Virginia Increases Sales Tax Rate and Increases Complication


Effective July 1, 2013, the statewide sales and use tax rate increases from 5% to 5.3%, including the local option rate.  Also a new additional sales tax rate will be imposed in the Northern Virginia and Hampton Roads regions at the rate of 0.7%.  Accordingly, the total state and local sales tax rate will be 6% in localities that fall within these regions.  The regional sales tax will be administered in the same manner as the existing state tax and no dealer discount is allowed on the new tax.  The new regional tax is sourced to the location of the place of business collecting the tax, without regard to where the product is delivered or used.

Please contact the KatzAbosch State and Local Tax (SALT) Group if you have any questions regarding these new tax complications or other SALT issues at 410-828-CPAS or email

Prepared by Andy Bareham, Chair of the KatzAbosch SALT Group.


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