Sales tax · Virginia

Virginia Sales Tax for Contractors (2026): Who Pays on a Home Remodel

Whether a Virginia contractor charges sales tax on a home remodel, who pays on materials, and three jobs worked at 4.3%.

Short answer: A contractor who supplies and installs materials is their consumer; charge none. The 2026 rate is 4.3% state plus 1% local; some regions add up to 1.7% more.

Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.

The rule in Virginia

Rule

Materials only

A contractor who supplies and installs materials is their consumer; charge none.

2026 rate

4.3%

4.3% state plus 1% local; some regions add up to 1.7% more

Contract type

Itemizing or time and materials

Not confirmed.

Customer form

None

Source: Va. Code 58.1-610; Tax Bulletin 24-3 (Ruling, Nov 2024)

“is deemed to be tangible personal property used or consumed by the contractor”

Three jobs, worked

Sales tax by who pays it, state rate only
JobCustomerYou pay
Bathroom
$12,000 job, $5,000 materials
$0$215
Kitchen
$40,000 job, $15,000 materials
$0$645
Addition
$90,000 job, $35,000 materials
$0$1,505

On the kitchen: The customer pays no sales tax. You pay $645 on $15,000 of materials at 4.3%, and build it into the price.

Virginia sales tax questions

Do contractors charge sales tax in Virginia?

Not on a home remodel. The contractor pays tax on materials when buying them and charges the homeowner none.

Is labor taxable in Virginia?

Not for remodeling a home.

What rate do contractors pay on materials in Virginia?

4.3% state plus 1% local. Some regions add up to 1.7% more. You pay it when you buy, like any buyer.

Compare other states

How we checked

We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .

This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.

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