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Sales and use tax rate set to increase in Central Virginia

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Posted at 1:53 PM, Sep 22, 2020
and last updated 2020-09-22 13:53:40-04

RICHMOND, Va. – The sales and use tax rate in Central Virginia is set to increase on Thursday, October 1.

The sales tax rate, currently at 5.3% in Central Virginia will increase .7% for a total of 6%. This includes the 4.3% state tax, .7% regional state tax and the 1% local option tax.

The increase does not apply to food purchases such as groceries, or essential personal hygiene products, as both are taxed at a reduced rate.

The increase, which was approved by the 2020 Virginia General Assembly, applies to sales made in the following localities:

  • City of Richmond
  • Charles City
  • Chesterfield
  • Goochland
  • Hanover (including the town of Ashland)
  • Henrico
  • New Kent
  • Powhatan

Here’s how the sales tax rate breaks down for other parts of Virginia:

  • For most locations, it’s 5.3%;
  • In Hampton Roads (outside the Historic Triangle region) and Northern Virginia, it’s 6%;
  • In Halifax County, the rate is 6.3%; and
  • In the Historic Triangle region, the rate is 7%.

For more information on the sales and use tax rate in Virginia, click here.