Credit card processing and merchant services in Chesapeake, VA
Chesapeake restaurants collect a 6% city food and beverage tax along with the 6% Hampton Roads sales tax, then report and remit the city tax to the Commissioner of the Revenue by the 20th of each month.
In Chesapeake, a restaurant check carries two taxes at the same rate. The city's code levies a 6% tax on the total amount paid for food and beverages. Sales tax adds another 6%, because Chesapeake is in Virginia Tax's Hampton Roads region, where a 0.7% regional tax brings the 5.3% general rate to 6%. Virginia's 1% grocery rate doesn't reach hot prepared food, so dinner gets the full rate. A $50 dinner check carries $3.00 in sales tax and $3.00 in meals tax, 12% combined.
The city collects this tax itself, not Virginia Tax. Chesapeake's code has the business hold what it collects in trust for the city, and the report and payment are due on or before the 20th of each month for the tax collected in the month before. You sign the report and deliver it to the Commissioner of the Revenue with the full remittance. Miss the deadline and the code adds a 5% penalty, plus 5% more for each further 30 days, up to 25%.
Set up your POS so the city tax sits on its own line, apart from sales tax. Then the monthly report comes straight out of your sales summary, and the records the code says to keep for five years are already in one place.
Caterers should also read Virginia's total-price rule. Since July 1, 2025, Section 59.1-608 of the Code of Virginia has required advertised or displayed prices to include all mandatory fees or surcharges. In our reading, a service charge every client pays belongs in the quoted price. An optional credit card surcharge that clients can avoid is a different matter, and Virginia doesn't cap it beyond Visa's and Mastercard's limits. Our Virginia page has the statute and sources.
Chesapeake had 255,332 residents in the Census Bureau's July 2025 estimate. If you also operate in Norfolk or Virginia Beach, each city sets its own local taxes, so a restaurant group needs separate settings per location. Caterers can send invoices and payment links from our virtual terminal, and a free statement review shows what card payments cost you now.
Rules that matter in Chesapeake
Chesapeake's 6% food and beverages tax
Article XII of Chapter 30 of the Chesapeake City Code levies a tax on each purchaser of food and beverages equal to 6% of the total amount paid. The business collecting it holds the tax in trust for the city until it's remitted.
Reports and remittances are due on or before the 20th of each month, covering the tax collected or owed for the month before, and go to the Commissioner of the Revenue. A late remittance draws a 5% penalty, with 5% more for each additional 30 days, up to 25% in all. Sellers keep records showing the purchases taxed under the article for five years.
Sales tax still applies: hot prepared food and alcohol are left out of Virginia's 1% grocery rate, so a hot dinner or a glass of wine in Chesapeake is taxed at the 6% Hampton Roads rate as well.
Sources: Chesapeake City Code, Chapter 30, Article XII: Food and beverages tax (Municode); Virginia Tax, Grocery tax; Virginia Tax, Retail sales and use tax
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Common questions
When is Chesapeake's food and beverage tax due?
On or before the 20th of each month, covering what you collected or owed in the month before. Chesapeake's code has you sign the report and deliver it to the Commissioner of the Revenue along with the full remittance. A late payment picks up a 5% penalty that grows by 5% for each additional 30 days, to a maximum of 25%.
What is the total tax on a restaurant meal in Chesapeake?
12% on a taxable meal: the 6% Hampton Roads sales tax plus the city's 6% food and beverage tax. A $50 check carries $3.00 of each. The sales tax goes to Virginia Tax, and the meals tax goes to the city through monthly returns filed with the Commissioner of the Revenue.
How long must a Chesapeake restaurant keep food and beverage tax records?
Five years. Chesapeake's code requires every business that pays the tax to the city to keep records showing all purchases taxable under its food and beverages tax article for that long. POS sales summaries and copies of your monthly reports to the Commissioner of the Revenue are the place to start.
Can a Chesapeake caterer add a service charge to every invoice?
It can, but since July 1, 2025, Virginia's Section 59.1-608 has required advertised and displayed prices to include all mandatory fees or surcharges. In our reading, a charge every client has to pay is mandatory, so it belongs in the price you quote. Have your attorney review your proposals and price lists.
Does Chesapeake have the same meals tax as Norfolk?
No. Chesapeake's food and beverage tax is 6%, while Norfolk's is 6.5%. Both cities are in the Hampton Roads region at 6% sales tax, so a restaurant group with locations in each needs a different meals tax setting at each store. Our Norfolk page has that city's details.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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