by Derrick Max

— Virginiaโs restaurant and lodging sector is still in a fragile post-COVID recovery, yet local governments across the Commonwealth are piling on new and higher taxes that make affordability worse for families and survival harder for small businesses.
A new statewide analysis of meals, lodging, and related sales taxes across all 133 Virginia localities by the Virginia Restaurant, Lodging & Travel Association (VRLTA) shows just how uneven and burdensome these taxes have become. The findings should serve as a warning to policymakers who claim to prioritize affordability while repeatedly targeting the same vulnerable industries.
According to the 2025 Meals & Lodging Tax Study, Virginiaโs hospitality tax landscape is now โhighly fragmented,โ with wide variation by region and governance structure (cities tax more than counties). There is also a clear trend to increase rates — putting concentrated pressure on restaurants and hotels. According to the study, meals taxes reach as high as 10 percent in some jurisdictions, effective lodging taxes climb to 15 percent, and nearly one-third of localities exceed the statewide 5.3 percent sales tax rate through these tax add-ons. Just as concerning, roughly 43 percent of Virginia localities have raised at least one of these taxes since 2016.
That is not affordability, it is instability.
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