1/1/23

Beginning today, Virginia will reduce its grocery sales tax rate to 1 percent.

This will eliminate the 1-and-a-half-percent state retail sales tax on grocery products. The new tax rate will apply to all groceries and certain essential personal hygiene products.

The Center Square reports that starting in February, K-12 education funding that came from a portion of the sales and use tax on groceries will be replaced through other state funds. The commonwealth is reporting a budget surplus of over two-billion dollars.

The move is expected to cost the state over 415-million-dollars in future tax revenue.