city or county tax assessor's office. Local rates range from 0.5 to 2.3 percent, so your total could be anywhere from 5.8 to 7.6 percent.

Why is sales tax different in different Virginia cities?

Each city and county sets its own local sales tax rate to fund schools, roads, and services. A wealthy suburb might set a lower rate because it needs less revenue, while a city with more infrastructure needs might set a higher rate. The state sets a cap on how high local rates can go.

Do I have to pay sales tax on groceries?

No, unprepared groceries are exempt. This includes bread, milk, vegetables, meat, eggs, and canned goods bought at a supermarket. However, prepared foods like deli sandwiches, rotisserie chicken, and restaurant meals are taxed. Some items blur the line—ask the cashier if you are unsure.

Do I owe tax on things I buy online from out-of-state sellers?

Technically yes, through use tax on your state return, but Virginia does not actively pursue individual use tax claims. Large online retailers with Virginia operations already collect sales tax. If you buy from a small seller with no Virginia presence, you may owe use tax, though most people do not report it.

Can I get a refund if I paid sales tax by mistake?

If you paid sales tax on an exempt item like a prescription medication, contact the store with your receipt. Most retailers will refund the tax difference. If the store refuses, you can file a claim with the Virginia Department of Taxation, though this is rare for small amounts.