Virginia Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in Virginia?

What is taxable in Virginia?

How do you register to collect sales tax in Virginia?

What is the economic nexus threshold for Virginia?

How to register for sales tax in Virginia

Before you can collect sales tax, you need to register with the Virginia Department of Taxation. Here is the step-by-step process.

1. Register online through the Virginia Department of Revenue or tax agency website
2. Provide your FEIN or SSN, business entity type, and business location details
3. Registration is typically free (check for any state-specific fees)
4. Applications are typically processed within 5-10 business days
5. You may need to register with local jurisdictions separately

How to collect sales tax in Virginia

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in Virginia.

1. Determine taxability of each product or service under Virginia rules
2. Calculate the correct combined rate (state + local) based on the delivery destination
3. Virginia uses origin-based sourcing for certain transaction types
4. Charge the correct rate at the point of sale and itemize on receipts and invoices
5. Accept Virginia resale certificates from qualifying wholesale buyers
6. Keep records of all transactions and exemption certificates for at least 3 years

How to file and remit sales tax in Virginia

Filing your sales tax return on time is critical to avoid penalties. Virginia requires electronic filing for most businesses.

1. File electronically through the Virginia tax agency online portal
2. Filing frequency is assigned based on your tax liability: monthly, quarterly, or annually
3. Returns are typically due on the 20th of the month following the reporting period
4. Report gross sales, exempt sales, and taxable sales
5. Pay electronically by the return due date
6. Retain all records for at least 3 years

What is exempt from Virginia sales tax?

Not everything is subject to sales tax. Virginia provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the Virginia Department of Taxation.

• •Sales for resale with a valid Virginia resale certificate
• •Grocery food for home consumption (exempt since 2023)
• •Prescription drugs and certain medical devices
• •Manufacturing machinery and equipment
• •Agricultural inputs including feed, seed, and fertilizer
• •Sales to federal, state, and local governments
• •Qualifying nonprofit organizations with a valid exemption certificate

What are the highest combined sales tax rates in Virginia?

Because Virginia allows local jurisdictions to add their own sales taxes on top of the state rate, combined rates vary by location. Here are some of the highest combined rates in major Virginia cities.

What is use tax in Virginia?

Virginia use tax applies at the same rate as sales tax when you purchase taxable goods from out-of-state vendors who do not collect Virginia sales tax. Businesses must report and pay use tax on their regular sales tax return. Common triggers include online purchases, out-of-state equipment, and supplies from non-collecting vendors.

Does Virginia have marketplace facilitator rules?

Virginia requires marketplace facilitators meeting the economic nexus threshold to collect and remit sales tax on behalf of third-party sellers. Major platforms including Amazon, eBay, Etsy, and Walmart Marketplace collect Virginia sales tax on marketplace transactions. Sellers using marketplace facilitators are not required to collect on marketplace sales but remain responsible for direct sales.

What are the penalties for sales tax non-compliance in Virginia?

Virginia imposes penalties for late filing and late payment, typically 5-10% of the tax due per month (capped at 25%). Interest accrues on unpaid balances at a rate set annually. Failure to file returns can result in the state estimating your liability and potentially revoking your sales tax permit. Fraud or willful evasion can result in criminal penalties including fines and imprisonment.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: Virginia Department of Taxation.