Virginia Sales Tax Guide 2025: Compliance, Rates, Guidelines

Are you navigating the complexities of Virginia’s taxation system? Whether you’re a resident, business owner, or planning a move to the Old Dominion State, understanding Virginia’s tax obligations is essential to managing your finances efficiently. This guide will walk you through everything you need to know about Virginia’s state taxes, including sales tax, exemptions, and much more.

Virginia Sales Tax

Virginia sales tax law, established in 1966, imposes a 4.3% state sales tax on retail goods and services, with additional local taxes up to 1.7%. Sales tax in Virginia includes the Virginia sales and use tax, ensuring compliance for in-state and remote purchases.

Virginia Sales Tax Rate

Virginia’s base sales tax rate is 4.3%, with an additional mandatory local rate of 1%, resulting in a total sales tax range of 5.3% to 7%, depending on the locality.

Jurisdiction	Sales Tax Rate
State Tax	4.30%
Mandatory Local Tax	1.00%
County and City Tax	0%–2.70%
Special Tax	0.00%
Combined Tax	5.30%–7.00%

For more information on city-based tax rates in Virginia, check out Kintsugi’s City Level Sales Tax Guides.

Virginia Sales Tax Calculator

Imagine you own a retail store in Richmond, Virginia, where the total sales tax rate is 6% (4.3% state tax + 1% mandatory local tax + 0.7% additional local tax). A customer purchases a piece of furniture priced at $800, and you need to calculate the sales tax and the total amount the customer will pay.

Step 1: Determine the Total Sales Tax Rate

Virginia’s total sales tax rate is a combination of:

• State Sales Tax Rate: 4.3%
• Mandatory Local Tax Rate: 1.0%
• Additional Local Tax Rate in Richmond: 0.7%

Use the formula for calculating the total sales tax rate:

Total Sales Tax Rate = State Tax Rate + Mandatory Local Rate + Additional Local Rate

Plug in the values:

4.3% + 1.0% + 0.7% = 6.0%  (or 0.06 in decimal form)

Step 2: Calculate the Sales Tax

Use the formula for calculating sales tax:

Sales Tax = Item Price × Total Sales Tax Rate

Plug in the values:

Sales Tax = 800 × 0.06 = 48

The sales tax on the $800 piece of furniture is $48.00.

Step 3: Calculate the Total Price

Add the sales tax to the original price of the item to determine the total amount the customer will pay:

Total Price = Item Price + Sales Tax

800 + 48 = 848

Final Answer:

The total price of the furniture, including sales tax, is $848.00.

Additional Considerations:

1. Local Tax Variations: Different localities in Virginia may have varying additional local tax rates, which can affect the total sales tax rate. Check the specific rate for your locality using the Virginia Tax Rate Lookup.
2. Exemptions: Certain items, such as prescription drugs and some groceries, may be taxed at reduced rates or exempt entirely.
3. Remote Sellers: Businesses selling online to Virginia customers must calculate sales tax based on the customer’s location if economic nexus thresholds are met.

By following this method, businesses in Virginia can accurately calculate sales tax and comply with state and local regulations.

FAQ on Sales Tax in Virginia

What is the Sales Tax Rate in Virginia?

Virginia’s sales tax rate ranges from 5.3% to 7%, including the 4.3% state tax, a 1% mandatory local tax, and additional local taxes up to 2.7%, while the consumer's use tax applies to out-of-state purchases.

How to Calculate Sales Tax in Virginia?

Multiply the item price by the combined state and local sales tax rate. For example, on a $100 item at 6% total tax: $100 × 0.06 = $6.

How is the Virginia Communications Sales Tax Calculated?

The Virginia Communications Sales Tax is a flat 5% rate applied to telecommunications services, including cable, phone, and internet services.

Is Sales Tax Calculated Before or After Discounts in Virginia?

Sales tax in Virginia is calculated after discounts are applied to the item’s price.

How to Calculate Vehicle Sales Tax in Virginia?

Vehicle sales tax in Virginia is calculated at a rate of 4.15% of the vehicle’s sale price or market value, whichever is higher. Additional local fees may apply.

Sales Tax Nexus in Virginia Sales

Virginia’s base sales tax rate is 4.3%, and businesses must register for sales tax collection if they meet physical or economic nexus thresholds.

Effective Date	Threshold	Includable Sales (Gross, Retail, or Taxable)	When You Need to Register
July 1, 2019	$100,000 in retail sales or 200 transactions annually	Retail Sales	Upon exceeding the threshold in the current or previous calendar year.
Ongoing	Any physical presence in Virginia	Retail and Taxable Sales	Immediately upon establishing a physical presence, such as an office, warehouse, or employees.

FAQ on Sales Tax Nexus in Virginia

What is Nexus in Virginia Sales Tax?

Nexus in Virginia sales tax refers to the connection a business has with the state, requiring it to collect and remit sales tax, established through physical or economic presence.

What Constitutes Sales Tax Nexus in Virginia?

Sales tax nexus in Virginia is established by physical presence (e.g., office, employees) or economic thresholds of $100,000 in gross sales or 200 or more transactions annually.

Virginia Sales Tax Exemptions

Virginia offers a variety of sales tax exemptions to support specific industries, nonprofit organizations, and government entities. These exemptions include purchases related to manufacturing, agriculture, and educational institutions, among others, to reduce costs and encourage economic development.

Category	Exemption Description
Manufacturing Equipment	Machinery and tools used directly in manufacturing or production are exempt from sales tax.
Agricultural Supplies	Items like seeds, fertilizers, and equipment used in farming activities are exempt.
Nonprofit Organizations	Qualifying nonprofits are exempt for purchases related to their charitable missions.
Government Purchases	Sales to federal, state, and local government entities are exempt from sales tax.
Educational Institutions	Purchases by qualifying schools, colleges, and universities are exempt when used directly for educational purposes.
Resale Items	Goods purchased for resale are exempt when a valid resale certificate is provided.
Prescription Drugs	Prescription medications and certain medical devices are exempt from sales tax.

FAQ on Sales Tax Exemptions in Virginia

How do I Apply for a Virginia Sales Tax Exemption Certificate?

To apply for a Virginia Sales Tax Exemption Certificate, businesses must complete and submit Form ST-10 to eligible sellers. This certificate verifies the purchase is exempt from sales tax under Virginia law. Full instructions and the form are available on the Virginia Department of Taxation website.

What is the Virginia State Sales Tax Exemption?

Virginia offers sales tax exemptions for manufacturing equipment, agricultural supplies, nonprofit organizations, government purchases, and resale items. These exemptions are aimed at reducing costs and encouraging business growth. Learn more in this blog on Virginia State Sales Tax Exemptions.

What is the Virginia SaaS Sales Tax?

SaaS (Software as a Service) is generally taxable in Virginia as it is considered a digital product or service. For a deeper look, read this blog on Virginia SaaS Sales Tax.

What is the Sales Tax on Digital Products in Virginia?

Virginia taxes digital products, such as e-books and software downloads, at the same rate as tangible goods. Explore the topic further in this blog on digital product taxation in Virginia.

What are Virginia State Exemptions?

Virginia state exemptions include items used in manufacturing, agricultural production, resale, and certain nonprofit or government purchases. A detailed exemption list can be found on the Virginia Tax website.

What is Exempt from Sales Tax in Virginia?

Exemptions in Virginia include prescription drugs, agricultural supplies, manufacturing equipment, and nonprofit-related purchases. Items for resale are also exempt when purchased with a valid resale certificate.

How to Apply for Sales Tax Exemption in Virginia?

To apply for a sales tax exemption, complete the appropriate exemption certificate (e.g., Form ST-10) and provide it to sellers at the time of purchase. Businesses must register for sales tax with the Virginia Department of Taxation to ensure compliance.

What Items are Exempt from Sales Tax in Virginia?

Exempt items in Virginia include prescription medications, certain medical devices, manufacturing equipment, and agricultural supplies. A complete list is available on the Virginia Tax website.

Are Digital Products Taxable in Virginia?

Yes, digital products such as e-books, software, and music downloads are generally taxable in Virginia, as they are treated similarly to tangible personal property.

What is the Sales Tax in VA on Electronics?

Electronics in Virginia are taxed at the combined state and local sales tax rate, ranging from 5.3% to 7%, depending on the locality.

Is Clothing Taxable in Virginia?

Yes, clothing is subject to the full combined sales tax rate in Virginia, which ranges from 5.3% to 7%, based on local tax rates

Is there Sales Tax on Clothing in Virginia?

Yes, Virginia imposes sales tax on clothing, applying the same combined rate as for other tangible goods.

Virginia Sales Tax Filing

What are the Virginia Sales Tax Filing Requirements?

Virginia businesses must file sales tax returns electronically through the Virginia Tax website. Filing frequency (monthly, quarterly, or annually) is determined by the volume of taxable sales.

How do I File Sales Tax in Virginia?

Sales tax returns can be filed electronically through the Virginia Tax e-File system. Businesses report gross sales, taxable sales, and tax collected during the filing period.

How to File an Amended Sales Tax Return in Virginia?

To file an amended return, log in to the Virginia Tax portal, access the specific return, and make the necessary corrections. Submit the updated return and pay any additional tax owed or request a refund.

How can I Apply for Virginia Sales Tax Registration?

Registering for sales tax in Virginia is essential for businesses selling taxable goods or services within the state. The Virginia Department of Taxation provides an easy-to-use online portal to complete the registration and ensure compliance with state tax laws.

1. Visit the Virginia Department of Taxation Website: Navigate to the Virginia Tax Payments page and locate the link to access the VATAX Online Services for Businesses.
2. Create an Online Account: If you are a first-time user, click on “Enroll Now” to create an account. Provide your email address, create a secure password, and follow the prompts to verify your account.
3. Log In to Your VATAX Account: Use your newly created credentials to log in to your account. From the dashboard, select the option to "Register a New Business."
4. Select Tax Types: Choose “Sales and Use Tax” as the tax type for which you are registering. This ensures you’ll receive the proper sales tax permit.
5. Provide Business Information:
   • Legal Business Name and Structure: Sole proprietorship, partnership, LLC, or corporation.
   • Federal Employer Identification Number (FEIN) or Social Security Number for sole proprietors.
   • Business Address: Include the physical and mailing addresses.
   • Description of Business Activities: Specify the type of goods or services your business will sell.
6. Enter Sales Details: Specify the start date for your taxable sales activities in Virginia and indicate whether you have multiple locations in the state.
7. Review and Submit Application: Carefully review the information entered to ensure accuracy. Once confirmed, submit the application electronically.
8. Receive Your Sales Tax Permit: After processing your application, you will receive your Virginia sales tax certificate of registration, which allows you to collect and remit sales tax.
9. Begin Collecting and Filing Sales Tax: Start collecting Virginia’s combined state (4.3%) and local sales tax rates. Use the online portal to file and remit your sales tax returns based on your assigned filing frequency.

By following these steps, businesses can efficiently complete their sales tax registration in Virginia and stay compliant with state tax regulations. For further assistance, visit the Virginia Department of Taxation website.

Virginia Sales Tax Due Date

Filing Frequency	Due Date
Monthly	20th of the following month
Quarterly	20th of the month following the quarter's end
Annually	January 20th of the following year

What Day is Virginia Sales Tax Due?

Virginia sales tax is due on the 20th of the month following the reporting period.

What is the Penalty for Filing Sales Tax Late in Virginia?

Late filing penalties include 6% per month on the unpaid tax, up to a maximum of 30%, plus interest on the outstanding balance. Additional penalties may apply for prolonged delays.

For More Information

For more information on how to file your sales tax, visit the Virginia Sales Tax Revenue Service website.****