Custodial Taxes

On April 9, 2025, the Arlington County Board voted to increase the Meals, Food, and Beverage Tax (MEA) rate from 4% to 5%. Effective July 1, 2025, each provider collecting MEA in Arlington County is required to collect and remit 5% on the total cost of prepared food and beverage sales.

If you have not already done so, please register for a CAPP account at capp.arlingtonva.us. This portal enables you to view and manage your accounts.

What is taxable?

For more information, see Arlington County Code, Chapter 65.

• The Commissioner of Revenue considers the restaurant that prepared the food to be the “seller” responsible for collecting and remitting meals tax. Third-party delivery services act as agents for the restaurant.
• Restaurants or caterers preparing meals specifically for commercial airlines should charge a 2% food and beverage tax.
• Meals tax exemptions are much narrower than state sales tax exemptions. Most nonprofits, for example, are not exempt from paying meals tax even if exempt from sales tax.
• A Health License is required for new food establishments or whenever there is a change of ownership, and it must be renewed annually.

Businesses must file their custodial tax returns online via CAPP by 11:59 p.m. ET on the 20th of each month.

Questions about CAPP or MEA filings? Call 703-228-3060 or email business@arlingtonva.us.

Transient Occupancy Tax (TOT) is an 8.25% tax rate on the total cost paid for each room or space rented in any hotel, motel, or tourist home, and occupied by the same individual for less than 30 consecutive days. The 8.25% rate includes the 5% local County TOT, the 0.25% local tourism TOT, and the 3% state regional TOT.

For more information, see Arlington County Code, Chapter 40 and Code of Virginia §58.1-1743.

Businesses must file their custodial tax returns online via CAPP by 11:59 p.m. ET on the 20th of each month.

• Certain rental businesses may be eligible for special treatment that exempts their rental property from business tangible property taxes and assigns a low business license tax rate. These businesses collect a 1% pass-through tax on all short-term rental receipts.
• As an ongoing business, you must submit an Application for Certification as a Short-Term Rental Business annually on or before February 1. If starting a new business, the application must be submitted within 30 days of opening.
• See Arlington County Code, Chapter 64 for more information.
• You must submit short-term rental tax reports quarterly on or before the 20th of April, July, October, and January.

Questions? Call 703-228-3060 or email business@arlingtonva.us.

Wholesalers who distribute cigarettes to Arlington’s retail businesses collect a monthly Cigarette Tax.

• $0.40 on each pack of 20 cigarettes
• $0.50 on each pack containing 25 cigarettes
• File Cigarette (CIG) tax returns online via CAPP by 11:59 p.m. ET on the 20th of each month.

For more information, contact the Business Tax Division at 703-228-3060 or business@arlingtonva.us.