When Is Tax Free Day In Virginia: The Virginia sales tax break is back this weekend. Before you go shopping, these things should be clear to you. This three-day holiday weekend usually happens on the first weekend of August, but because of delays in passing laws, it’s coming later than normal.
It wasn’t until September, when the sales tax break was added to the state budget bill, that it was officially extended until July 1, 2023.
Residents of Virginia can get tax breaks on some school supplies, clothes, shoes, hurricane gear, and ENERGY STAR and WaterSense goods from Friday, October 20, to Sunday, October 22.
According to Guadalupe Ramirez, owner of AlterNatives Boutique in Carytown, the tax holiday will be busy but fun.
“We have received more merchandise ready for the cold weather, so we’re going to get ready for that,” he stated. “For us, it’s a good way to clear a bit of the inventory we have for the summer, making it a win-win situation for us as merchants and a win for the customers.”
Price cut-off requirements for Virginia Sales Tax Holiday
To get the tax break, shoes and clothes purchased separately must cost $100 or less, and school materials must cost $20 or less. This requirement applies to each item, not the whole buy.
When you buy something online, the overall price does not include the cost of shipping. For instance, if you pay $95 for a dress and the store adds a $10 shipping fee, you can still get a tax return because the lowest price of the outfit was less than $100.
Lower and higher levels of storm readiness have been set. Portable generators, gas-powered chainsaws, chainsaw accessories, and other items used for storm prep must cost less than $60.
Each WaterSense and Energy Star product should cost no more than $2,000. Products with the Energy Star or WaterSense label bought for personal or non-business use are qualified for the tax break.
What items are eligible for Virginia Tax-Free Weekend?
Looking at the main types of things that can be saved on taxes:
Up to $20 worth of school and office items. This includes plastic folders, art tools, paper, rulers, lunchboxes, calculators, dictionaries, book bags, and hand sanitizer.
The most expensive piece of clothing and shoes is $100. These things include athletic wear, baby clothes, bathing suits, belts, jackets, costumes, diapers, dresses, gloves, hats, pants, shirts, shoes, nightwear, and socks.
Although some accessories are free from sales tax, these include sunglasses, jewelry, handbags, umbrellas, hair clips, and cosmetics. Additionally, protective gear and sports or recreational items like roller skates, breathing masks, helmets, ballet shoes, and waders are not allowed.
Buyers of Energy Star and WaterSense products can get them without paying taxes if they spend less than $2,500. Home appliances in this group include freezers, light bulbs, dishwashers, ceiling fans, dehumidifiers, washing machines, and faucets.
The hurricane protection equipment includes things like radios, batteries, portable light sources, waterproof sheeting, first aid kits, portable generators, chainsaws, ice packs, and more, up to a maximum of $1,000 per item.
What items are tax-free in Virginia?
Clothes, shoes, school materials, and other items don’t have to pay Virginia sales tax over the tax-free weekend.
Here’s a list of goods that fit. The Virginia Department of Taxation’s website has a full list and more details.
Dresses, shoes, and school supplies:
Each item of school materials that qualify must cost $20 or less.
Wearable clothes and shoes cost $100 or less each.
More than just clothes and school supplies are exempt from Virginia’s sales tax break. The shopping weekend of October 20th and 21st also offers discounts of up to $2,500 on Energy StarTM and WaterSenseTM products for house or personal use, $350 on gas-powered chainsaws, and $1,000 on portable generators.
This is Virginia’s tax-free weekend, so hurricane and emergency goods are also tax-free. Usually, these things cost $60 or less each.
Why did Virginia’s sales tax holiday go away and later return?
According to Virginians, the yearly sales tax holiday in August has been their favorite time to shop for back-to-school supplies since 2015. Compared to other summers, though, this one had a bill about sales tax vacations that ran out because lawmakers forgot to extend its expiration date.
The rule said that the code of Virginia’s retail sales and use tax exemption holidays would last until July 1, 2023. The information was in Section 3-5.25 of the 2022 Appropriations Act.
Luckily, the Virginia State Assembly’s suggested state budget includes keeping the popular tax-free weekend. Also, the tax break that wasn’t given in August was now scheduled for late October.
Reports say that the state-wide sales tax break for school materials, clothing, and shoes was officially brought back in September when Governor Glenn Youngkin signed the budget.
Correction: The first version of this story said that the sales tax holiday finished at noon on Sunday, October 22.
Virginia sales tax holiday on track to return Oct. 20-22
by Governor Glenn Youngkin, who has said many times that lowering the cost of living for Virginians is one of his administration’s top goals.
Officials working for Governor Youngkin told Macaulay Porter that they have always wanted to include the holiday in the final budget, even though the process has been long.
Changing the state code during the normal legislative session, which ended in March, would not have allowed lawmakers to extend the sales tax holiday.
Therefore, the sales tax holiday stops on July 1, which is one month before Virginia’s annual tax-free shopping weekend.
According to the revised budget passed on Wednesday, the state can extend the holiday dates until July 1, 2025. This year, Virginia’s tax-free weekend is in October, but it usually happens in August, right before school starts.
Some things, like school supplies, gear for getting ready for storms, Energy Star or WaterSense products, clothing, and shoes, are exempt from sales and use tax, according to the state code.
Does Virginia have tax-free weekend?
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.
You can save money by buying ENERGY STARTM and WaterSenseTM goods, as well as approved school supplies, clothing, hurricane and emergency supplies. The time when there are no taxes is from 12:01 a.m. on Friday, October 20, 2023, to 11:59 p.m. on Sunday, October 22, 2023. Utilize these deals whether you like to buy things in person, online, over the phone, or through the mail.
This list summarizes what counts.
Dresses, shoes, and school supplies:
Each item of school materials that qualify must cost $20 or less.
Wearable clothes and shoes cost $100 or less each.
Hurricane and emergency preparation items:
Generac engines that are portable don’t cost more than $1,000.
Gas-powered chainsaws cost at most 350 dollars each.
Each chainsaw accessory costs $60 or less.
The prices of other special hurricane preparedness items are $60 or less each.
Energy Star® and WaterSenseTM products:
For home use only, ENERGY STARTM or WaterSense-certified products cost no more than $2,500 each.
What day is Virginia sales tax due?
20th of the month
Filing and Paying
Returns are due on the 20th of the month following the close of the filing period. Quarterly filing periods end March 31, June 30, Sept. 30 and Dec. 31. You have to file a return for each period, even if you don’t owe any tax.
Sales taxes are fees that are charged by the government on the buying and selling of certain goods and services, either at the local or state level. Virginia started raising its basic state sales tax in 1966. It is now at 4.3 percent. Different areas may have their own sales taxes on top of the state tax. These can be local or special district taxes, with rates running from 2.7% to 0%. Currently, Virginia’s combined sales tax rates range from 4.3% to 7%, based on where the goods are sold.
Although you own a company and sell taxable goods or services, you work for the Commonwealth of Virginia. You need to receive taxes from buyers and send them to the right tax authority. Virginia’s sales and use taxes are handled by the Virginia Department of Taxation, also known as Virginia Tax.
When buyers pay sales taxes, the money goes to the Commonwealth of Virginia, not the entrepreneur. Carefully managing the taxes you receive is necessary to make sure you follow local and state laws. Doing this could save you in interest and fines.
Is Virginia state tax free?
Virginia has a graduated individual income tax, with rates ranging from 2.00 percent to 5.75 percent.
Residents and nonresidents must pay Virginia taxes on income from Virginia sources. Virginia has ten different state income tax rates, ranging from 2% to 5.75 %. The total sales tax rate is 5.3%, which is made up of 4.3% state taxes and 1% local taxes. Extra sales taxes apply in some places.
Many credits and deductions are available in Virginia to help people pay less in taxes. Some examples are basic deductions, itemized deductions, credits for taxes paid to other states, and dependent care credit deductions. The purpose of these steps is to help people minimize and manage their tax obligations.
Does Virginia tax free weekend work online?
Clothing items and shoes have to be $100 or less and school supply items $20 or less to qualify for the tax break. This restriction is per item, not per purchase. For online purchases, shipping costs do not add to the base price of the item.
To reduce your taxes, school supplies must cost $20 or less each, and clothing and shoes must cost $100 or less each. The restrictions only apply to specific items, not to whole purchases.
For online purchases, remember that shipping costs are not included in the item’s base price. A dress bought for $95 plus $10 for shipping, for example, can still get a tax return because its base price is less than $100.
Price ranges exist for storm preparation gear. Portable generators must cost $1,000 or less, gas-powered chainsaws must cost more than $350, chainsaw accessories must cost $60 or less, and other products for storm preparedness must cost $60 or less.
In order to be Energy Star and WaterSense certified, an item must cost at most $2,500 and be used for personal, not business, purposes only. These products must also have the Energy Star or WaterSense logo on them in order to be qualified.
Why was tax-free weekend Cancelled in Virginia?
After the General Assembly forgot to renew the state’s typical August sales tax holiday during a chaotic and drawn-out budget process, Virginians used to stocking up on tax-free school supplies and other products in one weekend were out of luck.
Every August, Virginia has a tax-free weekend that lets people save money on things like clothes and school supplies. According to this tradition, sales tax breaks, which happen all summer in at least fifteen states, are a common thing to do.
In contrast to last year, lawmakers have chosen not to extend the rule that governs Virginia’s sales tax break, which ended on July 1. Political differences in Virginia made it look like specific congressional action would not be needed for renewal.
The tax-free weekend exemption has ended, but the Commonwealth’s budget balance is still expected to be more than $3 billion. This is a big financial picture during tax reform: Virginia Governor Glenn Youngkin has talked about the balance in support of a $1 billion tax cut.
Virginia’s House and Senate lawmakers agreed on a new budget that includes features like bringing back the tax holiday.
In its current form, Governor Glenn Youngkin approved the newly proposed Virginia budget unchanged.
It has been moved to October 20-22, which is more than a month after most local public school sessions started.
Clothing, hurricane supplies, and school items can be bought without paying sales tax over the tax-free weekend.
Others, like air conditioners and washing machines, can get tax breaks for being Energy StarTM or WaterSenseTM certified.
