Sales Tax Rules
Virginia imposes a state sales tax rate of 4.3%, with a maximum combined rate (state plus local) of 7% when local taxes are added. Economic nexus is triggered at $100,000 in sales or 200 transactions — meaning out-of-state businesses that exceed this threshold must collect and remit Virginia sales tax. SaaS and digital software products are generally exempt from sales tax in Virginia. Groceries are exempt from state sales tax.
SaaS Tax Details
SaaS is exempt as it is considered a service.
Grocery Details
State tax is 0%; 1% local tax typically applies.
What is the sales tax rate in Virginia?
Virginia's state sales tax rate is 4.3%. When local taxes are added, the maximum combined rate can reach 7%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Virginia?
Virginia requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales or 200 transactions in a calendar year. Once nexus is established, the business must register, collect, and remit Virginia sales tax.
Is SaaS taxable in Virginia?
No. SaaS products are generally exempt from sales tax in Virginia. SaaS is exempt as it is considered a service.
Are groceries taxed in Virginia?
Groceries are generally exempt from sales tax in Virginia. State tax is 0%; 1% local tax typically applies.
Are digital goods taxable in Virginia?
Digital goods are generally exempt from sales tax in Virginia. However, tax law in this area evolves quickly — verify current rules with the Virginia Department of Revenue.
Are clothing items exempt from sales tax in Virginia?
Clothing is subject to sales tax in Virginia at the standard state rate.
How often do I need to file sales tax in Virginia?
Virginia requires sales tax filing on a Monthly or Quarterly. Online filing is available through the official Department of Revenue portal.
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Official Source
Virginia Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.