Tax Exemption Period in Virginia, 2025: Key Information (August 1-3)
The Commonwealth of Virginia is gearing up for its annual sales tax holiday, taking place from August 1 to August 3, 2025. This year, the event comes alongside a one-time tax rebate program, offering significant savings on various essential items.
The Virginia Department of Taxation is responsible for administering both the sales tax holiday and the rebate program. They provide details and answers to FAQs about these initiatives on their official website.
During the sales tax holiday, three main categories of items will be exempt from sales tax:
- School Supplies, Clothing, Footwear: Qualifying school supplies, clothing, and footwear will be tax-free, with price limits of $20 for school supplies and $100 for clothing and footwear per item. Notably, hair accessories and jewelry do not qualify as clothing, and computers or novels do not count as school supplies.
- Hurricane and Emergency Preparedness: Items such as portable generators, gas-powered chainsaws, chainsaw accessories, and other specified preparedness items will be tax-exempt. The price limits for these items are $1,000 for generators, $350 for chainsaws, and $60 for chainsaw accessories and other items per item.
- Energy Star™ and WaterSense™ Products: Energy Star or WaterSense products for noncommercial home or personal use, priced at $2,500 or less, will also be exempt from sales tax during the holiday.
These exemptions apply to in-store, online, mail, or phone purchases.
The Old Dominion State is following a trend set by more than 17 states this summer, offering sales tax holidays for back-to-school shopping and other essentials.
The Commonwealth of Virginia will issue one-time VA tax rebates of up to $200 for single filers and up to $400 for married couples filing jointly this year. To be eligible for the 2025 rebate, you must file your 2024 Virginia income tax return by November 3, 2025. The actual amount of the rebate will depend on how much you owe in state taxes.
The timing of the tax rebate distribution is influenced by the filing of the 2024 Virginia income tax return. The majority of payments are expected to be distributed by mid-October.
This year's sales tax holiday follows a typical format for VA shoppers, providing significant savings within the specified limits and item categories during the three-day period. It's important to note that the sales tax rate in Virginia is normally 5.3%, with localities adding up to 2%, making the combined sales tax rate 7% in some areas.
For those seeking a comprehensive understanding of the One Big Beautiful tax law, The Kiplinger Tax Letter is available for $69 for 26 biweekly issues.
- Understanding personal-finance implications, individuals in Virginia might consider taking advantage of the upcoming sales tax holiday from August 1 to August 3, 2025, as it offers savings on essential items such as school supplies, emergency preparedness items, and certain energy-efficient products, particularly due to the exemption from state sales tax.
- As part of this year's financial planning strategies, eligible taxpayers in the Commonwealth of Virginia may qualify for a one-time VA tax rebate program, offering up to $200 for single filers and $400 for married couples filing jointly, to be claimed upon filing the 2024 Virginia income tax return by November 3, 2025.
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