Key takeaways
- Virginia sales tax rates: The statewide rate is 5.3% (4.3% state + 1% local), rising to 6% in Northern Virginia, Hampton Roads and Central Virginia and 7% in the Historic Triangle. Groceries are taxed at 1%.
- Economic nexus: Remote sellers must collect once they have $100,000 in sales or 200 transactions in Virginia in the current or previous calendar year. Either threshold triggers a collection obligation.
- Filing & penalties: Returns are due on the 20th of the month after the period. Late filing or payment costs 6% per month, up to 30%, with a $10 minimum.
Virginia sales tax key facts (2026)
| Item | Virginia |
|---|---|
| Statewide rate | 5.3% (4.3% state + 1% local) |
| Regional rates | 6% (NoVA, Hampton Roads, Central VA) / 7% (Historic Triangle) |
| Economic nexus threshold | $100,000 or 200 transactions |
| Sourcing | Origin (in-state) / destination (remote) |
Collect and file Virginia sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
No.
| Item | Virginia |
|---|---|
| Groceries | 1% (state portion removed Jan 1, 2023) |
| Return due date | 20th of the month after the period |
| Governing agency | Virginia Department of Taxation |
What is the sales tax rate in Virginia?
Virginia’s statewide sales tax rate is 5.3% (4.3% state + 1% local). Several regions add a 0.7% regional tax — Northern Virginia, Hampton Roads, and Central Virginia (the Richmond area) — for a 6% total, and the Historic Triangle (Williamsburg, James City County, York County) adds an extra 1% on top for 7%.
Do you have sales tax nexus in Virginia?
Nexus is the connection that obligates your business to collect and remit Virginia sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Virginia, such as:
- Owning or leasing tangible property in the state
- An office, warehouse, or place of business
- Employees, contractors, or sales representatives soliciting business in Virginia
- A distribution center or fulfillment facility
- Advertising targeting Virginia consumers
Economic nexus
Out-of-state sellers establish economic nexus once they have $100,000 or more in sales or at least 200 separate transactions in Virginia during the current or previous calendar year. Either threshold triggers a collection obligation.
What is taxable in Virginia?
Most tangible personal property is taxable, with exemptions such as certain agricultural and industrial equipment, some medical devices, textbooks sold by educational institutions, and certain protective clothing. Services are generally not taxable unless bundled with a taxable product.
Is SaaS taxable in Virginia?
No. Virginia does not tax SaaS. (Downloadable software, however, may be taxable; electronically delivered software is generally exempt.)
How is food taxed in Virginia?
Reduced rate: food for home consumption and essential personal hygiene products are taxed at just 1% — Virginia eliminated the 1.5% state portion of the grocery tax effective January 1, 2023, leaving only the 1% local tax. Hot prepared foods sold for immediate consumption are taxed at the full rate.
How to register for a Virginia sales tax permit
Register with the Virginia Department of Taxation before collecting. Taxually can register for you, or you can apply online through the VATAX system or by mailing Form R-1. Registration is free, and you’ll receive a Certificate of Registration to display.
Have ready: business location, mailing address, contact information, the tax types you’ll be responsible for, and basic business details.
How to collect sales tax in Virginia
Sourcing depends on who you are. In-state sellers collect based on their business location (origin-based). Out-of-state sellers with nexus collect based on the buyer’s destination.
Filing and paying Virginia sales tax
Most businesses file monthly (liability over $100/month); smaller sellers file quarterly ($0–$100/month). Returns are due the 20th of the month following the period (next business day if a weekend or holiday). A dealer discount may apply for timely filing.
File and pay through the VATAX Online Service for Business or by mail (Form ST-9 for in-state, ST-8 for out-of-state). Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Late filing/payment: 6% per month of the unpaid tax, up to 30% (minimum $10, even if no tax is owed).
- Interest accrues daily at the federal underpayment rate plus 2%.
Frequently asked questions
What is the sales tax rate in Virginia in 2026?
The base rate is 5.3% (4.3% state + 1% local). Northern Virginia, Hampton Roads, and Central Virginia are 6%, and the Historic Triangle is 7%.
What is the economic nexus threshold for Virginia?
$100,000 in sales or 200 separate transactions in the current or previous calendar year.
Is SaaS taxable in Virginia?
No. SaaS is not taxable, though downloadable software may be.
How are groceries taxed in Virginia?
Groceries and essential personal hygiene products are taxed at 1% (the 1.5% state portion was removed January 1, 2023). Hot prepared food is taxed at the full rate.
When are Virginia sales tax returns due?
The 20th of the month following your reporting period.
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