Proposed Virginia Transportation Taxes Could Raise Costs for Uber and Delivery Riders

New regional taxes and fees aim to fund infrastructure, but businesses warn of increased consumer costs.

Jan. 29, 2026 at 4:15pm

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The Virginia General Assembly is considering a proposal to restructure the state's sales and use tax system, including creating several new regional taxes and fees to fund transportation projects. The legislation would lower the statewide sales tax rate but expand the tax base and introduce new levies in Northern Virginia and surrounding areas, including a retail delivery fee and a regional highway use fee. While supporters say the plan will generate sustainable transportation funding, businesses like Uber have criticized the potential impact on riders and drivers, arguing it could increase costs for consumers.

Why it matters

This proposal is part of a broader effort by Virginia lawmakers to address the state's transportation infrastructure needs through new revenue sources. However, the potential impact on businesses and consumers, particularly those relying on rideshare and delivery services, has raised concerns about affordability and access to essential transportation options.

The details

The legislation would reduce Virginia's statewide retail sales and use tax rate from 4.3% to 4% beginning January 1, 2027, but expand the tax base to include certain taxable services and digital personal property. It would also establish new regional taxes and fees in Northern Virginia and surrounding areas, including an additional 0.385% retail sales and use tax for counties and cities that are members of the Northern Virginia Transportation Commission, a 0.615% rate for non-member jurisdictions within the Northern Virginia Transportation Authority, and a 0.2% tax for localities in the Potomac and Rappahannock Transportation Commission. Additionally, the bill would create a 20-cent retail delivery fee and a regional highway use fee.

  • The statewide sales tax rate reduction and expansion of the tax base would take effect on January 1, 2027.
  • The regional taxes and fees would begin on dates specified in the legislation.

The players

Virginia General Assembly

The state legislature of Virginia that is considering the transportation funding proposal.

Uber

A rideshare company that has criticized the potential impact of the new taxes and fees on riders and drivers.

Northern Virginia Transportation Commission

A regional transportation agency that would be subject to the additional 0.385% retail sales and use tax under the proposal.

Northern Virginia Transportation Authority

A regional transportation agency that would be subject to the higher 0.615% retail sales and use tax for non-member jurisdictions under the proposal.

Potomac and Rappahannock Transportation Commission

A regional transportation agency that would be subject to the additional 0.2% retail sales and use tax under the proposal.

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What they’re saying

“As Virginia residents continue to struggle with high cost-of-living, efforts to impose new taxes and fees on rideshare and delivery services are unwise.”

— Uber spokesperson

“While we share legislative leadership's goal of funding transportation and lowering costs for Virginians, these proposals will likely have the opposite effect: increasing costs on both riders and drivers, decreasing transportation options, and harming small businesses.”

— Uber spokesperson

What’s next

Lawmakers have not yet taken final action on the bill. If approved, the tax changes would take effect in 2027, while the regional taxes and fees would begin on dates specified in the legislation.

The takeaway

This proposal highlights the ongoing tension between funding critical transportation infrastructure and the potential impact on businesses and consumers, particularly those relying on rideshare and delivery services. As Virginia lawmakers seek sustainable revenue sources, they will need to carefully balance the needs of the transportation system with the affordability concerns of residents and businesses.