The sales tax in Norfolk, Virginia is 6% on most retail purchases. That rate is built from three stacked pieces: Virginia’s 4.3% state tax, a 1% local tax that every Virginia locality collects, and a 0.7% regional transportation tax that applies throughout the Hampton Roads area.1Virginia Tax. Retail Sales and Use Tax2Virginia Code Commission. Virginia Code 58.1-603 – Imposition of Sales Tax Groceries and essential hygiene products are taxed at a reduced 1%, and a handful of categories, including prescription drugs and most medical equipment, are not taxed at all.
What the 6% Applies To
Virginia’s sales tax applies broadly to tangible personal property, meaning anything you can see, weigh, or measure. Clothing, electronics, furniture, appliances, and vehicles all carry the full 6% rate in Norfolk. If you’re buying a physical item at a Norfolk store, assume it’s taxable unless it falls into a specific exemption.
Services are generally not taxed in Virginia. A haircut, a legal consultation, or an accounting fee carries no sales tax. The exception is when a service is bundled inseparably with a physical product. If you hire someone to build custom furniture, the labor priced into the finished piece becomes part of the taxable sale.
Groceries and Personal Hygiene Products
Food purchased for home consumption and essential personal hygiene products are taxed at just 1% in Norfolk.3Virginia Tax. Grocery Tax That 1% is the local portion only. Virginia eliminated its state share on these items effective January 1, 2023, and the Hampton Roads regional tax doesn’t apply to them either.4Virginia Code Commission. Virginia Code 58.1-611.1 – Exemption for Food Purchased for Human Consumption and Essential Personal Hygiene Products
The reduced rate covers standard grocery items like bread, milk, produce, and meat, along with basics like soap and toothpaste. It does not cover prepared meals, restaurant food, or anything sold for immediate consumption, which stay at the full 6%.
What’s Fully Exempt
Certain categories carry no Virginia sales tax at all. The ones most relevant to Norfolk shoppers include:
- Prescription and nonprescription drugs for human use.
- Wheelchairs, braces, durable medical equipment, diabetic supplies, and hearing aids.
- Residential heating fuels such as propane, firewood, coal, and heating oil, which are exempt from the state tax, though the 1% local tax still applies.
- Purchases made with food stamps or WIC benefits.
- Textbooks sold by a local school board or required for college coursework.5Virginia Tax. Sales Tax Exemptions
Digital Goods Are Not Taxed
Virginia does not tax digital products. Software-as-a-service subscriptions, streaming services, downloaded ebooks, mobile apps, and cloud-based software all sit outside the sales tax. The state taxes tangible personal property and a limited list of named services, and digital goods fall into neither. If you sell exclusively digital products from Norfolk, you have no Virginia sales tax to collect on those sales, though other states may tax them.
Buying From Out-of-State Sellers
When you buy something from an out-of-state seller that doesn’t charge Virginia sales tax, you owe consumer use tax directly to the state at the same 6% rate that would have applied in Norfolk.6Virginia Tax. Consumer’s Use Tax Most large online retailers now collect Virginia tax automatically, so this comes up mostly with small online sellers, individual sellers, or niche websites.
You report consumer use tax on your Virginia individual income tax return. If you don’t file a Virginia return but still owe use tax, you file Form CU-7 separately. Out-of-state catalog purchases totaling $100 or less for the calendar year are exempt.6Virginia Tax. Consumer’s Use Tax
Collecting Sales Tax as a Norfolk Business
Any business making retail sales in Norfolk must register with the Virginia Department of Taxation before its first transaction. Registration happens through the Virginia Tax online portal and produces a certificate of registration, which is your authority to collect sales tax on the state’s behalf. You’ll need your Federal Employer Identification Number, the responsible party’s Social Security number, the business address, entity type, and NAICS industry code to apply. Businesses that can’t register online, such as those without a FEIN or reopening a previously closed account, file Form R-1 by mail instead.7Virginia Tax. Register a Business in Virginia
Set your point-of-sale system to the full 6%. Under-collecting because you missed the 0.7% regional piece doesn’t reduce what you owe the state; it just means you absorb the difference.
Filing Frequency and Due Dates
Virginia assigns you a monthly or quarterly filing schedule based on your sales tax liability. Monthly filers submit Form ST-9 by the 20th of the month after the reporting period. Quarterly filers follow the same pattern, with returns due by the 20th of the month after each quarter ends on March 31, June 30, September 30, and December 31.8Virginia Tax. Business FAQs Filing and payment are required electronically through the Virginia Tax portal unless the Department grants a temporary waiver.9Virginia Tax. Virginia Retail Sales and Use Tax Return
The Dealer Discount for Filing on Time
Businesses that file and pay on time keep a small percentage of the state tax they collect. The discount depends on monthly taxable sales volume:10Virginia Tax. Form ST-9 – Virginia Retail Sales and Use Tax Return
- $0 to $62,500 in monthly taxable sales: 1.116% discount on general sales tax.
- $62,501 to $208,000: 0.837%.
- $208,001 and above: 0.558%.
The discount applies only to the state portion, and only if the return and payment arrive on time. Businesses with an average monthly sales tax liability above $20,000 don’t qualify.
Penalties for Late Filing
Missing the 20th-of-the-month deadline triggers a penalty of 6% of the tax owed per month, up to a maximum of 30%. A late return with no tax due still carries a minimum $10 penalty.1Virginia Tax. Retail Sales and Use Tax Interest runs on unpaid balances at the federal underpayment rate plus 2%, compounding daily.11Virginia Tax. Penalties and Interest The penalty is per month, not prorated by day, so filing on the 21st costs the same 6% as filing weeks later within that month.
Virginia’s Annual Sales Tax Holiday
Virginia holds a sales tax holiday weekend each year, typically in early August. For 2026, it runs August 7 through August 9. During the holiday, these categories are exempt from sales tax if each item falls under the listed price:
- School supplies at $20 or less per item.
- Clothing and footwear at $100 or less per item.
- Portable generators at $1,000 or less per item.
- Energy Star or WaterSense products at $2,500 or less per item for noncommercial home use.
- Hurricane preparedness items: gas-powered chainsaws at $350 or less, chainsaw accessories and other specified supplies at $60 or less per item.
The thresholds apply per item, not per transaction. A $90 pair of shoes qualifies; a $110 pair does not.
Deducting Norfolk Sales Tax on Your Federal Return
If you itemize on your federal return, you can choose between deducting Virginia income tax or the sales tax you paid during the year, whichever is larger. You make the election on Schedule A of Form 1040 by checking box 5a. The deduction can be based on your actual receipts or on the IRS’s optional sales tax tables, which estimate the amount from income, family size, and local tax rates.12Internal Revenue Service. Deductible Taxes
The combined deduction for state and local income, sales, and property taxes is capped at $40,000 for most filers in 2025 ($20,000 if married filing separately), with a phasedown at higher incomes and a slightly higher cap for 2026.12Internal Revenue Service. Deductible Taxes Most Norfolk residents come out ahead deducting Virginia income tax, but the sales tax option can win in a year with a major purchase like a car or a boat.