The Newport News sales tax is 6 percent on most retail purchases. That total is built from a 4.3 percent Virginia state tax, a 1 percent local tax, and a 0.7 percent regional tax that funds Hampton Roads transportation projects.1Virginia Tax. Ruling 18-85 Some purchases carry a different rate, and a few are exempt.
How the 6 Percent Breaks Down
Virginia imposes a 4.3 percent state tax on sales of tangible personal property, and the same rate applies as a use tax when residents store or use property bought out of state.2Virginia Code Commission. Virginia Code 58.1-603 – Imposition of Sales Tax3Virginia Code Commission. Virginia Code 58.1-604 – Imposition of Use Tax Every locality in the state adds a 1 percent local option tax on top. Newport News sits inside the Hampton Roads planning district, which adds another 0.7 percent dedicated to the Hampton Roads Transportation Fund for highway and bridge work on the peninsula. The three layers combine to 6 percent.
What You Pay on Specific Purchases
Groceries and Hygiene Products
Food bought for home consumption and essential personal hygiene products are taxed at 1 percent in Newport News. Virginia eliminated its state portion of the tax on these items effective January 1, 2023, leaving only the 1 percent local piece.4Virginia Tax. Grocery Tax5Virginia Code Commission. Virginia Code 58.1-611.1 – Exemption for Food Purchased for Human Consumption The 0.7 percent Hampton Roads regional tax does not apply either. This covers shelf-stable foods, fresh produce, and items such as feminine hygiene products.
Prescription Drugs and Medical Equipment
Prescription medicines are fully exempt. The exemption also reaches prosthetic devices, wheelchairs, and durable medical equipment such as oxygen equipment purchased for individual use with a documented medical need.
Cars and Trucks
Titled vehicles do not follow the 6 percent rate. Virginia charges a separate 4.15 percent motor vehicle sales and use tax, collected by the DMV at titling rather than at the dealership.6Virginia Department of Motor Vehicles. Motor Vehicle Sales and Use Tax The minimum is $75. The taxable amount is the gross sales price after manufacturer rebates and including the dealer processing fee, with no reduction for trade-in credits or unpaid liens.
Services
Most services are not taxed in Virginia. Professional consulting, standalone labor, and repair work billed separately from parts fall outside the sales tax. When a service is bundled into the price of a product with no separate line items, the whole transaction becomes taxable at 6 percent. That is why contractors and repair shops list parts and labor separately.
Restaurant Meals and Hotel Stays
Newport News adds a 7.5 percent food and beverage tax on prepared meals from restaurants, caterers, and similar sellers.7Newport News, VA – Official Website. Food and Beverage Tax That sits on top of the 6 percent sales tax, so a restaurant check in the city carries a combined 13.5 percent in tax. Groceries bought for home consumption are not subject to the meals tax.
Short-term lodging providers collect a flat $1.00 per room per night on stays of 30 consecutive days or fewer.8Newport News, VA – Official Website. Lodging Flat Tax Hotels remit it to the Commissioner of the Revenue by the 20th of the month after collection.9Newport News, VA – Official Website. Transient Room Tax
Registering a Business To Collect Sales Tax
Before your first taxable sale in Newport News, register with Virginia Tax. Since 2024, new business registrations are completed online through the Virginia Tax portal; the old paper Form R-1 now simply points applicants to the online system.10Virginia Department of Taxation. Business Registration Form R-1 You need a Federal Employer Identification Number from the IRS first.
The online application asks for the legal business name, physical and mailing addresses, the date you plan to begin sales, and the tax account types you need. Virginia Tax uses the expected tax liability to assign you a monthly or quarterly filing frequency.
Filing Returns and Paying the Tax
Returns are due on the 20th of the month after the close of each filing period, even if you had no sales.11Virginia Tax. Retail Sales and Use Tax Monthly filers report each calendar month. Quarterly filers follow the standard schedule: January through March is due April 20, April through June is due July 20, and so on. You log in to the Virginia Tax portal, enter gross sales and exempt sales for the period, let the system calculate the tax, and authorize payment from your business bank account.
Late Filing Penalties and Interest
A late return triggers a penalty of 5 percent of the tax due for the first month, with another 5 percent for each additional month outstanding, capped at 25 percent. The minimum penalty is $10 even when no tax is owed.12Virginia Tax. Ruling 85-112 Interest also accrues on unpaid balances; the rate for the first quarter of 2026 is 9 percent annually.13Virginia Tax. Virginia Interest Rates Remain 9% for the 1st Quarter of 2026 Repeated failure to file can lead local authorities to revoke your business license.
Buying Inventory for Resale
If you buy goods to resell, you can avoid paying sales tax on those purchases by giving your supplier a completed Form ST-10, Virginia’s Sales and Use Tax Certificate of Exemption. It covers tangible personal property bought for resale, items for taxable lease or rental, and packaging materials shipped with the product.14Virginia Department of Taxation. Sales and Use Tax Certificate of Exemption Form ST-10 One properly completed ST-10 per dealer stays on file until the Virginia Department of Taxation revokes it in writing. Construction contractors buying materials they will use or consume on a job cannot use the ST-10.
Out-of-State and Online Sellers
Businesses outside Virginia must collect the 6 percent Newport News rate on shipments to local addresses once they cross either of two thresholds in the previous or current calendar year: more than $100,000 in gross Virginia sales, or 200 or more separate retail transactions in the state.15Virginia Code Commission. Virginia Code 58.1-612 – Tax Collectible From Dealers Once you cross a threshold, you have 30 days to begin collecting.
Marketplace facilitators such as Amazon and Etsy are treated as dealers under Virginia law and collect tax on every sale they facilitate. If you sell only through a marketplace facilitator, those sales do not count toward your personal nexus thresholds, and you generally do not need to register separately.16Virginia Law. Virginia Code 58.1-612.1 – Tax Collectible From Marketplace Facilitators