In the state of Virginia cities and counties are separate governing entities, and school districts do not have their own taxing authority. The Richmond Region is comprised of the City of Richmond and Chesterfield, Hanover and Henrico counties.
Both state and local governments are supportive of business. The tax burden is moderate and is shared between business and individuals. Virginia’s corporate income tax rate has not changed since 1972.
State and local governments are required to operate with balanced budgets and are known for their fiscal responsibility. Virginia consistently receives a Triple A bond rating from the major rating agencies.
Corporate income tax – 6 percent; steady 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 seventh 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||$0.95||Additional information on local taxes|
|Hanover County||$0.81 Hanover (outside Town of Ashland)
$0.91 Hanover (inside Town of Ashland)
|Additional information on local taxes|
|Henrico||$0.87||Additional information on local taxes|
|Richmond||$1.20||Additional information on local taxes|
Rates are per $100 of assessed value.