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Sales tax deduction in Virginia

Varies

Is Sales Tax Deductible in Virginia?

Short answer: Only instead of income tax: itemizers in Virginia pick sales tax (5.3% state rate, about 5.77% with local taxes) or state income tax, whichever is bigger. Instead of the general 5.3%–7% rate, vehicles pay a 4.15% motor vehicle sales and use tax (minimum $75); groceries are taxed at 1% statewide.

Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).

Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.