Virginia sales tax for contractors
What we found on official Virginia government pages about sales tax and tax setup for contractors. Each line shows its source and the date it was read. This is general information, not tax or legal advice. Rules change: verify with your CPA before you rely on any of it.
State sales tax rate
Base 5.3% statewide (4.3% state + 1% local); 6% in Central/Hampton Roads/N. Virginia, 6.3% some regions, 7% James City/Williamsburg/York; extra 1% grocery tax on food/hygiene; no 2026-27 change seen on page
Source: https://www.tax.virginia.gov/retail-sales-and-use-tax. Last verified 2026-11-02.
How contractors are taxed
Contractor is the consumer of materials (Va. Code 58.1-610): pays sales/use tax to vendors, does not collect from customer. Direct Payment Permit available to some contractors
Source: https://www.tax.virginia.gov/laws-rules-decisions/tax-bulletins/24-3. Last verified 2026-11-02.
What this page does not cover
Local taxes, special districts, and any detail we could not confirm on an official page are left out on purpose. Confirm current rates, forms and due dates with the state agency and your CPA.
How BossHours helps
BossHours keeps your quotes, invoices and job records in one place so your accountant has what they need at filing time. It does not give tax or legal advice.
See also the contractor guides and free tools.
Try BossHours free for 14 days
Field Hours $149, Office Hours $379 and After Hours $499 a month. Unlimited users on every plan, no setup fee, month to month, 14-day free trial.
Start your free trial