The sales tax in Abingdon, VA is 5.3% on most retail purchases, made up of Virginia’s 4.3% state sales tax and Washington County’s 1% local sales tax.1Washington County Virginia. Tax Rate Information Groceries and essential hygiene items are taxed at just 1%, prescription drugs and most medical equipment are exempt, and restaurant meals and hotel rooms carry extra local taxes that bring the total to 12.3%.
What Makes Up the 5.3% Rate
Two layers of tax produce the 5.3% on your receipt. The Commonwealth of Virginia imposes a 4.3% sales and use tax on retail transactions statewide under Virginia Code § 58.1-603.2Virginia Code Commission. Virginia Code 58.1-603 – Imposition of Sales Tax Washington County adds a 1% local option sales tax authorized by Virginia Code § 58.1-605.3Virginia Code Commission. Virginia Code 58.1-605 – Local Sales Taxes
Some Virginia localities charge more. Northern Virginia and Hampton Roads add regional transportation taxes that push their totals above 6%. Abingdon sits in far southwest Virginia, outside those special districts, so 5.3% is the full rate on ordinary goods.
The 5.3% applies to tangible personal property sold at retail: clothing, electronics, furniture, household goods, sporting equipment, and similar merchandise. Services like legal advice, haircuts, and auto repair labor are generally not taxed. When a service transaction includes parts, the parts are taxed even though the labor is not. A mechanic installing new brake pads charges sales tax on the pads only.
Groceries and Hygiene Items: 1%
Food bought for home consumption and essential personal hygiene products like diapers are taxed at 1% in Abingdon. The General Assembly eliminated the state’s share of the grocery tax effective January 1, 2023, leaving only the local 1%.4Virginia Tax. Grocery Tax Virginia Code § 58.1-611.1 removes the state tax on these items while preserving the local taxes under §§ 58.1-605 and 58.1-606.5Virginia Code Commission. Virginia Code 58.1-603.1
The reduced rate covers qualifying food meant to be prepared and eaten at home. Prepared meals, hot food from a deli counter, and food sold for immediate consumption do not qualify; those are taxed at the full 5.3%, plus the meals tax described below.
Prescription Drugs and Medical Equipment: Exempt
Virginia exempts a significant list of medical items from sales tax entirely under Virginia Code § 58.1-609.10. The exempt categories include:
- Prescription medicines and drugs dispensed on a prescription from a licensed physician, dentist, or other authorized practitioner, including free samples distributed by manufacturers6Virginia Tax. Virginia Sales and Use Tax Exemptions
- Nonprescription, over-the-counter medicines intended for human use
- Durable medical equipment such as wheelchairs and braces purchased by or for an individual, along with related parts and supplies; the equipment must withstand repeated use, serve a primarily medical purpose, and be appropriate for home use7Virginia Code Commission. Medicines, Drugs, Eyeglasses, and Related Items
- Drugs and supplies used for hemodialysis and peritoneal dialysis
- Specialized vehicle modifications and communication devices prescribed for individuals with disabilities
The exemption applies at checkout. If a pharmacy or medical supplier charges sales tax on a prescription, that’s a mistake worth flagging.
Restaurant Meals: 12.3% Total
Eating out in Abingdon costs more than the menu suggests. The town levies a 7% meals tax on prepared food and beverages sold by any food establishment, whether you dine in or take it to go.8Town of Abingdon, VA. Abingdon Town Code – ARTICLE IV Meals Tax That tax is charged in addition to the 5.3% sales tax, not instead of it.9Virginia Code Commission. Code of Virginia – Article 7.1 Food and Beverage Tax A $50 dinner tab generates $2.65 in sales tax and $3.50 in meals tax, for a combined 12.3%.
Hotels and Short-Term Rentals: 12.3% Total
Hotels, motels, bed-and-breakfasts, and short-term rentals inside the town limits are subject to a 7% transient occupancy tax on the room charge, on top of the standard 5.3% sales tax. The combined rate on lodging is 12.3%. Washington County charges the same 7% rate in areas outside the town, so visitors see consistent lodging tax across the region.1Washington County Virginia. Tax Rate Information
Online Orders Shipped to Abingdon
The 5.3% rate also applies to online purchases shipped to an Abingdon address. Virginia requires remote sellers to collect and remit sales tax if they meet either threshold in the previous or current calendar year: more than $100,000 in gross Virginia retail revenue, or 200 or more separate retail transactions in the state.10Virginia Code Commission. Virginia Code 58.1-612 – Dealer Defined Sales through a marketplace like Amazon or Etsy count toward the platform’s threshold, because Virginia holds marketplace facilitators responsible for collecting the tax.
If you buy something from a seller that does not collect Virginia sales tax, you technically owe the equivalent amount as use tax. Virginia’s individual income tax return includes a line for reporting use tax on untaxed purchases. Most major online retailers now collect automatically, so this mainly comes up with small out-of-state vendors or private sales.
Buying Inventory for Resale
Businesses that buy goods to resell can avoid paying sales tax on those purchases by giving their supplier a Virginia Sales and Use Tax Certificate of Exemption, Form ST-10. To use the form, the business must first register with the Virginia Department of Taxation and get a 15-digit sales tax account number. The form asks for the dealer’s legal name, address, Virginia tax account number, the supplier’s information, and the purpose of the purchase.
Form ST-10 covers goods bought for resale only. Using it for office supplies, equipment the business will use, or anything else the business consumes is a misuse that can trigger penalties. Virginia requires businesses to keep exemption certificate records for at least three years from the date of the return or the date the tax was paid, whichever is later.