Tax Information

Unlike other states, in Virginia, cities and counties are separate taxing entities without overlapping tax structures. This means that any item taxed by one location cannot be taxed by another.

For the County, most of the revenue from local sources is derived primarily from real estate property taxes, personal property and business license taxes.

Tax rates are set by the County Board of Supervisors and are applied to the assessed value of both personal and real property.

Henrico County, with a very sound tax structure and a strong economic base, enjoys a Triple-A bond rating designation from three major national bond rating services. Such a favorable bond rating helps contribute to our relatively low tax rates.

Real Estate Tax

Real estate taxes in Henrico County are lower than many areas in the northeastern United States and are very competitive with other southeast US business locations. Current rate is $0.87 per $100 of assessed value. Our real estate tax rate remained stable for 25 years and actually decreased in recent years.

Business License Tax

The specific tax rate varies depending on the nature of the business, but the rate was recently reduced across the board to further reinforce Henrico's pro-commerce environment.  Also, the county charges no tax if gross receipts are less than $100,000 per year.

Tangible Personal Property Taxes

Under Virginia State Law, all tangible personal property owned by individuals and companies and located in the County of Henrico on January 1 of each year are subject to tax. Non-Manufacturer - Business Personal Property Tax is levied on all furniture, fixtures, tools, signs and all equipment used in the conduct of business. Manufacturers - Machinery and Tools Tax is levied on machinery and tools used in the manufacturing, processing or reprocessing, mining, radio or television broadcasting, dairy, dry-cleaning, or laundry business.

Daily Rental Tax

Daily rental tax is levied in lieu of Business Personal Property Tax on the daily rental property of a certified short-term rental business.

Sales Tax

Retailers collect 5.0% Retail Sales tax imposed on retail consumer sales. The State portion if this levy is 4.0% and the County portion is 1.0%. Henrico County does not levy additional sales tax on Admissions, Cigarettes, Meals, or Restaurant Sales like many other localities.

Vehicle License Tax

Vehicle license decals must be purchased annually from Henrico County.

State Taxes

Virginia's long tradition of fiscal discipline has earned the Commonwealth a coveted AAA bond rating. Virginia's moderate corporate income tax is one of the lowest in the nation and has not been raised in nearly 30 years.