Are groceries taxed in VA?
Sales of food for home consumption and certain essential personal hygiene products are taxed at the reduced rate of 1% throughout Virginia.
The sales tax rate on groceries (food for home consumption and certain essential personal hygiene items) will be reduced to 1% beginning January 1, 2023. For a list of what qualifies as food for home consumption and essential personal hygiene items, see the Grocery Tax page.
- Government & Commodities.
- Agricultural.
- Commercial & Industrial.
- Service.
- Media-related.
- Medical.
- Miscellaneous.
- Safety.
In recent years, Virginia eliminated its state grocery sales tax, and Kansas OK'd a phase-out of the tax that will be complete in 2025. Like Oklahoma's measure, Virginia did not eliminate the local sales tax on groceries. (Oklahoma did prohibit cities and counties from increasing it until July 1, 2025.)
Tax does not apply to sales of food products for human consumption. Accurate and complete records of all purchases and sales of tangible personal property must be kept to verify all exemptions claimed as sales of exempt food products.
| STATE | ARE GROCERIES TAXABLE? | REDUCED GROCERY RATE |
|---|---|---|
| California | No | – |
| Colorado | No | – |
| Connecticut | No | – |
| Delaware | not applicable | – |
Food purchased for home consumption is taxed at 2.5 percent statewide. This includes snacks, bottled water, coffee, tea and other items purchased at a grocery store for employees to enjoy at work. Catered meals, on the other hand, are taxed at the normal sales tax rate, and may also be subject to the local meals tax.
Food for home consumption is taxed at a lower rate, with a standard 2.5% sales tax applied statewide. The lower tax rate on "food for home consumption" does not apply to prepared hot foods sold for immediate consumption on and off the premises, so fast food restaurants must pay the full tax rate.
In the United States, almost all states tax "tangible individual property" but exempt non-luxury "necessities": groceries, prescriptions, prosthetics, agriculture supplies, and sometimes clothes—the exemptions vary between states. Most states charge sales tax for women's pads and tampons.
In general, all sales, leases, and rentals of tangible personal property in or for use in Virginia, as well as accommodations and certain taxable services, are subject to Virginia sales and use tax, unless an exemption or exception is established.
Is Virginia tax friendly?
Virginia has a graduated income tax, and its top income tax rate ranks slightly below average among states. Virgina has one of the lowest sales tax rates, but taxes most sources of retirement income. There are some tax breaks for people 65 and older and no tax on Social Security benefits.
7% in Historic Triangle region (City of Williamsburg, and Counties of James City and York) 6% in Northern Virginia, Central Virginia and Hampton Roads regions.
The 2023 Virginia General Assembly passed a law giving taxpayers with a tax liability a rebate of up to $200 for individual filers and up to $400 for joint filers. Eligible taxpayers must have filed their 2022 individual income tax return by November 1, 2023 to receive the rebate.
Mississippi currently has the highest-taxed groceries in the U.S. The state taxes essential food items at the regular 7% tax rate. Some Mississippi lawmakers proposed reducing the grocery tax, but their efforts haven't been successful so far. Efforts to reduce the state's income tax have been more successful.
The “80/80 rule” applies when more than 80 percent of your sales are food and more than 80 percent of the food you sell is taxable. If the 80/80 rule applies and you do not separately track sales of cold food products sold to-go, you are responsible for tax on 100 percent of your sales.
There are five states with no general statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon.
Most states exempt groceries from sales taxes but that's not true across the nation. From Alabama to Virginia, 13 states include food you buy at the store in the retail tax. The rate varies from state to state, and in some the rate paid on food differs from the general sales tax rate.
- As of 2024, five states impose a 0.000% sales tax including Alaska, Delaware, Montana, New Hampshire, and Oregon. ...
- Whether or not a state imposes a state sales tax, local municipalities and counties may impose excise or surtaxes.
Hawaii. Hawaii is ranked among the states with the lowest or no sales tax. The state has a statewide sales tax rate of 4% and a local tax rate of 0.5%, as of January 2024. According to the US Census Bureau, the population of the state is 1,435,138, as of 2023.
SUMMARY OF PLASTIC BAG TAX
Effective January 1, 2022, disposable plastic bags provided at point of sale to consumers at grocery stores, convenience stores and drugstores in Fairfax County are subject to a five-cent tax. To avoid the tax, consumers may use reusable shopping bags.
How much is sales tax in Virginia?
The Virginia (VA) state sales tax rate is currently 4.3%. Depending on local municipalities, the total tax rate can be as high as 7%. Tax is imposed on the retail sale, lease or rental of tangible personal property in Virginia, or the use or consumption of tangible personal property in Virginia.
Virginia Solar Incentives Available in 2024
Without a sales tax exemption, homeowners must pay the state's base 4.3% sales tax plus additional taxes that vary by municipality. However, taxpayers can deduct 20% of the amount of sales tax paid on solar equipment from their taxable personal income.
Soft Drink Excise Tax
General Liability: An excise tax is levied on every wholesaler or distributor of carbonated soft drinks in Virginia.
Distilled spirits, Virginia wines and ready-to-drink co*cktails all have varying markup amounts. Distilled spirits retail prices include 20% state tax. Wine retail prices include 4% state tax and $. 40 per liter wine tax.
10% - Restaurant meals, liquor and soft drinks for consumption on the premises, and rental vehicles. 10.25% - Alcoholic beverages sold for off-the-premises consumption. 10.25% - Rental or leasing of rental vehicles and utility trailers.
