Virginia has a new state sales tax rate, effective July 1, 2013.

Virginia has a new state sales tax rate, effective July 1, 2013.

On July 1, 2013, the state sales tax rate in most areas of Virginia increased from 4% to 4.3%. However, Northern Virginia and the Hampton Roads region saw an additional 0.7% state tax increase, making their state tax rate 5% instead of 4.3%. With the statewide local tax rate of 1%, the total state and local tax rate in Northern Virginia and Hampton Roads is now 6%; it is now 5.3% elsewhere in the state. The new tax rates are explained in a bulletin issued by the Virginia Department of Taxation.

Vending machine sales tax

There is a separate vending machine sales tax in Virginia. The state vending machine sales tax rate in Northern Virginia and the Hampton Roads region is 6%; elsewhere in Virginia it is 5.3%. The additional local tax rate of 1% applies everywhere in the state, for total rates of 7% and 6.3% respectively.

Northern Virginia transient occupancy tax

The Northern Virginia Region has a new 2% transient occupancy tax, effective July 1, 2013. It is a state tax but it is administered locally.

Real estate recordation tax

House Bill 2313 imposes a regional congestion relief fee “on the recording of any deed or instrument conveying real property that is situated in a locality included in the Northern Virginia Region.” Effective July 1, 2013, it must be paid by the seller (grantor) “when the consideration or value of the interest in such property, whichever is greater, equals or exceeds $100.”

The Northern Virginia Region:

  • Alexandria,
  • Fairfax,
  • Falls Church,
  • Manassas,
  • Manassas Park,
  • Arlington County,
  • Fairfax County,
  • Loudoun County, and
  • Prince William County.

The Hampton Roads Region:

  • Chesapeake,
  • Franklin,
  • Hampton,
  • Newport News,
  • Norfolk,
  • Poquoson,
  • Portsmouth,
  • Suffolk,
  • Virginia Beach,
  • Williamsburg,
  • Isle of Wight County,
  • James City County,
  • Southampton County, and
  • York County.

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