If you purchased items to be used or consumed in Virginia but did not pay sales tax on those items, you must pay Use Tax to Virginia. Examples of purchases where sales tax may not be collected are those made via the internet, mail order catalog or out-of-state.
What is the Use Tax rate?
The general tax rate is 5.3% in Virginia. This consists of 4.3% state tax and 1% local tax.
- Northern Virginia and Hampton Roads regions - add .7% to the state tax rate making the use tax rate 6% (5% state and 1% local)
- Central Virginia Region - Effective October 1, 2020, there is an additional 0.7% tax added in the localities that make up that region increasing the tax rate to 6% (5% state tax and 1% local).
- Historic Triangle Region- Add an additional 1% state tax to the localities that make up Historic Triangle. These localities are within the Hampton Roads region making the rate 7% (6% state and 1% local).
- Additional Local Option Sales Tax in Halifax County - Effective July 1, 2020, there is an additional 1% local option sales tax making the combined tax 6.3% (4.3% state tax, 1% local tax, and 1% local option sale tax.)
- Eligible food items are subject to a reduced rate of 2.5% (1.5% state and 1% local).
Where do I enter this in my account?
To enter an amount of Use Tax due on your Virginia return within your account, follow the steps below:
- State Section
- Use Tax
For more information, see: