Greater Richmond Partnership Business First Greater Richmond

Greater Richmond companies have access to a network of resources needed to support their business success.

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Richmond: Love What You Find

Relocating to Greater Richmond, Virginia? You will find what you love, and love what you find.

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The City of Richmond & Counties of Chesterfield, Hanover and Henrico


Local & State Taxes

State Taxes

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.

Download our Local & State tax rates

Local Taxes

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

Locality Tax Rate  
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.

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