Reduced Retail Sales and Use Tax Rate on Food Purchased for Home Consumption and Essential Personal Hygiene Products

Effective January 1, 2023, groceries (food purchased for home consumption and essential personal hygiene products) will be taxed at a reduced 1% rate.

Background

Under prior law, groceries were subject to a reduced 1.5% state sales tax rate and 1% local option sales tax rate for a total rate of 2.5%. With this change, they’ll remain subject to the 1% local option retail sales and use tax, and will continue to be exempt from all regional and additional local tax rates.

View the Tax Bulletin

If you have additional questions, go to www.tax.virginia.gov, or contact 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.