Virginia Sales Tax Guide & Nexus Calculator (2026)

Virginia’s listed state rate of 4.3% is only part of the picture — a mandatory 1% local add-on applies statewide, making the effective minimum rate 5.3% for all Virginia orders. SaaS and most digital goods are not taxable. Virginia is an SST member state.

Quick Reference

Criterion	Detail
State Rate	4.3% (+ mandatory 1% local = 5.3% minimum effective rate)
Economic Nexus Threshold	$100,000 gross sales (rolling 12 months)
Transaction Threshold	None
Digital Goods / SaaS	Not taxable
Typical Filing Frequency	Monthly
SST Member	Yes
Registration Portal	business.tax.virginia.gov

Economic Nexus

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Gross Revenue (USD)

$

Total Transactions (not required)

Enter your trailing 12-month revenue to calculate nexus status.

For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026

Virginia’s economic nexus threshold is $100,000 in gross sales into Virginia in the current or prior 12-month period. Once exceeded, registration and collection are required.

Marketplace-facilitated sales count toward the threshold. Virginia eliminated its 200-transaction alternative threshold before 2025.

Tax Rate and Product Taxability

Virginia’s rate structure:

• State: 4.3%
• Mandatory local add-on (statewide): 1%
• Effective minimum statewide rate: 5.3%
• Regional transportation taxes (Northern Virginia, Hampton Roads): additional 0.7%
• Combined in Northern Virginia / DC suburbs: 6%
• Combined in Hampton Roads (Norfolk/Virginia Beach): 6%
• All other Virginia: 5.3%

The 1% “local” add-on is mandatory statewide — it is not a true local tax that varies by location; it applies everywhere in Virginia. Additional regional transportation taxes apply in Northern Virginia and Hampton Roads only.

Product Categories

Taxable: Tangible personal property, most retail goods.

Exempt: Prescription drugs, most groceries (food for home consumption is taxed at a reduced 2.5% rate, not exempt), qualifying agricultural inputs, certain manufacturing equipment.

Grocery reduced rate: Virginia applies a 2.5% rate to most food and food ingredients for home consumption (vs. 5.3% standard). This is a reduced rate, not an exemption.

Digital Goods and SaaS

Virginia does not tax SaaS or most digital goods under current Department of Taxation guidance. Virginia’s sales tax is based on tangible personal property, and the Tax Commissioner has held that remotely accessed software and digital content do not qualify.

Virginia’s digital goods position:

• SaaS — not taxable; Virginia has not extended sales tax to cover remotely accessed software
• Downloaded software — historically, prewritten software on physical media was taxable in Virginia; treatment of electronically downloaded software is less definitive; current guidance leans toward non-taxable for SaaS/cloud delivery
• Digital content — generally not taxable
• Streaming — generally not taxable

For SaaS and digital-only businesses, Virginia is generally a non-taxable state — a significant benefit in a large market covering the DC metro corridor.

Registration

Virginia is an SST member state. Register through the SSTRS at streamlinedsalestax.org for multi-state coverage including Virginia.

For Virginia-only registration:

1. Go to the Virginia Tax Business iFile portal: business.tax.virginia.gov
2. Register for a Sales Tax Account (Retail Sales and Use Tax)
3. Provide EIN and business details
4. You will receive a Virginia Tax Account number

Registration is free.

Foreign Sellers

Virginia accepts foreign business registrations. A US EIN is required.

Filing Frequency and Deadlines

Annual Tax Liability	Filing Frequency
Less than $100/month	Annual
$100–$600/month	Quarterly
More than $600/month	Monthly

Monthly due dates: Returns are due by the 20th of the following month.

Returns are filed through the Virginia Tax portal.

Compliance Notes

Effective rate is 5.3% minimum: Virginia’s 4.3% state rate is only part of the calculation. The mandatory 1% statewide add-on means the floor for all Virginia orders is 5.3%. Northern Virginia and Hampton Roads orders run at 6%.

SaaS sellers: Virginia’s non-taxable position for SaaS means digital-only sellers likely have no collection obligation. Monitor Tax Commissioner guidance for potential changes.

Grocery 2.5% rate: If your catalog includes food items, Virginia’s 2.5% food rate (not a full exemption) requires product-level classification.

SST member: Use the SSTRS for multi-state registration covering Virginia.

Amazon FBA: Amazon operates major fulfillment centers in Virginia, particularly in Northern Virginia (near the Dulles corridor). FBA inventory creates physical nexus immediately.

Related Guides

• US Sales Tax Overview
• State Sales Tax Index — All 50 States
• Amazon FBA and Physical Nexus
• Stripe Tax for Digital Goods and SaaS
• Foreign Sellers Guide to US Sales Tax
• US Sales Tax Compliance Checklist