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Aircraft tax · United States

Virginia aircraft sales and use tax

Virginia charges a 2 percent aircraft sales and use tax in place of its retail sales tax, with a 60-day fly-away exemption for aircraft registered elsewhere. Repair parts for aircraft of 2,400 pounds or more are exempt through June 2030, and aircraft register with the Department of Aviation and pay local personal property tax.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in Virginia?

Taxed. Two percent of the sale price of each aircraft sold in Virginia, with no deduction for trade-ins. It is collected by the Tax Commissioner before the Department of Aviation registers the aircraft, and the retail sales tax does not apply to aircraft taxed this way.

Do you owe use tax on an aircraft bought outside Virginia?

Depends. An aircraft bought elsewhere and required to be registered in Virginia owes two percent of its sale price. If it is registered six months or more after acquisition, the tax is two percent of the lower of market value or purchase price. Tax paid to another state on the purchase is credited, up to the Virginia tax.

  • However, if the aircraft is licensed in the Commonwealth six months or more after its acquisition, the tax shall be two percent of the market value of such aircraft at the time it is licensed or two percent of the purchase price thereof, whichever is lower.

    Code of Virginia, Va. Code 58.1-1502(2) · checked October 18, 2026

  • The amount of the credit shall be equal to the tax paid by him to another state by reason of the imposition of a similar tax on his purchase or use of the property or the amount of Virginia retail sales and use tax paid on the component parts of such assembled aircraft.

    Code of Virginia, Va. Code 58.1-1504 · checked October 18, 2026

  • Every resident of the Commonwealth owning a civil aircraft, every nonresident owning a civil aircraft based in the Commonwealth for more than 90 days during any 12-month period, and every owner of an aerial application aircraft operating within the Commonwealth or of a civil aircraft operated in the Commonwealth as a for-hire intrastate air carrier shall register such aircraft with the Department before such aircraft is operated in the Commonwealth.

    Code of Virginia, Va. Code 5.1-5(A) · checked October 18, 2026

What aircraft sales tax exemptions does Virginia have?

Depends. An aircraft sold in Virginia but registered outside it is exempt if removed within 60 days of purchase. Scheduled air carriers under Parts 121, 129 or 135, government aircraft, certain charities and display-only warbirds built in 1954 or earlier are exempt. Aircraft brought in only for major maintenance or repair need not register.

  • Any aircraft sold in the Commonwealth as evidenced by Federal Aviation Administration Bill of Sale AC Form 8050-2 and registered outside of the Commonwealth as evidenced by Federal Aviation Administration Aircraft Registration AC Form 8050-1 shall be exempt from the sales tax imposed by this chapter, so long as the aircraft is removed from the Commonwealth within 60 days of the date of purchase on the Bill of Sale.

    Code of Virginia, Va. Code 58.1-1505(D) · checked October 18, 2026

  • "Scheduled air service" means any scheduled service provided by an air carrier or foreign air carrier operating pursuant to authority issued by the U.S. Department of Transportation and under Federal Aviation Regulations, Parts 121, 129 or 135.

    Code of Virginia, Va. Code 58.1-1501, Scheduled air service · checked October 18, 2026

  • Aircraft that are (i) considered Warbirds, manufactured and intended for military use, excluding those manufactured after 1954

    Code of Virginia, Va. Code 58.1-1505(B) · checked October 18, 2026

  • Notwithstanding the provisions of subsection A, no aircraft shall be required to be registered if the aircraft is brought into the Commonwealth solely for major maintenance or major repair.

    Code of Virginia, Va. Code 5.1-5(C) · checked October 18, 2026

Are aircraft rentals taxed in Virginia?

Not clearly published. Virginia's aircraft tax defines a sale to include a lease or rental, but taxes rental receipts directly only for commercially licensed aircraft held by a dealer who elects to pay two percent of monthly gross receipts. How ordinary hourly rentals of an aircraft already taxed at purchase are treated is not stated.

  • "Sale" means any transfer of ownership or possession of an aircraft by exchange or barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever.

    Code of Virginia, Va. Code 58.1-1501, Sale · checked October 18, 2026

  • Two percent of the monthly gross receipts from the lease, charter or other use of any aircraft licensed for commercial use pursuant to § 5.1-5 B and held for sale by a dealer who has elected to be taxed under this paragraph as provided in § 58.1-1507.

    Code of Virginia, Va. Code 58.1-1502(3) · checked October 18, 2026

Is flight instruction taxed in Virginia?

Not clearly published. For a dealer paying on gross receipts, charges for pilots or instructors in the aircraft are taxed unless separately stated on the invoice. Virginia publishes no guidance on instruction charges at other schools.

  • "Gross receipts" means the charges made or voluntary contributions received for the hourly rental and maintenance of an aircraft, all other charges for the use of an aircraft and, unless separately stated on the invoice, all charges for services of pilots or instructors in such aircraft.

    Code of Virginia, Va. Code 58.1-1501, Gross receipts · checked October 18, 2026

Are aircraft parts and maintenance labor taxed in Virginia?

Depends. Until July 1, 2030, parts, engines and supplies used to maintain or repair aircraft, avionics and engines are exempt, for manned aircraft with a maximum takeoff weight of at least 2,400 pounds. Tools are not. Separately charged repair labor is not taxed.

  • Beginning July 1, 2018, and ending July 1, 2030, parts, engines, and supplies used for maintaining, repairing, or reconditioning aircraft or any aircraft's avionics system, engine, or component parts.

    Code of Virginia, Va. Code 58.1-609.10(20) · checked October 18, 2026

  • However, for manned systems, "aircraft" shall include only aircraft with a maximum takeoff weight of at least 2,400 pounds.

    Code of Virginia, Va. Code 58.1-609.10(20) · checked October 18, 2026

  • An amount separately charged for labor or services rendered in installing, applying, remodeling, or repairing property sold or rented.

    Code of Virginia, Va. Code 58.1-609.5(2) · checked October 18, 2026

Does Virginia register or tax aircraft every year?

Taxed. Aircraft register with the Virginia Department of Aviation, for no more than $30 a year for a noncommercial single aircraft, $55 for two years or $70 for three. Localities also tax aircraft as tangible personal property, in a separate class whose rate may not exceed that of general personal property.

  • The Department shall furnish any necessary forms pursuant to the issuance of noncommercial single aircraft registration and may assess a fee for such issuance not in excess of $30 annually. The Department may offer multiyear noncommercial single aircraft registrations not to exceed three years. The total fee for two-year registrations shall not exceed $55, and the total fee for three-year registrations shall not exceed $70.

    Code of Virginia, Va. Code 5.1-5(B) · checked October 18, 2026

  • All other aircraft not included in subdivision 2, 3, or 4 and flight simulators;

    Code of Virginia, Va. Code 58.1-3506(A)(5) · checked October 18, 2026

  • The governing body of any county, city, or town may levy a tax on the property enumerated in subsection A at different rates from the tax levied on other tangible personal property.

    Code of Virginia, Va. Code 58.1-3506(B) · checked October 18, 2026

  • The rates of tax and the rates of assessment shall (i) for purposes of subdivisions A 1, 2, 3, 4, 5, 6, 8, 11 through 20, 22 through 24, 26 through 47, and 49, not exceed that applicable to the general class of tangible personal property

    Code of Virginia, Va. Code 58.1-3506(B) · checked October 18, 2026

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