The sales tax rate in Danville, Virginia is 6.3% on most retail purchases. That total combines Virginia’s 4.3% state sales tax, a 1% standard local tax collected by every Virginia locality, and an additional 1% local tax that Danville voters approved in 2021 to fund school construction. Groceries are taxed at a lower 1% rate, and restaurant meals carry a separate 6.5% meals tax on top of the regular sales tax.
How the 6.3% Rate Is Built
Three layers stack on a Danville receipt. The base is Virginia’s statewide sales tax of 4.3%, imposed on every retail sale of physical goods in the Commonwealth.1Virginia Code Commission. Virginia Code 58.1-603 – Imposition of Sales Tax Every Virginia locality adds a standard 1% local sales tax under Code of Virginia § 58.1-605.
Danville adds a third piece: a 1% local option sales tax authorized under Code of Virginia § 58.1-605.1, which qualifying localities can impose to fund school capital projects.2Virginia Code Commission. Virginia Code 58.1-605.1 – Additional Local Sales Tax in Certain Localities Danville voters approved this levy in a 2021 referendum, with roughly 60% in favor. The city projects $141 million in revenue over 20 years to upgrade school facilities and eliminate trailer classrooms.3City of Danville. Voters Approve Sales Tax Referendums for Schools
What the 6.3% Rate Applies To
The full rate hits retail sales of tangible personal property, which Virginia law defines broadly as physical items you can see, weigh, measure, or touch.4Virginia Code Commission. Virginia Code 58.1-602 – Definitions Electronics, clothing, furniture, appliances, and most other goods sold in Danville stores all fall under the 6.3% rate. Tax is calculated on the full sales price, including any charges bundled into that price rather than listed separately.
Most professional services, such as accounting, consulting, or legal work, are not taxed. The line blurs when a service provider includes physical parts or materials on a single invoice. If a repair shop rolls replacement parts into one bill with the labor, the entire transaction can become taxable. Sellers who want to keep the service portion untaxed should itemize parts and labor separately.
Groceries Are Taxed at 1%
Food purchased for home consumption and essential personal hygiene products are taxed at just 1% throughout Virginia, including in Danville.5Virginia Tax. Grocery Tax Virginia eliminated the state portion of the tax on these items effective January 1, 2023. Only the standard 1% local tax under § 58.1-605 still applies. Danville’s additional 1% school construction tax does not reach groceries, because the statute exempting food preserves only the taxes under §§ 58.1-605 and 58.1-606.6Virginia Code Commission. Virginia Code 58.1-611.1 – Exemption for Food Purchased for Human Consumption and Essential Personal Hygiene Products
Bread, milk, produce, canned goods, and personal hygiene items like soap and toothpaste all qualify for the 1% rate. That is why a grocery receipt shows a different tax rate than a hardware store receipt. Prepared foods sold hot or ready to eat at a deli counter generally do not count as “food for home consumption,” and they are taxed at the full 6.3% rate.
Restaurant Meals: 12.8% Combined
Danville imposes a 6.5% meals tax on prepared food and beverages, separate from and in addition to the regular sales tax.7City of Danville. Meals Tax When you eat at a restaurant in Danville, you pay the 6.3% sales tax plus the 6.5% meals tax, for a combined 12.8% on your bill. The 6.5% rate has been in effect since July 1, 2018. It applies to food and drinks from restaurants, fast food establishments, and other vendors selling prepared meals.
Medical and Prescription Exemptions
Certain medical items carry no Virginia sales tax at all. Prescription medications dispensed by a licensed physician, dentist, or other authorized provider are exempt. Nonprescription medicines and drugs purchased for treating or preventing disease in humans are also exempt, regardless of who buys them. Durable medical equipment, along with related parts and supplies purchased by or on behalf of an individual for personal use, qualifies as well.8Virginia Code Commission. Virginia Administrative Code 23VAC10-210-940 – Medicines, Drugs, Eyeglasses, and Related Items
General-purpose medical supplies are a common point of confusion. Adhesive bandages, gauze dressings, and thermometers are not exempt. Virginia’s tax regulations specifically list these items as falling outside the nonprescription drug exemption. Medicaid recipients can purchase otherwise-taxable medical supplies like bandages and wound care products tax-free through a Department of Medical Assistance Services provider agreement.8Virginia Code Commission. Virginia Administrative Code 23VAC10-210-940 – Medicines, Drugs, Eyeglasses, and Related Items
Shipping and Delivery Charges
Delivery charges are not taxable in Virginia so long as they are separately stated on the invoice. If a retailer bundles shipping into the item’s total price without breaking it out, the entire amount becomes part of the taxable sales price. “Delivery charges” means costs for getting the product from the seller to the buyer, including postage and common carrier fees, but not handling charges.9Virginia Code Commission. Virginia Administrative Code 23VAC10-210-6000 – Transportation or Delivery Charges When you order from a Danville retailer, look for an invoice that lists shipping as its own line.
Out-of-State and Online Purchases
If you buy something from an out-of-state seller or online retailer that does not collect Virginia sales tax, you owe consumer’s use tax at the same 6.3% rate that would have applied to a Danville purchase. Most large online retailers already collect Virginia tax, but smaller sellers sometimes do not. When that happens, Virginia expects you to report and pay the use tax yourself.10Virginia Tax. Consumer’s Use Tax The same obligation applies if you buy something in a state with no sales tax and bring it back to Virginia. Many consumers are unaware of this requirement, but it remains legally enforceable.
Virginia’s Annual Sales Tax Holiday
Virginia holds a three-day sales tax holiday each year, typically starting the first Friday in August and running through the following Sunday. During the holiday, qualifying purchases of school supplies, clothing, footwear, hurricane and emergency preparedness items, and Energy Star or WaterSense products are exempt from sales tax.11Federation of Tax Administrators. 2025 Sales Tax Holidays Virginia Tax publishes the official dates, eligible items, and price thresholds closer to the event each year.
If You Sell Goods in Danville
Businesses selling taxable goods in Danville must register with the Virginia Department of Taxation before making their first sale, collect the 6.3% rate at the register, and file returns on the schedule assigned to them (monthly for liability over $100 per month, quarterly otherwise), with returns due on the 20th of the month following the close of each period.12Virginia Tax. Retail Sales and Use Tax Out-of-state sellers cross into Virginia’s collection requirement once they exceed $100,000 in gross retail sales into the state or 200 separate transactions with Virginia buyers in a calendar year.13Virginia Tax. Remote Sellers, Marketplace Facilitators, Economic Nexus