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 set by the state government and applies statewide. Some cities and counties add a local tax on top of the state rate, which can range from 0.5 to 2.3 percent depending on where you shop. The total tax you pay at checkout is the combination of state and local rates.

The 5.3 percent state rate applies to clothing, electronics, furniture, groceries, and most other items. However, Virginia excludes certain things from sales tax entirely. Food you buy at a grocery store to cook at home is not taxed, but prepared food from a restaurant or deli counter is. Prescription medications are not taxed, but over-the-counter drugs and vitamins are. This distinction matters because the same item can be taxed or untaxed depending on how you buy it.

Key Takeaways

  • Virginia's state sales tax is 5.3 percent, and your city or county may add 0.5 to 2.3 percent on top of that amount.
  • Groceries for home cooking are not taxed, but restaurant meals and prepared foods are taxed at the full rate.
  • Prescription drugs are exempt from sales tax, but over-the-counter medicines and supplements are taxed.
  • 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 certain sales thresholds.

Local sales tax rates by region

Virginia does not have a uniform local sales tax across all counties and cities. Instead, each locality sets its own rate within limits set by state law. Northern Virginia counties like Fairfax, Arlington, and Loudoun typically have higher local rates, often between 1.5 and 2.3 percent. Rural areas and smaller cities may have lower local rates or none at all.

To find your exact local rate, you need to know both your county and your city, since they can differ. A resident of Richmond city pays a different rate than someone in Henrico County just outside the city limits. The Virginia Department of Taxation publishes a complete list of local rates by jurisdiction on its website. When you buy something, the store's register automatically applies the correct rate for that location.

What is and is not taxed in Virginia

Understanding what Virginia taxes and what it does not requires knowing the difference between categories. Unprepared food — raw meat, vegetables, bread, milk, eggs — is not taxed when you buy it at a grocery store. The moment that same food is prepared for immediate consumption, such as at a restaurant, deli, or food truck, it becomes taxable. This applies even if you buy a rotisserie chicken from a grocery store's prepared foods section.

Clothing and footwear are not taxed in Virginia, which is one of the few states with this exemption. This applies to everyday clothing, work uniforms, and shoes. However, accessories like hats, belts, and jewelry are taxed. Protective equipment such as hard hats or safety goggles used for work is also taxed. The exemption is narrow and applies only to items worn on the body.

Services are generally not taxed in Virginia, with specific exceptions. Haircuts, car repairs, and plumbing work are not subject to sales tax. However, certain services are taxed: hotel rooms, rental cars, and admission to entertainment venues all carry the full sales tax rate. Telecommunications services like cell phone plans and internet are taxed.

How sales tax applies to online and mail orders

If you order something online from a Virginia-based business, Virginia sales tax applies to your purchase. If you order from an out-of-state seller, the rules depend on whether that seller has what the law calls "nexus" in Virginia — meaning a warehouse, office, or other physical location in the state. Large online retailers like Amazon and Walmart collect Virginia sales tax on orders shipped to Virginia addresses because they have distribution centers in the state.

Small out-of-state sellers without a physical presence in Virginia may not collect sales tax at checkout. However, Virginia law requires you to pay what is called "use tax" on those purchases when you file your state income tax return. Use tax is the same rate as sales tax and covers items you bought out of state but use in Virginia. Most individual taxpayers do not report use tax, but the obligation exists in the law.

Sales tax on vehicles and special items

Vehicles are taxed differently than regular purchases in Virginia. When you buy a car, truck, or motorcycle, you pay sales tax on the full purchase price at the time of registration with the Department of Motor Vehicles, not at the dealership. The tax rate is the state rate of 5.3 percent plus your local rate. If you trade in a vehicle, Virginia allows you to subtract the trade-in value from the purchase price before calculating tax, which reduces the amount you owe.

Boats and aircraft follow similar rules to vehicles. Gasoline and diesel fuel are taxed at a different rate than general sales tax — fuel has its own excise tax set by the state. Cigarettes and alcohol are also taxed separately through excise taxes rather than through the general sales tax system. These special taxes are in addition to any sales tax that might apply to the container or packaging.

How to calculate your total cost at checkout

The price tag on an item in a Virginia store does not include sales tax. To find your total cost, you multiply the price by your combined state and local tax rate. If you live in an area with a 5.3 percent state rate and a 1 percent local rate, your total rate is 6.3 percent. A $100 item costs $106.30 after tax. Most store registers calculate this automatically, but understanding the math helps you budget.

Some items are taxed at different rates depending on what they are. If you buy a shirt (not taxed) and a pair of socks (taxed), each item is taxed according to its category. The register separates these calculations. When you see your receipt, you can usually see which items were taxed and which were not, though the format varies by store.

Frequently Asked Questions

Do I pay sales tax on groceries in Virginia?

No, unprepared groceries like raw meat, vegetables, and bread are not taxed. Prepared foods from a deli counter, restaurant, or food truck are taxed at the full rate. The distinction is whether the food is ready to eat immediately.

What is the sales tax rate where I live?

Virginia's state rate is 5.3 percent. Your total rate depends on your city and county. The Virginia Department of Taxation website has a lookup tool where you enter your address and see your exact local rate.

Are clothes taxed in Virginia?

No, clothing and footwear worn on the body are not taxed in Virginia. Accessories like belts, hats, and jewelry are taxed. Work uniforms and protective equipment are also taxed.

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

If the seller has a physical presence in Virginia or meets certain sales thresholds, they collect Virginia tax at checkout. If they do not, you technically owe use tax on those purchases, though most individuals do not report it.

How is sales tax calculated on a car purchase?

You pay sales tax when you register the vehicle with the Department of Motor Vehicles, not at the dealership. The tax is 5.3 percent plus your local rate, applied to the purchase price minus any trade-in value.