$200 Tax Rebates, Tax Holiday Coming To Virginia: What To Know

VIRGINIA — Virginia residents can expect $200-per-person tax rebates and an October sales tax holiday now that the state's budget has been finalized.

The rebates of $200 for individuals and $400 for joint filers are part of the state budget made after the Republican-controlled House and Democrat-controlled Senate came to an agreement. The rebate will be provided to Virginia taxpayers who had a tax liability to the state in 2022.

There may be deductions to that tax rebate for taxpayers who have credits such as the earned income tax rebate, deductions or subtractions. Rebates may also be reduced if taxpayers owe debts to certain government agencies or institutions.

There is no estimated timeline yet for when tax rebates will arrive. According to the adopted budget documents, taxpayers who filed their 2022 tax returns before July 1, 2023 should get a refund by Nov. 30, 2023. Residents must file this tax return by Nov. 1, 2023 to receive the tax rebate.

The tax rebates will either arrive as a direct deposit or paper check. Taxpayers who received a direct deposit from their tax return this year should get the tax rebate by direct deposit in the same bank account. If the bank account is not active, a paper check will be mailed.

For residents who moved in the last year and have a forwarding address with the U.S. Postal Service, checks will be forwarded to the new address. Residents may update their address with the Virginia Department of Taxation.

Virginians can also get tax savings through an upcoming sales tax holiday. For years past, the sales tax holiday was held in August to provide sales tax-free back-to-school savings. But that didn't happen in August 2023 because the sales tax holiday wasn't renewed in the 2022 Appropriation Act and the 2023 budget was not yet approved.

Now that the budget is approved, a sales tax holiday is scheduled for Oct. 20 to 22. During that time, state sales tax will not be charged in qualifying school supplies, clothing, hurricane and emergency preparedness supplies, and certain Energy Star and WaterSense products.

The sales tax holiday applies to in-person and online shopping. Sales tax in Virginia typically ranges between 5.3 percent and 7 percent, which includes the state's 4.3 percent state sales tax, the 1 percent local option tax, and other applicable regional taxes. In Northern Virginia localities, the combined sales tax is 6 percent.

Eligible items include school supplies that are $20 or less each, clothing and footwear that are $100 and less each, portable generators that are $1,000 or less each, gas-powered chainsaws that are $350 or less each, chainsaw accessories that are $60 or less each, other qualifying hurricane preparedness products that are $60 or less each and Energy Star or WaterSense products that are $2,500 or less each and for non-commercial use.

See a full list of qualifying items for the sales tax holiday.