Dining Out? Fairfax County Restaurants Raise Prices
Dining out in Fairfax County is set to become more expensive due to a newly implemented meals tax. This tax, which increased at the start of the new year, will affect consumers’ bills at various dining establishments across the region.
Details of the New Meals Tax
The meals tax stands at 4% and is applicable to prepared meals and beverages sold at restaurants, cafes, bars, food trucks, and other venues that provide ready-to-eat food and drinks. Importantly, this tax is in addition to Virginia’s existing 6% sales tax.
Exemptions from the Meals Tax
It’s worth noting that the meals tax does not extend to grocery items, snack foods, beverages, or alcoholic drinks sold in factory-sealed containers intended for off-site consumption.
Purpose and Financial Implications
Supporters of the new tax argue that it is essential for balancing the county’s budget. This adjustment aligns Fairfax County with neighboring jurisdictions that already have similar meals taxes. County officials believe this approach is preferable to increasing real estate taxes.
The meals tax is projected to generate around $65 million for the fiscal year 2026. Approximately one-third of this revenue is expected to come from tourists and visitors frequenting the county.
Business Responsibilities
- Businesses selling or delivering prepared food must collect the meals tax.
- These businesses are also required to remit the collected tax to the county.
- Owners can register for the county’s online reporting and payment portal starting Friday.
Areas Not Affected by the Tax
The new meals tax does not apply in the independent towns of:
- Clifton
- Herndon
- Vienna
- Fairfax City
- Falls Church
As the meals tax takes effect, residents and business owners in Fairfax County are adjusting to the new fiscal landscape. This change reflects the ongoing efforts to support local budgets through alternative taxation methods.
