Tax Rates
Tax Rates
Local and State Tax Rates
Together, the Commonwealth of Virginia and the City of Virginia Beach have one of the fairest tax structures of the 50 states. The Commonwealth has not raised its corporate income tax rate of 6% since 1972, and Virginia’s unemployment insurance rates and workers’ compensation costs are among the lowest in the nation.
| CITY OF VIRGINIA BEACH TAX RATES | |
|---|---|
| Real Estate | $0.99 per $100 assessed value |
| Real Estate Rate for Energy-Efficient Buildings | $0.84 per $100 assessed value |
| Personal Property | $4.00 per $100 assessed value |
| Machinery and Tools | $0.00 |
| Business Property Data Center Business Property | $4.00 per $100 assessed value 40% of the original cost (tangible property) 33% of the original cost for manufacturers $0.40 per $100 assessed value depreciation schedule: 40% of the original cost (computers and peripherals) for year 1-3; 30% for year four; 15% for year five and beyond |
Business License New businesses with gross receipts over $200,000: Capped at a flat fee of $50 for the first two years of operation for a business new to the City. (See the application for this incentive program.) Businesses with gross receipts of $0-$25,000: $25 View forms and documents pertaining to businesses. | Businesses with gross receipts of $25,000 - $100,000: $40 Businesses with gross receipts of $100,000 - 200,000: $50 Businesses with gross receipts exceeding $200,000 continue at their respective rate (See the industry classification types and rates.) |
Source: City of Virginia Beach, 2023
Real estate is assessed at 100% of its fair market value. Re-assessment notices are mailed in the first part of March, and assessment reviews are held from mid-March to the end of April. Annual real estate taxes are collected in two installments. Payment for the first half is due by December 5th of the same year, and the second half is due by June 5th of the following year.
State of Virginia Tax Rates
| VIRGINIA TAX RATES | NATIONAL AVERAGE* | |
|---|---|---|
| Corporate Income Tax | 6% | 6.75% |
| State and Local Sales/Use Tax | 6% | 6% |
Source: *Calculated by Virginia Economic Development Partnership, 2023
Federal Income Tax Rates
The United States imposes a tax on the profits of U.S. resident corporations at a rate of 21% (reduced from 35% by the 2017 Tax Cuts and Jobs Act).
Workers' Compensation and Unemployment Costs
Workers’ compensation insurance is required for most employers performing work in Virginia. It provides injured workers specific benefits while protecting employers from civil suits.
Unemployment insurance is part of an employer-paid program that provides temporary, partial income replacement to qualified individuals who are unemployed through no fault of their own.
Workers' Compensation and Unemployment Rate Comparison
| STATE | WORKERS' COMPENSATION RATE PER $100 OF PAYROLL | UNEMPLOYMENT INSURANCE RATE PER EMPLOYEE |
|---|---|---|
| Virginia | $7.06 | 3.60% |
| California | $16.99 | 3.85% |
South Carolina | $18.19 | 3.03% |
| Georgia | $19.48 | 3.98% |
| Maryland | $7.07 | 5.25% |
| New Jersey | $10.00 | 4.70% |
| New York | $15.32 | 4.35% |
| North Carolina | $17.08 | 5.88% |
| Pennsylvania | $13.26 | 5.61% |
| U.S. Average | $19.13 | 4.00% |
Source: Cerity, Patriot, 2020