The Virginia sales tax rate is 5.3% across most of the state, 6% in Northern Virginia, and 7% in the Historic Triangle around Williamsburg. That combined rate is built from a 4.3% state tax, a 1% mandatory local tax, and, in two regions, an additional surcharge for transportation and tourism. Groceries and essential hygiene items are taxed at just 1% statewide, and some purchases are fully exempt.
Rates by Region
Every purchase in Virginia carries the 4.3% state tax plus the 1% local tax that applies everywhere in the Commonwealth.1Virginia Code Commission. Virginia Code 58.1-603 – Imposition of Sales Tax Two regions add more on top of that baseline:
- 5.3% — most of Virginia
- 6% — Northern Virginia: Alexandria, Arlington, Fairfax City, Fairfax County, Falls Church, Loudoun, Manassas, Manassas Park, and Prince William
- 7% — the Historic Triangle: James City County, Williamsburg, and York County
The extra percentage point in Northern Virginia funds regional transportation. The Historic Triangle’s additional 1.7% supports transportation and tourism infrastructure.2Virginia Department of Taxation. Retail Sales and Use Tax
The rate is set by where the buyer receives the goods, not where the seller is located. Order something online to a Fairfax address, and you pay 6%, even if the shipper is in Richmond.
What Virginia Taxes
Virginia’s sales tax applies to the retail sale, lease, or rental of tangible personal property. Clothing, electronics, furniture, household goods, building materials, sporting equipment, and most other physical merchandise are all covered.1Virginia Code Commission. Virginia Code 58.1-603 – Imposition of Sales Tax
Services are generally not taxed. The exception is when a service is bundled with the sale of a physical product. Labor charges included in the sale, rental, or lease of a product are taxable because they fall inside the statutory definition of “sales price.”3Virginia Code Commission. 23 Virginia Admin Code 10-210-763 – Innovative High Technology Industries Sales Repair and replacement parts installed on motor vehicles are taxable too, even when the customer owns the vehicle the whole time.4Legal Information Institute (LII). 23 Virginia Admin Code 10-210-990 – Motor Vehicle Sales, Leases, and Rentals, Repair and Replacement Parts, and Maintenance Materials
Digital Products and Software
Virginia does not tax digital goods. Streaming services, downloaded music, ebooks, and software-as-a-service products all fall outside the state’s sales tax because the tax is limited to tangible personal property and a narrow list of enumerated services. Custom software written for a single customer is specifically excluded from the definition of tangible personal property, so it is also not taxable.5Virginia Tax. Sales Tax Exemptions Off-the-shelf software sold on a physical disc, however, counts as tangible personal property and is taxed.
Groceries and Hygiene Products: 1%
Food for home consumption and essential personal hygiene products are taxed at 1% statewide.6Virginia Tax. Grocery Tax Virginia eliminated the state portion of the tax on these items as of January 1, 2023; the 1% that remains is the local piece.7Virginia Code Commission. Virginia Code 58.1-611.1 – Exemption for Food Purchased for Human Consumption
“Food for home consumption” follows the federal food stamp definition, so most unprepared grocery items qualify. Prepared meals from restaurants and fast-food establishments do not. Those are taxed at the full local rate.
Full Exemptions
Some purchases are fully exempt from sales tax:5Virginia Tax. Sales Tax Exemptions
- Prescription medications
- Sales to the federal government, the Commonwealth, and Virginia’s political subdivisions
- Raw materials and components sold to manufacturers for incorporation into products they will sell
- Crops, meat, poultry, seafood, and other agricultural products sold to someone who will use them to manufacture a product for resale
- Sales to qualifying nonprofit organizations
Motor Vehicles Are Taxed Differently
Cars, trucks, and motorcycles don’t run through the regular sales tax system. Virginia charges a separate 4.15% sales and use tax on motor vehicles, collected by the DMV when you title the vehicle.8Virginia DMV. Motor Vehicle Sales and Use Tax The rate applies whether you buy from a dealership, a private seller, or out of state, and it is based on the vehicle’s gross sales price or fair market value. You pay it as a condition of titling, not at the point of sale.
Buying From Out of State
Buy something from an out-of-state seller that doesn’t collect Virginia sales tax, and you owe consumer use tax on it. The rate is the same as the sales tax rate for your locality. Online purchases from retailers without Virginia collection obligations and items you bring home from out-of-state trips are the usual triggers.9Virginia Department of Taxation. Consumer’s Use Tax for Individuals
There is a small-purchase break for individuals. Mail-order catalog purchases totaling $100 or less for the entire calendar year are exempt from use tax. Go over that, and you owe tax on the full amount, not just the excess. You report and pay consumer use tax on your Virginia income tax return. If you don’t file an income tax return but still owe use tax, you file Form CU-7 separately.9Virginia Department of Taxation. Consumer’s Use Tax for Individuals
The Annual Sales Tax Holiday
Virginia holds a sales tax holiday each year on the first weekend in August, running from Friday at 12:01 a.m. through Sunday at 11:59 p.m. Based on the established pattern, the 2026 holiday would fall on August 7-9. Qualifying items are exempt from sales tax during the holiday if they meet these per-item price caps:10Virginia Department of Taxation. Virginia Sales Tax Holiday
- School supplies: $20 or less per item
- Clothing and footwear: $100 or less per item
- Portable generators: $1,000 or less per item
- Gas-powered chainsaws: $350 or less per item
- Other hurricane preparedness items: $60 or less per item
- Energy Star and WaterSense products: $2,500 or less per item, for noncommercial home use only
The cap is per item, not per transaction. A $90 jacket and a $90 pair of shoes each qualify on their own even though the total goes over $100. A single $110 coat, on the other hand, doesn’t qualify at all. You pay tax on the whole price, not just the amount above the cap.