NORFOLK, Va. — Virginia's sales tax holiday is happening this weekend, and many Hampton Roads residents are preparing to shop 'til they drop!
"It all adds up at the end," said Suffolk resident Nishant Pandey. “I have a lot of employees with children that go to school, and it’s a little tough for everyone right now with the holidays coming up."
The tax-free weekend normally falls on the first Friday in August ahead of the new school year, but state lawmakers ended the legislative session without extending the sales tax holiday for 2023. So, it expired in July. Just a few months later, the General Assembly agreed on a new state budget and included the reinstatement of the sales tax holiday. That's why the tax-free weekend is happening October 20-22.
“It would have been nice to have it for back-to-school shopping for my son who’s in middle school,” said Norfolk resident Jennifer Shore, “but we will probably get a few more things that we didn’t get in August.”
“I know a lot of people have been waiting for that,” said Norfolk resident Gwenevere Jones. “It definitely needs to come before or right at school start."
According to the Virginia Department of Taxation, you can save anywhere between 5.3% and 7% off the total cost of your purchase during the tax-free weekend. But while the tax-free weekend is a great way to save money, there are restrictions on the tax break.
Items that are exempted from sales taxes include hurricane preparedness items, school supplies, clothing, footwear, Energy Star and WaterSense items, but every item category has a specific cut-off on price, according to the Virginia Regulatory Town Hall.
Here's what you need to know before heading out to stores this weekend.
Price cut-off requirements for Virginia Sales Tax Holiday
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. So if you purchase a dress for $95 and the retailer adds a $10 shipping fee, the item would still qualify for a tax break because its base price is under $100.
Hurricane preparedness items also have specific cut-offs. Portable generators must be $1,000 or less, gas-powered chainsaws must be $350 or less, chainsaw accessories must be $60 or less and other specified hurricane preparedness items must be $60 or less to qualify.
For Energy Star and WaterSense items, they must be $2,500 or less per item and can only be purchased for non-commercial home or personal use. They also must have an Energy Star or WaterSense label.
What items are eligible for Virginia Tax-Free Weekend?
Here's a look at the main categories of items that are the eligible for tax-free savings.
School and office supplies up to $20 per item, like binders, art supplies, book bags, calculators, dictionaries, hand sanitizer, lunch boxes, paper, and rulers.
Clothing and footwear up to $100 per item, including athletic apparel, baby clothes, bathing suits, belts, coats, costumes, diapers, dresses, gloves, hats, pants, shirts, shoes, nightwear and socks.
However, if you're planning on shopping for clothes, it's important to know that accessories like cosmetics, hair clips, handbags, jewelry, sunglasses, and umbrellas are not eligible for the sales tax exemption. Protective equipment and sports or recreational equipment are also ineligible, so you can't purchase things such as breathing masks, helmets, ballet shoes, roller skates, waders, etc.
Energy Star or WaterSense products up to $2,500. That includes air conditioners, ceiling fans, dehumidifiers, washing machines, dishwashers, light bulbs, refrigerators and faucets.
Hurricane preparedness equipment up to $1,000 per item. These are items like portable generators, chain saws, ice packs, batteries, radios, portable light sources, waterproof sheeting, first aid kits, and more.
Is online shopping included in Virginia Sales Tax Holiday?
If online shopping is your go-to way to shop, items purchased online, by mail order or by telephone are eligible for the tax break. Items just have to be delivered to or paid for by the customer during the sales tax exemption period.
Online purchases can also be eligible for the tax break if the seller accepts an order during the exemption period for immediate shipment, even if delivery is made after the exemption period.
Items that have to be custom-made for future delivery are not exempt from sales tax. Neither are rental items.
Shipping costs do not add to the base price of the item. So if you purchase a dress for $95 and the retailer adds a $10 shipping fee, the item would still qualify for a tax break because its base price is under $100.
You can find more information on the Virginia Sales Tax Holiday by visiting the Virginia Department of Taxation's website.