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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department Of Taxation
Chapter 210. Retail Sales and Use Tax
2/25/2021

23VAC10-210-220. Brackets for collection of the tax.

A. The rate of the sales and use tax is 5.3%, which is comprised of a 4.3% state tax and a 1.0% local tax applicable throughout Virginia. (See 23VAC10-210-6040 through 23VAC10-210-6043 for special tax rate and provisions applicable to sales through vending machines.) An additional state sales and use tax is imposed in the Northern Virginia and Hampton Roads Regions at the rate of 0.7%. The total rate of the state and local sales and use tax is 6.0% in localities that fall within these regions (4.3% state, 0.7% regional, and 1.0% local). For definitions of the "Hampton Roads Region" and the "Northern Virginia Region" see 23VAC10-210-2070.

The bracket system is used to eliminate fractions of $.01 and must be used to compute the tax on transactions of $5.00 or less. On transactions over $5.00, the tax is computed at a straight 5.3% (6.0% in the Hampton Roads and Northern Virginia Regions), with one half cent or more treated as $.01. Any dealer who collects the tax in accordance with the bracket system set forth herein shall not be deemed to have over collected the tax. For over collection of the tax generally, see 23VAC10-210-340 D.

B. The bracket system does not relieve the dealer from the liability to pay an amount equal to 5.3% (6.0% in the Hampton Roads and Northern Virginia Regions) of his gross taxable sales. However, if the dealer can prove to the department that more than 85% of the gross taxable sales for the period were from individual sales of $.10 or less (and that he was unable to adjust his prices in such manner as to prevent the economic incidence of the sales tax from falling on him), the department will determine the proper tax liability of the dealer based on the portion of gross taxable sales that came from sales of $.11 or more. Any dealer who may claim this exception must file with each return a separate statement explaining his claim in detail for consideration by the department.

C. Below is the bracket system for the combined state and local tax of 5.3% on transactions of $5.00 or less:

Sales Price

Tax Due

0.01 to 0.09

0

0.10 to 0.28

0.01

0.29 to 0.47

0.02

0.48 to 0.66

0.03

0.67 to 0.84

0.04

0.85 to 1.03

0.05

1.04 to 1.22

0.06

1.23 to 1.41

0.07

1.42 to 1.60

0.08

1.61 to 1.79

0.09

1.80 to 1.98

0.10

1.99 to 2.16

0.11

2.17 to 2.35

0.12

2.36 to 2.54

0.13

2.55 to 2.73

0.14

2.74 to 2.92

0.15

2.93 to 3.11

0.16

3.12 to 3.30

0.17

3.31 to 3.49

0.18

3.50 to 3.67

0.19

3.68 to 3.86

0.20

3.87 to 4.05

0.21

4.06 to 4.24

0.22

4.25 to 4.43

0.23

4.44 to 4.62

0.24

4.63 to 4.81

0.25

4.82 to 4.99

0.26

5.00

0.27

For differential rate on fuels for domestic consumption, see 23VAC10-210-630.

D. This subsection contains the bracket system for the combined state, regional, and local tax of 6.0% in the Hampton Roads and Northern Virginia Regions on transactions of $5.00 or less:

Sales Price

Tax Due

0.00 to 0.08

0

0.09 to 0.24

0.01

0.25 to 0.41

0.02

0.42 to 0.58

0.03

0.59 to 0.74

0.04

0.75 to 0.91

0.05

0.92 to 1.08

0.06

1.09 to 1.24

0.07

1.25 to 1.41

0.08

1.42 to 1.58

0.09

1.59 to 1.74

0.10

1.75 to 1.91

0.11

1.92 to 2.08

0.12

2.09 to 2.24

0.13

2.25 to 2.41

0.14

2.42 to 2.58

0.15

2.59 to 2.74

0.16

2.75 to 2.91

0.17

2.92 to 3.08

0.18

3.09 to 3.24

0.19

3.25 to 3.41

0.20

3.42 to 3.58

0.21

3.59 to 3.74

0.22

3.75 to 3.91

0.23

3.92 to 4.08

0.24

4.09 to 4.24

0.25

4.25 to 4.41

0.26

4.42 to 4.58

0.27

4.59 to 4.74

0.28

4.75 to 4.91

0.29

4.92 to 5.00

0.30

Statutory Authority

§ 58.1-203 of the Code of Virginia

Historical Notes

Derived from VR630-10-17 §§ 1‑4; revised July 1969; January 1979; January 1985; January 1987; November 1987; amended, eff. May 15, 1988, retroactive to November 30, 1987; Volume 25, Issue 11, eff. March 4, 2009; Volume 32, Issue 22, eff. September 12, 2016.

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