After a long stalemate, lawmakers in Virginia reached a budget agreement that, among other things, revived the popular Virginia tax-free weekend for 2023.
Here’s what you need to know.
Virginia sales tax holiday 2023
While shoppers in more than 15 states took advantage of sales tax holidays for back-to-school shopping in the past few months, Virginians were initially out of luck. That’s because lawmakers in the Commonwealth failed to renew a legislative provision for the popular tax-free weekend held for many years in August.
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However, after passing a new 2023 Virginia budget, lawmakers reinstated the sales tax holiday for the Commonwealth. Virginia shoppers could save on numerous items beginning Friday, Oct. 20, and through Sunday, Oct. 22.
Virginia sales tax
Virginia's sales tax rate is normally 5.3%. Localities can add up to 70 cents, bringing the combined sales tax rate to 6% in some areas of the Commonwealth.
Note: Groceries and some feminine hygiene products can be taxed in Virginia at a lower local 1% sales tax rate.
What items are tax-free in Virginia?
During the Virginia tax-free weekend, you could buy qualifying school supplies, clothing, footwear, and more without paying Virginia sales tax.
Here are some of the eligible items. You can find a full list of items that will be tax-exempt and additional information on the Virginia Department of Taxation website.
- School supplies, clothing, and footwear
- Qualified school supplies - $20 or less per item
- Qualified clothing and footwear - $100 or less per item
The Virginia sales tax holiday doesn’t only apply to school supplies and clothing. From Oct. 20-22, you could also save on big-ticket items like Energy Star™ and WaterSense™ products for home or personal use ($2,500 or less), gas-powered chainsaws ($350 or less), and portable generators ($1,000 or less).
Hurricane and emergency preparedness products were also tax-exempt during the Virginia tax-free weekend. Generally, these needed to be $60 or less per item.
Virginia tax rebates and other tax relief
The return of Virginia’s tax-free weekend came along with other tax relief for eligible Virginians in the 2023 budget.
- Military retiree tax benefit. The Virginia budget removes the 55 or older requirement for subtracting military benefits from taxable income. That change is effective beginning with the 2023 tax year.
- Virginia standard deduction increase. The new VA budget temporarily increases the Virginia standard deduction for the 2024 and 2025 tax years. For joint filers, the standard deduction in the Commonwealth will go to $17,000 (from $16,000). For single filers, the standard deduction rises by $500, from $8,000 to $8,500.
(Whether the higher standard deductions remain in place will depend on Virginia meeting annual revenue targets.)
Virginia is also sending 2023 tax rebates to eligible residents this year. Generally, eligible Virginia single filers may receive up to $200, while joint filers may expect a rebate of up to $400.
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