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. Many Virginia cities and counties add their own local tax on top of it, so your total rate depends on where you shop. For example, Arlington County adds 1 percent, bringing the total to 6.3 percent. Fairfax County adds 1 percent as well. Some localities add nothing beyond the state rate.

The tax applies to tangible goods—clothing, groceries, electronics, furniture, and similar items you can touch and take home. Services are generally not taxed in Virginia. A haircut, car repair, or plumbing visit does not trigger sales tax. Groceries for home consumption are exempt, though prepared food and restaurant meals are taxed.

Some items have special rules. Prescription medications are exempt. Non-prescription drugs and vitamins are taxed. Clothing and footwear under $110 per item are exempt, but items over that threshold are taxed on the full price. This means a $120 pair of shoes is taxed on the entire $120, not just the $10 over the limit.

Key Takeaways

  • Virginia's state sales tax is 5.3 percent, but your actual rate is higher if your city or county adds a local tax.
  • Sales tax applies to goods like clothing, electronics, and prepared food, but not to groceries for home cooking or most services.
  • Prescription medications and clothing under $110 are exempt from sales tax.
  • You can find your exact local rate by entering your address on the Virginia Department of Taxation website or asking a retailer.
  • Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a physical presence in Virginia.

Local tax rates vary by city and county

Virginia allows each city and county to set its own local sales tax rate, which stacks on top of the state rate. This means the total you pay at checkout depends entirely on your location. Some localities charge 1 percent local tax, others charge 1.5 percent, and a few charge 2 percent or more.

The Virginia Department of Taxation maintains a complete list of local rates by locality on its website. You can search by city or county name to find your exact combined rate. If you shop in multiple localities—say you live in one county but work in another—you pay the rate of the place where the sale happens, not where you live.

Some Virginia cities are independent and set their own rates separately from the county they sit within. Falls Church, for example, is independent of Fairfax County and has its own rate. Always check the specific city name, not just the county, to be sure.

What happens when you buy online

Online sales tax in Virginia depends on whether the seller has a physical presence in the state. If an out-of-state company has no warehouse, office, or other location in Virginia, they are not required to collect Virginia sales tax at checkout. However, Virginia law requires you to pay use tax on those purchases yourself when you file your state income tax return.

In practice, most people do not report use tax on individual purchases. The Virginia Department of Taxation does not actively pursue small personal purchases, but the obligation exists. Large purchases—a car, business equipment, or significant orders—are more likely to be tracked.

Major online retailers like Amazon, Walmart, and Target now collect Virginia sales tax on most orders because they have distribution centers or other operations in the state. Check your receipt or the retailer's tax policy to see whether tax was charged. If you are unsure whether a seller collected tax, you can contact them directly or check your state tax return instructions.

Tax-exempt purchases and who qualifies

Certain organizations and individuals can make tax-exempt purchases in Virginia. Nonprofits, schools, and government agencies can register for a resale certificate or tax-exempt certificate, which allows them to buy goods without paying sales tax. The organization must provide the certificate to the seller at the time of purchase.

Individual shoppers cannot claim a personal tax exemption just by asking. You pay sales tax on your purchases unless the item itself is exempt by law—like prescription drugs or groceries. If you are buying on behalf of a tax-exempt organization, you need that organization's certificate, not your own.

Resale certificates are different from tax-exempt certificates. A business that buys goods to resell them can use a resale certificate to avoid paying tax on the wholesale purchase, since the tax will be collected when the customer buys the finished product. This prevents double taxation.

How sales tax is collected and reported

Retailers collect sales tax at the point of sale and remit it to the Virginia Department of Taxation. The retailer is responsible for calculating the correct rate based on the customer's location, collecting it from the customer, and sending it to the state. If a retailer fails to collect tax or collects it incorrectly, the retailer is liable for the unpaid amount, not the customer.

Retailers file sales tax returns monthly, quarterly, or annually depending on the amount of tax they owe. High-volume retailers typically file monthly. Smaller businesses may file quarterly or annually. The Virginia Department of Taxation provides filing instructions and important date based on your business size.

If you are a business owner, you must register for a sales tax license before you begin selling taxable goods. You can register online through the Virginia Department of Taxation website. The license is free, but operating without one can result in penalties.

Special situations and exceptions

Virginia offers a sales tax holiday for school supplies and clothing in early August each year. During this period, most school supplies and clothing items under $110 are sold without sales tax. The exact dates change yearly, so check the Virginia Department of Taxation website in July to confirm when the holiday runs.

Energy-related purchases have their own rules. Electricity, natural gas, and other utilities are taxed at a lower rate than general goods—currently 2 percent instead of the full sales tax rate. This applies to residential and business customers.

Motor vehicles are not subject to regular sales tax. Instead, Virginia charges a one-time motor vehicle sales and use tax when you register a vehicle. The rate is 4.15 percent of the vehicle's value. This is separate from sales tax and is handled through the Department of Motor Vehicles, not at the point of sale.

Finding your exact sales tax rate

To find your combined state and local sales tax rate, visit the Virginia Department of Taxation website and use their sales tax rate lookup tool. Enter your city or county name, and the tool will show you the exact rate that applies to purchases made in that location.

You can also call a local retailer and ask what rate they charge. Most cashiers can tell you the combined rate when ready. If you are buying online, the retailer's website should display the tax rate before you complete checkout, or you can contact their customer service.

Keep in mind that your rate may change if you move to a different locality or if a locality changes its rate. Virginia localities adjust their rates occasionally, so if you have not checked in a while, it is worth verifying the current rate.

Frequently Asked Questions

Do I pay sales tax on groceries in Virginia?

No. Groceries purchased for home consumption—bread, milk, vegetables, meat, and similar items—are exempt from sales tax in Virginia. However, prepared foods like deli items, hot foods, and restaurant meals are taxed at the full rate.

What is the difference between sales tax and use tax?

Sales tax is collected by the retailer when you buy something. Use tax is a tax you owe on purchases where sales tax was not collected, such as out-of-state online purchases. You are supposed to report and pay use tax yourself on your state tax return, though enforcement is limited for small personal purchases.

Can I get a refund of sales tax I already paid?

Generally, no. Once you pay sales tax at checkout, it belongs to the state and locality. If you return an item, the retailer refunds the sales tax along with the purchase price. If you believe you were overcharged, contact the retailer first—they can often correct the error or issue a refund.

Is sales tax included in the price shown on the shelf?

No. Prices on shelves and in advertisements in Virginia do not include sales tax. The tax is added at checkout. This is why your total bill is higher than the price tag you saw.

Do I have to pay sales tax on items I buy out of state and bring into Virginia?

If you buy an item in another state where you paid that state's sales tax, you do not owe Virginia sales tax on it. However, if you buy something out of state without paying any sales tax, you technically owe Virginia use tax on it. As with other use tax situations, enforcement on personal purchases is minimal.