Update, Nov. 6: Avula Lays Out Richmond's Next Steps
Mayor Danny Avula walked through how Richmond will put the new tax in place. More than 60% of city voters said yes, and the city expects the tax to bring in nearly $47 million a year. Over time, that's enough to back as much as $850 million in school construction and renovation.
The need is real. At least 10 Richmond school buildings are more than 100 years old, and Obama and Bellevue elementary schools both closed for mold cleanup at the start of this school year.
Here's where the promised tax cuts stand:
- Meals tax: Avula will introduce legislation with City Council leaders that raises the sales tax 1% and cuts the meals tax from 7.5% to 6.5% in the same move.
- Start date: The new rate can't begin until the first of a month at least 120 days after Council passes the ordinance. Avula says a firm timeline is coming soon.
- Real estate tax: He plans to send Council a March budget built on a $1.19 rate, down from $1.20.
What it means for you: nothing changes at the register yet. The offsets I used in my numbers below are moving forward, but Council still has to vote on them. I'll update this post when it sets the date.
Why I'm Writing This
The texts started before the polls even closed: "Does this mean we should look in Henrico instead?" If you're weighing Midlothian against Short Pump, or the Fan against Mechanicsville, it's a fair question.
So I ran the numbers for two typical families, one earning $150,000 and one earning $250,000, in all five localities. Short version: the sales tax is real, but it's not the number that should decide where you live.
What Passed, and When It Starts
Virginia now lets localities add up to 1% to the sales tax for school construction and renovation, but only if voters approve it. Forty-seven localities put it on the ballot, and voters said no in 32. Richmond and Chesterfield said yes.
- Richmond: Passed easily, about two-thirds yes in early returns. The money goes to Richmond Public Schools buildings. The city estimates about $47.5 million a year starting in fiscal 2028, and up to $850 million for school projects by 2034.
- Chesterfield: Passed narrowly, about 50.47% yes in unofficial results, with provisional ballots still being counted. A recount could still be requested, so this one isn't final yet. The county projects $65–70 million a year.
- Henrico, Hanover and Goochland: No referendum this year, so they stay at 6%. Next door, Powhatan voted it down with about 32% support.
When it starts: Not right away. Each locality still has to pass a levying ordinance, and the tax starts on the first of a month at least 120 days after that. Both Chesterfield and Richmond point to July 1, 2027 at the earliest. It sunsets by 2046.
What Gets Taxed and What Doesn't
| Purchase | Henrico, Hanover, Goochland | Richmond and Chesterfield (from mid-2027) |
|---|---|---|
| Most retail purchases (clothes, furniture, electronics, home goods) | 6% | 7% |
| Restaurant meals, alcohol, hot prepared food | 6% sales tax, plus any local meals tax | 7% sales tax, plus any local meals tax |
| Groceries and essential hygiene products | 1% | 1% (no change) |
| Prescription and most over-the-counter medicine | Exempt | Exempt (no change) |
Per Richmond Public Schools and Chesterfield County.
Two big-ticket items people ask about: cars and gas. Vehicle purchases fall under Virginia's separate motor vehicle sales tax, and gas is taxed through the fuel tax, so neither is part of this local 1%.
What It Costs a $150K and $250K Family
The math is easy: every $1,000 you spend on taxable stuff costs $10 more. The hard part is knowing how much of your spending is taxable. Housing, utilities, insurance, childcare, groceries and car payments aren't.
Chesterfield's own estimate is about $162 a year for the average household. Higher-income families spend more on the things that do get taxed, so here's what I used:
| Household income | Taxable goods per year | Restaurants and takeout | Extra sales tax, before offsets |
|---|---|---|---|
| $150,000 | about $16,000 | about $6,000 | about $220 a year ($18 a month) |
| $250,000 | about $24,000 | about $9,000 | about $330 a year ($28 a month) |
My estimate, not an official figure. Spending levels are rough assumptions for a family of four. If you renovate, furnish a new house or buy a big TV that year, add $10 for every $1,000.
In Henrico, Hanover and Goochland, the same families pay $0 more, as long as they shop there.
The Promised Offsets
Both localities paired the tax with cuts to sell it to voters. None of them are locked in yet. They have to go through each budget.
- Richmond: Mayor Danny Avula promised to cut the meals tax from 7.5% to 6.5%, so your restaurant bill stays the same, and the real estate rate from $1.20 to $1.19, the first cut since 2008.
- Chesterfield: The board signaled a 2-cent real estate cut and a 10-cent car tax cut. The county says that works out to about $94 back for a typical household with a home and a car, for a net cost of about $68 a year.
Here's what that does to my two families. I assumed a $450,000 home and $45,000 in cars for the $150K family, and a $750,000 home and $70,000 in cars for the $250K family.
| Locality | $150K family, net per year | $250K family, net per year | What's offsetting it |
|---|---|---|---|
| Richmond | about +$115 | about +$165 | Meals tax cut cancels the restaurant increase; 1-cent real estate cut |
| Chesterfield | about +$85 | about +$110 | 2-cent real estate cut, up to 10 cents off car tax |
| Henrico | $0 | $0 | No change |
| Hanover | $0 | $0 | No change |
| Goochland | $0 | $0 | No change |
If the offsets don't happen, use the "before offsets" numbers above. Car tax savings are approximate because state car tax relief changes the math on each vehicle.
Here's the twist: if the cuts happen, homeowners with bigger houses come out better than renters. A Chesterfield renter gets the sales tax without the real estate cut.
The Full Picture vs. Henrico, Hanover and Goochland
The sales tax only makes sense next to the bill that actually moves the needle, your real estate tax. Rates come from my 2026 tax rate comparison, with the promised Richmond and Chesterfield cuts applied.
$150,000 family, $450,000 home:
| Locality | Real estate tax | Sales tax change | Total vs. Henrico |
|---|---|---|---|
| Goochland, outside the TCSD ($0.53) | $2,385 | $0 | $1,350 less |
| Hanover ($0.81) | $3,645 | $0 | $90 less |
| Henrico ($0.83) | $3,735 | $0 | — |
| Goochland, inside the TCSD ($0.85) | $3,825 | $0 | $90 more |
| Chesterfield ($0.87 if cut) | $3,915 | +$220 | $400 more |
| Richmond ($1.19 if cut) | $5,355 | +$160 | $1,780 more |
$250,000 family, $750,000 home:
| Locality | Real estate tax | Sales tax change | Total vs. Henrico |
|---|---|---|---|
| Goochland, outside the TCSD ($0.53) | $3,975 | $0 | $2,250 less |
| Hanover ($0.81) | $6,075 | $0 | $150 less |
| Henrico ($0.83) | $6,225 | $0 | — |
| Goochland, inside the TCSD ($0.85) | $6,375 | $0 | $150 more |
| Chesterfield ($0.87 if cut) | $6,525 | +$330 | $630 more |
| Richmond ($1.19 if cut) | $8,925 | +$240 | $2,940 more |
Before relief or exemptions, and before car tax. Richmond's sales tax change is lower because the meals tax cut cancels the restaurant portion. Goochland TCSD details are in my Goochland vs. Hanover vs. Henrico breakdown.
See the pattern? The sales tax adds a few hundred dollars. The real estate rate is where the thousands are. Chesterfield vs. Henrico was about $270 a year on a $450,000 house before any of this. Now it's closer to $400.
Where You Shop Matters More Than Where You Live
Sales tax follows the register, not your address:
- A Chesterfield family that shops at Short Pump Town Center or West Broad pays Henrico's 6%.
- A Henrico family that shops at Chesterfield Towne Center or Stony Point pays 7%.
- Online orders are generally taxed where they're delivered. If you live in Chesterfield or the City, expect 7% on most of your Amazon cart.
The one thing nobody can dodge: big purchases delivered to your house. That new sectional is taxed where it lands.
What This Means If You're Buying
- Don't let 1% pick your county. For most of my clients, it's $10 to $30 a month. Commute, schools and the house itself matter a lot more.
- Furnishing a new house? If you're closing in Richmond or Chesterfield, buying the big stuff before mid-2027 saves you 1%.
- Watch the spring budgets. Whether Richmond and Chesterfield actually deliver the property and car tax cuts is the bigger story for homeowners. I'll update this post when they vote.
- Military families: If you're PCSing to Fort Gregg-Adams and looking at Chester or Midlothian, this barely moves your budget. My Fort Lee guide has the bigger trade-offs.
FAQ
Did the sales tax increase pass in Richmond and Chesterfield?
Yes. Richmond approved the 1% school construction sales tax easily on Nov. 3, 2026. Chesterfield approved it narrowly, with about 50.5% voting yes in unofficial results, so a recount is still possible.
What will the sales tax be in Richmond and Chesterfield?
7% on most purchases, up from 6%. Groceries and essential personal hygiene products stay at Virginia's reduced 1% rate. Henrico, Hanover and Goochland stay at 6%.
When does the new sales tax start?
No earlier than July 1, 2027. Each locality still has to adopt a levying ordinance, and the tax must start at least 120 days after that. It ends by 2046.
How much will the sales tax increase cost my family?
For most families, roughly $100 to $350 a year before offsets. My estimate is about $220 a year for a family earning $150,000 and about $330 for a family earning $250,000, before any property, car or meals tax cuts.
Does the new sales tax apply to groceries?
No. Food for home consumption and essential personal hygiene products are exempt from the extra 1% and stay at 1% total. Restaurant meals, alcohol and hot prepared food are taxed at the full rate.
Is Henrico raising its sales tax?
No. Henrico, Hanover and Goochland didn't hold a referendum this year, so they stay at 6%. Shoppers there pay 7% only when they buy in Richmond or Chesterfield or have orders delivered there.
Should the sales tax change where I buy a home?
Usually not. The increase is a few hundred dollars a year at most, while real estate tax differences between these localities run $1,000 to $5,000 a year on the same house.
Bottom Line
Richmond and Chesterfield are heading to 7%, and it'll cost most families a couple hundred bucks a year, less if the promised cuts come through. That's not nothing, but it's small next to the real estate tax gaps between these five localities.
If you want me to run the full numbers on a specific house, including real estate tax, car tax and what you'd actually spend, call or text me at 804-409-8581, or send me a note through my contact form.
Better call Stahl.
Sources
- NBC12, Richmond mayor outlines tax changes after voters approve school sales tax, Nov. 6, 2026
- NBC12, Richmond school board reviews mold prevention plans after school closures, Oct. 6, 2026
- The Richmonder, Sales tax increase passes easily in Richmond, narrowly in Chesterfield, Nov. 4, 2026
- NBC12, Central Virginia voters make their choices on 1% sales tax referendum, Nov. 4, 2026
- NBC12, 1% sales tax for schools passes for some localities, Nov. 4, 2026
- Richmond Public Schools, 1% local sales tax referendum
- Richmond BizSense, Richmond to seek referendum on sales tax hike, lower meals and real estate tax rates in exchange, July 24, 2026
- Chesterfield County, 1 For Schools referendum
- Chesterfield County, Just the facts: 1 For Schools
- Cardinal News, 47 localities will vote on sales tax for school construction, Sept. 8, 2026
Checked November 4, 2026, the day after the election, and updated November 6 with Richmond's next steps. Results are unofficial, and Chesterfield's could change in a recount. Family cost figures are my estimates based on assumed spending, not official numbers. I'm a REALTOR, not a tax advisor. This is general information, not tax advice.