Yes, groceries in Virginia are taxed, but at a reduced rate of 1% for most staple foods and essential hygiene products for home consumption, with local jurisdictions able to add their own 1% tax, making it potentially up to 2%; items like hot prepared foods, alcohol, and tobacco are taxed at the full rate.
Virginia offers sales tax exemptions during its annual Sales Tax Holiday (usually early August) for school supplies (under $20/item), clothing & footwear (under $100/item), hurricane preparedness items (like generators, safety kits), and certain ENERGY STAR/WaterSense appliances (under $2,500/item), with specific price caps and product lists defining eligibility, though computers and accessories are generally excluded. Beyond the holiday, other ongoing exemptions exist for items like some nonprescription medicines and bullion, as detailed on the Virginia Tax website.
Many states don't tax basic groceries, with some (Alaska, Delaware, Montana, New Hampshire, Oregon) having no state sales tax at all, while others exempt food from their general sales tax, like Arizona, California, Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, West Virginia, Wisconsin, and Wyoming, according to Stripe,, though local taxes or taxes on prepared/soda/candy often apply. The key is the distinction between groceries for home consumption (often exempt) and prepared foods or snacks (usually taxed).
Most groceries for home consumption are taxed at a reduced rate of 1% throughout Virginia. However, prepared foods, alcohol, and tobacco are taxable at regular rates.
The base state sales tax rate in Virginia is 4.3%.
California. Grocery items: Exempt.
Yes, Virginia taxes food, but differently depending on the type: groceries (food for home consumption) have a reduced rate (currently 1% state + local), while prepared foods and restaurant meals are taxed at the higher combined state and local sales tax rate (around 5.3% to 7%+). Hot, prepared foods for immediate consumption, alcohol, and tobacco are fully taxed.
You're partially right: Virginia's base sales tax is 5.3%, but some areas have additional local taxes, pushing the combined rate to 7% in the Historic Triangle (Williamsburg, James City County, York County) and 6% in Northern Virginia and Hampton Roads, with other local rates like 6.3% in places like Halifax County, making 7% the highest possible rate in the state, not the universal rate.
Virginia is required to collect a 4.15% Sales and Use Tax (SUT) at the time of titling whenever a vehicle is sold, and/or the ownership of the vehicle changes.
States with a standard sales tax rate on groceries
However, most Virginia cities, counties, and towns offer some form of personal property tax relief to homeowners age 65 and older, and to homeowners with disabilities. This relief may be in the form of a tax exemption, tax deferral, or both, and we provide an overview of these types of benefits below.
Virginia is moderately tax-friendly, especially for retirees, due to exempting Social Security, offering significant deductions for other retirement income, and having below-average property taxes, but it does have a graduated income tax and taxes other retirement income like pensions and IRAs, though with deductions available for seniors. It ranks in the middle for overall tax competitiveness but is attractive for those prioritizing low property tax and Social Security benefits.
Joint filers over 65 will be able to deduct up to $46,700 from their 2025 return. The standard deduction has been super-sized for seniors. Thanks to provisions in the One Big Beautiful Bill Act, taxpayers 65 and older can claim an additional $6,000 without itemizing their deductions.
On a $100,000 salary in Virginia, you'd pay roughly $22,000 - $28,000 in total taxes (federal, state, FICA), leaving about $72,000 - $78,000 in take-home pay, with specific amounts depending on filing status (single/married), deductions, and exact tax year calculations for federal income tax. Expect around $5,000-$5,500 for Virginia state tax, plus federal income tax and FICA (Social Security/Medicare).
Sales Tax Rate for Food and Personal Hygiene Products
Sales of food for home consumption and certain essential personal hygiene products are taxed at the reduced rate of 1% throughout Virginia.
Many states don't tax basic groceries, with some (Alaska, Delaware, Montana, New Hampshire, Oregon) having no state sales tax at all, while others exempt food from their general sales tax, like Arizona, California, Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, West Virginia, Wisconsin, and Wyoming, according to Stripe,, though local taxes or taxes on prepared/soda/candy often apply. The key is the distinction between groceries for home consumption (often exempt) and prepared foods or snacks (usually taxed).
No, Virginia is generally not considered a high-tax state overall, ranking around average nationally, but its tax system has mixed features: relatively low sales and property taxes, but a moderately high top income tax rate that kicks in early, making it feel higher for many residents, especially compared to neighbors like Maryland. Its ranking on the Tax Foundation's 2026 State Tax Competitiveness Index is 30th, indicating a middle-of-the-road tax environment.
Virginia offers sales tax exemptions during its annual Sales Tax Holiday (usually early August) for school supplies (under $20/item), clothing & footwear (under $100/item), hurricane preparedness items (like generators, safety kits), and certain ENERGY STAR/WaterSense appliances (under $2,500/item), with specific price caps and product lists defining eligibility, though computers and accessories are generally excluded. Beyond the holiday, other ongoing exemptions exist for items like some nonprescription medicines and bullion, as detailed on the Virginia Tax website.
You can shop confidently at Costco because we operate responsibly. That means we follow state and local laws, including those that require us to collect sales tax. The law that applies to the location where your delivery is received will determine if you need to pay tax on your purchase.
Generally, the IRS does not permit individuals to write off groceries and food items since the food and beverages substitute for what is normally consumed to satisfy nutritional needs. However, under special circumstances, you can claim food and groceries as a part of medical expenses under Schedule A of Form 1040.
Government Purchases
Things sold to federal or state governments, or their political subdivisions, are not subject to sales tax. The exemption doesn't apply to property purchased by the Commonwealth of Virginia, then transferred to a private business.