Virginia imposes a 5.3% general sales tax rate in most locations, although higher rates apply in certain regions and localities. If you sell taxable goods or services in Virginia, you may be required to register, collect, and remit sales tax.
Whether you operate a business in Virginia, sell through your own ecommerce website, or are an out-of-state seller that exceeds Virginia’s economic nexus threshold, understanding your obligations is essential to staying compliant.
Virginia Sales Tax at a Glance (2026)
| Topic | Key Information |
| General sales tax rate | 5.3% in most locations |
| Higher regional/local rates | Yes |
| Economic nexus | More than $100,000 in sales OR 200 transactions |
| Grocery food rate | 1% |
| Sales tax registration | Required when applicable |
| Registration and filing | Virginia Tax |
When Do You Have Sales Tax Nexus in Ohio?
You generally have sales tax nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in Virginia.
- Uses a fulfillment center or otherwise maintains a physical presence in Virginia.
- Has more than $100,000 in annual gross retail sales to Virginia customers.
- Makes 200 or more separate retail sales transactions to Virginia customers.
Remote sellers only need to meet one of the economic nexus thresholds, not both. If you establish nexus, you’ll generally need to register and begin collecting Virginia sales tax.
What Is Taxable in Vermont?
Virginia generally taxes retail sales of tangible personal property and certain specifically identified services. Taxable products commonly include:
- Clothing
- Electronics
- Furniture
- Prewritten software
- Certain digital or communications-related products and services
Many professional services are not subject to Virginia sales tax unless they are connected to a taxable sale or specifically made taxable by law.
Common exemptions include:
- Qualifying resale purchases
- Prescription medications
- Certain manufacturing purchases
- Other transactions specifically exempted under Virginia law
Businesses should confirm the tax treatment of their particular products or services before collecting tax.
Virginia Grocery Food Tax
Virginia applies a reduced sales tax rate to qualifying food purchased for home consumption and certain essential personal hygiene products. The applicable rate is 1%, significantly below Virginia’s general sales tax rate.
Prepared food, restaurant meals, alcoholic beverages, and other excluded products generally don’t qualify for this reduced rate. Businesses selling food should therefore ensure their products are classified correctly.
How to Register for Virginia Sales Tax
Businesses required to collect Virginia sales tax must register with Virginia Tax.
The basic process includes:
- Complete Virginia’s online business registration.
- Provide your EIN and business information.
- Register for Retail Sales and Use Tax.
- Receive your Virginia tax account information.
- Begin collecting sales tax when required.
Virginia distinguishes between in-state retailers and out-of-state dealers when establishing sales tax accounts, so businesses should select the correct classification during registration.
Virginia Sales Tax Rates
Virginia’s general sales tax rate is 5.3% in most locations, but some regions and localities impose higher rates. Businesses should verify the rate for each transaction using Virginia Tax’s sales tax rate lookup tool.
Remote sellers generally use destination-based sourcing when goods are shipped to Virginia customers. This means the applicable tax rate is generally based on where the customer receives the product.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, eBay, and Walmart Marketplace generally collect and remit Virginia sales tax when they meet the state’s nexus requirements. If all of your Virginia sales are made through a marketplace facilitator that collects the tax, you generally don’t need to register for Virginia sales tax solely because of those marketplace sales.
Filing Requirements
Businesses registered for Virginia Retail Sales and Use Tax must file returns and remit the tax they’ve collected according to their assigned filing schedule.
Returns and payments are generally handled electronically through Virginia Tax’s online services.
Businesses should:
- Follow their assigned filing frequency.
- Report taxable and exempt sales accurately.
- Keep marketplace and direct sales properly separated.
- File required returns while their account remains active.
Your filing frequency may change as your business activity changes.
Businesses that fail to file or remit Virginia sales tax on time may face late filing penalties, late payment penalties, interest on unpaid tax and collection actions.
Virginia Sales Tax Holiday
Virginia holds an annual three-day sales tax holiday in August.
Qualifying purchases include:
- School supplies costing $20 or less per item
- Clothing and footwear costing $100 or less per item
- Portable generators costing $1,000 or less
- Certain hurricane preparedness products
Businesses selling eligible products should review Virginia Tax’s guidance each year to ensure they apply the exemption correctly.
Virginia Sales Tax Compliance Checklist
- Collect the correct state, regional, and local tax rate.
- Determine which products and services are taxable.
- Determine whether you have physical or economic nexus.
- File all required returns on time.
- Monitor the $100,000 or 200-transaction thresholds.
- Register with Virginia Tax when required.
FAQs
What is the sales tax rate in Virginia?
The general rate is 5.3% in most of Virginia, although higher rates apply in certain areas.
What is Virginia’s economic nexus threshold?
Remote sellers generally establish nexus with more than $100,000 in sales or 200 transactions.
Is food taxable in Virginia?
Yes, qualifying grocery food and certain essential personal hygiene products are generally taxed at a reduced 1% rate.
Do marketplaces collect Virginia sales tax?
Qualifying marketplace facilitators generally collect and remit Virginia sales tax on marketplace transactions.
How are remote sales sourced in Virginia?
Remote sales are generally destination-based, meaning the tax rate is based on where the customer receives the product.
Final Thoughts
Virginia’s sales tax system requires a little more attention than its headline rate suggests because rates vary by location and remote and in-state sellers can face different sourcing rules. Businesses should also monitor Virginia’s $100,000-or-200-transaction economic nexus test and special rules for grocery food and marketplace sales.
Need help with Virginia sales tax registration, filings, or compliance? Contact our tax professionals today.
