Tax Information

Unlike other states, Virginia's 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's solid tax structure and strong economic base allows us to enjoy a AAA 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 U.S. 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.

NON-MANUFACTURING BUSINESS PERSONAL PROPERTY TAX
This tax is levied on all furniture, fixtures, tools, signs, and all equipment used in the conduct of business.  The base rate applicable to this class of property is currently $3.50 per $100 of assessed value.

Determining Assessed Value:
     Business Personal Property
     Assessed valuation is determined by orginal cost and date of purchase.
     Formula for assessment:  To determine the assessment, multiply reported purchase cost by percentages shown below:
TANGIBLE PERSONAL PROPERTY
(excluding computer equipment)

COMPUTER EQUIPMENT

MANUFACTURERS
The 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.  The Machinery and Tools Tax is currently $1.00 per $100 of assessed value.

Machinery & Tools

VEHICLES
Business and personal vehicles are currently taxed at $3.50 per $100 of assessed value.

The assessed value of having gross weight of 14,000 pounds and less and all automobiles is based on the average loan value in the N.A.D.A. Official Used Car Guide or the N.A.D.A. Older Car Guide.

The assessed value of trucks greater than 14,001 pounds in gross weight, motorcycles, boat motors, boat trailers, campers, and utility trailers is based upon original cost.  To determine the assessment, multiply reported purchase cost by percentages shown below:
 

VEHICLE LICENSE TAX
This tax is paid annually and is billed on June 5th or December 5th of each year.  The rates are as follows:
 

INFORMATION:
For questions or information regarding business personal property, call (804) 501-4310.
For questions or information regarding individual or business vehicles, call (804) 501-4263.
For questions or information regarding vehicles license tax rates, call the Vehicle Section at (804) 501-4263.

AIRCRAFT:
Aircrafts are assessed on the basis of cost and date acquired.  The base tax rate of aircraft is currently $1.60 per $100 of assessed value. 

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.  A Vehicle License Tax is levied on each vehicle and is billed on May 5th and December 5th of each year.

VEHICLE LICENSE TAX RATE:

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.