Virginia Institutes New Regional Sales and Use Tax in Central Virginia

August 14, 2020

 

Effective Oct. 1, 2020, a new .7% regional retail sales and use tax will be imposed in Central Virginia to include city of Richmond, as well as Charles City, Chesterfield, Goochland, Hanover (including the town of Ashland), Henrico, New Kent, and Powhatan. This will bring the total sales tax to 6% - inclusive of the 4.3% sales tax, the new .7% regional state tax, and the 1% local option tax. This additional sales tax will be allocated to the Central Virginia Transportation Authority, and puts Central Virginia in line with Northern Virginia and Hampton Roads with regard to Sales Tax rate. This does not apply to food purchased for home consumption and qualifying essential personal hygiene products which will remain at the current 2.5% rate statewide. 

 

  • View the full tax bulletin HERE.