Virginia Beach offers one of the most competitive business environments in the country. With low tax rates, strategic incentives, and financing tools designed to help you scale, this is a city where smart investments go further.
Our Advantages
Low Rates, High Return
Together, the Commonwealth of Virginia and the City of Virginia Beach offer one of the most balanced tax structures in the U.S.
City of Virginia Beach Tax Rates
Taxable | Rate |
|---|---|
Real Estate | $0.97 per $100 assessed value |
Real Estate Rate for Energy-Efficient Buildings | $0.82 per $100 assessed value |
Personal Property | $4.00 per $100 assessed value |
Machinery and Tools | $0.00 |
Business Property | $4.00 per $100 assessed value 40% of the original cost (tangible property) 33% of the original cost for manufacturers |
Data Center Business Property | $0.40 per $100 assessed value |
Business license fees
Virginia Beach supports new and small businesses with graduated license fees:
Gross Receipts | Annual License Fee |
|---|---|
$0 – $25,000 | $25 |
$25,001 – $100,000 | $40 |
$100,001 – $200,000 | $50 |
$200,000+ (new to city) | $50 for the first two years |
$200,000+ (established businesses) |
State of Virginia tax rates
Corporate Income Tax: | Virginia 6% flat rate National average: 6.5% | The sales factor in the state's income apportionment formula is double-weighted, benefiting companies with high payrolls and property in Virginia. |
|---|---|---|
Sales and Use Tax | Virginia: 6% (4.3% state, 1% local, 0.7% transportation) National average: 6% | Exemptions available for manufacturing equipment, pollution control devices, R&D purchases, utilities, Internet access, and data center equipment |
Property Tax | None | Real estate and tangible personal property are taxed at the local level. Not taxed in Virginia: manufacturers’ inventory, intangible property, and furniture/fixtures |
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
Comparison | Workers’ compensation rate per $100 of payroll | Unemployment insurance rate per employee |
|---|---|---|
Virginia | $7.60 | 3.60% |
U.S. average | $19.13 | 4% |
Invested in Your Success
Virginia and Virginia Beach back your business with serious support—grants, tax breaks, and programs that help you hire, expand, and lead. From tax credits to workforce training, we offer a powerful suite of programs to boost business growth.
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