Virginia sales tax debt: what Virginia Tax can do and your options
Last updated · Reviewed for accuracy against IRS.gov guidance
Virginia's general sales tax rate is 5.3% — 4.3% state plus 1% local — administered by Virginia Tax, with regional add-ons in areas such as Northern Virginia and Hampton Roads. Virginia Code § 58.1-1813 lets Virginia Tax assess corporate officers and others responsible for collecting sales tax personally. Virginia Tax offers payment plans.
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Who collects Virginia sales tax
The Virginia Department of Taxation (Virginia Tax) administers retail sales and use tax. The general rate is 5.3% (4.3% state plus 1% local). Additional regional taxes apply in Northern Virginia, Hampton Roads, Central Virginia and certain other localities, and food for home consumption is taxed at a reduced rate.
Payment plans
Virginia Tax offers payment plans for taxpayers who can't pay in full, which many businesses can set up online. Interest continues to accrue. Unresolved balances can lead to liens, bank levies and, for sales tax dealers, action against the certificate of registration.
Personal liability
Virginia Code § 58.1-1813 makes corporate or partnership officers and employees who are responsible for collecting and paying sales tax and willfully fail to do so personally liable for the unpaid tax — the state counterpart to the federal Trust Fund Recovery Penalty.
Disputes and next steps
Every Virginia Tax assessment notice states how and by when to dispute it. We haven't summarized Virginia's appeal stages here because we couldn't confirm them on an official page — use the deadline printed on your notice, which is usually short.
Before calling, file any missing returns, keep the current period paid, and run the free business tax relief assessment to see which routes may be worth raising.
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Start the calculatorFrequently asked questions
What is Virginia's sales tax on groceries?
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Since January 1, 2023, food for home consumption and certain essential personal hygiene products are taxed at 1% (local only), not the 5.3% general rate.
How do I appeal a Virginia sales tax assessment?
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File an administrative appeal with the Tax Commissioner under Virginia Code § 58.1-1821, generally within 90 days of the assessment, or take the matter to circuit court.
What is Virginia's sales tax rate?
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5.3% generally (4.3% state plus 1% local), higher in regions with additional taxes, and reduced for food for home consumption.
Can Virginia Tax hold me personally liable?
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Yes. Virginia Code § 58.1-1813 allows personal assessment of responsible officers and employees who willfully fail to collect or pay sales tax.
Does Virginia Tax offer payment plans?
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Yes. Many businesses can request a payment plan online; interest continues to accrue.
Does closing the business end Virginia sales tax debt?
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No. Closing stops new liability, but assessed tax, penalties and interest remain, and states often pursue the people responsible for collected-but-unremitted tax.
Where do I start if I'm behind on Virginia sales tax?
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File every missing return so Virginia Tax can replace any estimated bill with real figures, pay the current period, then contact Virginia Tax about the older balance.
Related topics
Sources
IRS figures on this page (rates, fees, thresholds) verified as of 2026-11-04. See our editorial policy.
TaxSettlementCalculator.com is not a tax firm, law firm, CPA, or government agency and is not affiliated with the IRS or any state tax agency. Estimates are for educational purposes only and are not tax, legal, or financial advice. Results vary based on individual circumstances, and no outcome is guaranteed. We connect users with independent tax relief professionals.