Virginia sales tax on invoices (2026 guide)

Virginia's general sales tax rate is 5.3%: 4.3% state tax plus a 1% local tax that applies everywhere in the state. That's why you'll see 5.3% quoted as Virginia's "statewide" rate.

Some regions pay more. Northern Virginia, Hampton Roads and Central Virginia add a 0.7% regional tax (6% total), eight localities charge 6.3%, and the Historic Triangle (James City County, Williamsburg and York County) is 7%. The good news for freelancers is that Virginia generally doesn't tax services. Here's how it works.

Virginia sales tax rates

The regions, as Virginia Tax lists them:

• Northern Virginia: Alexandria, Arlington, Fairfax City, Fairfax County, Falls Church, Loudoun, Manassas, Manassas Park and Prince William.
• Hampton Roads: Chesapeake, Franklin City, Hampton, Isle of Wight, Newport News, Norfolk, Poquoson, Portsmouth, Southampton, Suffolk and Virginia Beach.
• Central Virginia: Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent, Powhatan and Richmond City.

The Historic Triangle localities are inside Hampton Roads, so they pay the 0.7% regional tax plus an extra 1%, for 7%. Food for home consumption and personal hygiene items are taxed at a reduced 1% statewide.

Watch for changes: Virginia Tax's 2026 legislative summary says the 2026 Appropriation Act lets any county or city adopt an additional 1% sales tax if voters approve it in a referendum.

Once you know the combined rate, our sales tax calculator works out the tax and the total for you.

Which services are taxable in Virginia?

Virginia's sales tax regulation starts from a simple rule: charges for services are generally exempt, but services provided in connection with a sale of tangible personal property are taxable.

When a job mixes services and goods, Virginia looks at the "true object" of the transaction:

• If the customer is really buying a service and any physical items are incidental, it can be an exempt service. The regulation's example is a training program that comes with workbooks.
• If the customer is really buying the finished product, the whole charge (including your labor) is taxable. The regulation's example is a commissioned portrait.

Some separately stated charges stay exempt even when you also sell goods, including:

• labor or service charges for repair, installation, application or remodeling of tangible personal property,
• separately stated transportation charges, and
• separately stated alteration charges for clothing.

For most consultants, designers, developers, writers and other professional freelancers, that means no Virginia sales tax on the service itself.

Registering to collect Virginia sales tax

If you sell taxable goods in Virginia, register with Virginia Tax before you start collecting. Once registered, Virginia Tax says you must file a return for every period even if you had no sales, and returns must be filed electronically.

Out-of-state sellers: Virginia Tax says remote sellers that make more than $100,000 in annual Virginia gross sales or 200 or more transactions with Virginia customers are treated as out-of-state dealers and must collect Virginia sales tax.

What a Virginia sales tax invoice should show

• your business name and address,
• the customer's name and address,
• a unique invoice number and invoice date,
• each item or service with its price,
• repair or installation labor on its own line, separate from parts or materials,
• sales tax as a separate line, with the rate for the locality, and
• the total due.

Separating labor from parts isn't just tidy: the exemption for repair and installation labor depends on it being separately stated. In Invoice Native, put parts and labor on separate lines and tick Tax only on the parts.

Resale and exemption certificates

A business buying goods to resell gives you Form ST-10, Resale Exemption Certificate. Virginia's regulations say the purchaser must give you a resale certificate to relieve you of the duty to collect the tax, so keep it on file.

Qualifying 501(c)(3), 501(c)(4) and 501(c)(19) nonprofits don't use ST-10. They apply to Virginia Tax and are issued their own certificate of exemption. Other exemptions have their own forms in Virginia Tax's forms library. See how to invoice a tax-exempt customer.

A worked example

Say you run a small repair shop in Arlington (Northern Virginia, 6%) and fix a customer's equipment:

• $300 in replacement parts (taxable), and
• $450 in repair labor, shown on its own line (exempt because it's separately stated).

The tax is $300 × 6% = $18.00, and the invoice total is $300 + $450 + $18 = $768.00. If you lumped parts and labor into one $750 charge, you'd risk tax applying to the whole amount.

Selling to customers in other states

If you ship goods or deliver taxable services to customers in another state, that state's rules may apply instead of Virginia's. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to register and collect their sales tax once sales into the state pass a threshold the state sets. If you sell across state lines regularly, check the thresholds and registration rules of each state you sell into, and use that state's rate on those invoices.

Common mistakes on Virginia invoices

• Charging 5.3% everywhere. Northern Virginia, Hampton Roads and Central Virginia are 6%, and the Historic Triangle is 7%.
• Taxing a pure service. Most services aren't taxable in Virginia.
• Lumping labor and parts together, which can make the labor taxable.
• Missing the "true object" test. If the customer is buying a finished product, your labor is part of the taxable price.
• Not filing zero returns. You file every period, even with no sales.

Quick checklist for Virginia invoices

• ✅ Registered with Virginia Tax before your first taxable sale
• ✅ Correct rate for the locality (5.3%, 6%, 6.3% or 7%)
• ✅ Repair and installation labor on separate lines
• ✅ Sales tax on its own line
• ✅ ST-10 resale certificates and nonprofit exemption certificates on file