Corporate income tax - 6 percent; has not changed since 1972.
Individual income tax - 2 percent on the first $3,000; 3 percent on the next $2,000; 5 percent on the next $12,000; 5.75 percent over $17,000.
Sales and use tax - 5.3 percent (4.3 percent state and 1 percent local); the fifth lowest rate in the nation. Broad sales tax exemptions for business include all purchases used directly in production; gas, electricity, or water delivered through mains, lines, or pipes; and custom computer software.
Real estate is taxed at the local level.
Tangible personal property tax rates vary by locality and type of property. Tangible personal property includes motor vehicles; machinery and equipment; and office equipment, furniture, and fixtures. Exempt items include computer application software; furniture and fixtures and corporate aircraft of manufacturing, mining, and certain other businesses; manufacturers' inventory; and merchandise in a foreign trade zone.
Localities may exempt certain kinds of property or tax it at a lower rate.
Localities also may impose the Consumer Utility Tax on utility bills and either a Business, Professional and Occupational License (BPOL) Tax or a Merchant's Capital Tax.
Real Estate Taxes
|Chesterfield||$0.96||For additional information on local taxes click here|
|Hanover County||$0.81 Hanover (outside Town of Ashland)
$0.90 Hanover (inside Town of Ashland)
|For additional information on local taxes click here|
|Henrico||$0.87||For additional information on local taxes click here|
|Richmond||$1.20||For additional information on local taxes click here|
Rates are per $100 of assessed value.
For a complete guide to Virginia State and Local Taxes, please view the Virginia Guide to Local Taxes on Business (interactive booklet will open in a new window). This guide is prepared by the Virginia Economic Development Partnership.