Taxes | Richmond VA, Economic and Community Development

Taxes

State and Local Taxes

Richmond: Virginia's Business Capital

The Commonwealth of Virginia is continually ranked as one of the most corporate tax-friendly states in the nation. Virginia’s moderate 6% corporate income tax has not been raised in more than thirty years. In 2011, Ernst & Young, in conjunction with The Council on State Taxation (COST) listed Virginia among the top 10 states with the lowest effective tax rates for new capital investments.

The city of Richmond offers significant tax incentives and abatements, particularly in its three significant Enterprise Zones, which cover roughly two-thirds of the city. Compared to similar cities in the north east and west coast, the city of Richmond offers a significant cost efficiency while at the same time being a capital city, centrally located along the east cost and only 90 miles from Washington, DC.

To learn more about the State of Virginia and City of Richmond tax rates, please look below.

Commonwealth of Virginia:

Corporate Income Tax

  • Tax rate of 6%, not raised in over thirty years
  • Has a three-factor apportionment formula of payroll, property and sales (with sales double-weighted)
  • A single-factor apportionment election based on sales for manufacturing companies
  • Tax credits for job creation and investment in economically stressed areas
  • No franchise or net worth tax

Sales and Use Tax

  • The total tax is 5 percent (4 percent state and 1 percent local)
  • A seller is subject to a sales tax on gross receipts derived from retail sales or leases of taxable tangible personal property.
  • Manufacturers do not pay tax on purchases used for production; distributors do not pay tax on items purchased for resale.

TAX COMPARISON

Taxes

Rates

 

Virginia

U.S. (Median)

South Atlantic (Median)

Income Taxes:

Corporate Income Tax

6.00%

6.90%

6.90%

Sales and Use Taxes:

State Tax

4.00%

6.00%

6.00%

State and Typical Local Tax (combined)

5.00%

6.00%

6.00%

Source: Research Institute of America, State and Local Taxes: All States Tax Guide, November 16, 2010

 

City of Richmond:

 

Add to home page preview

No
 
City of Richmond
Economic & Community Development

Main Street Station
1500 East Main Street, Suite 400

Richmond, VA 23219
804.646.5633