TAXES

When it comes to taxes and operating costs, we strive to make our community business friendly. Henrico County boasts highly competitive tax rates while still maintaining high levels of service to its residents and businesses. Our dedication to a stable, business-friendly tax environment includes the following recent changes:

  • Lowered machinery and tools tax (M&T) from $1.00/$100 to $0.30/$100 of assessed value, the lowest effective rate in Central Virginia ('15)
  • Decreased aircraft tax to $0.50 per $100 of assessed value ('16)
  • Reduced business license tax (BPOL), increasing non-taxable income threshold from $100,000 to $200,000 ('17)
  • Cut data center tax rate by 88.6% to $0.40/$100 on computer and related equipment for data centers ('17)
  • Our real estate tax has not increased since 1978

A partial list of the major state and local tax rates are listed below.

For business personal property depreciation schedules, please refer to the Henrico Business Tax Summary. Full detailed information on business taxes can be found in the Henrico County Principal Business Taxes document.

Henrico County Taxes

Year 2018: Henrico County Tax Rate
Real Estate Tax $0.87/$100
 
Machinery & Tools Tax Rate $0.30/$100
 
Tangible Personal Property Tax $3.50/$100
 
Data Center Tax Rate $0.40/$100
 
Business and Professional Licenses Tax
The Business and Professional License Tax is based on gross receipts exceeding $200,000, with a minimum tax of $30 for all but Utility companies. When gross receipts equal $200,000 or less, an application is required, but no tax is due.
Retail Merchants $0.20 per $100
Professional Services $0.20 per $100
Fee-Basis Contractors $1.50 per $100
Contract-Basis Contractors $0.15 per $100
Utility Companies (including cellular telephone companies) $0.50 per $100
Wholesale Merchants
Tax is imposed based on the following variable rate; the first $200,000 of gross purchases is excluded from the tax for an item.
For purchases $1.00 to $10,000 $25 (flat fee)
For purchases $10,001 to $5,000,000 $0.20 per $100
For purchases $5,000,001 to $15,000,000 $0.15 per $100
For purchases $15,000,001 to $25,000,000 $0.10 per $100
For purchases $25,000,001 to $50,000,000 $0.05 per $100
For purchases $50,000,001 to $100,000,000 $0.025 per $100
For purchases $100,000,001 and over $0.0125 per $100
 
Aircraft Tax Rate $0.50/$100
 
Lodging Tax 8%
 
Local Sales Tax 1%

 

Virginia State Level Taxes

Year 2018: Commonwealth of Virginia Tax Rate
Corporate Income Tax 6%
 
Personal Income Tax
$0 – $3,000 2%
$3,001 – $5,000 $60 + 3% of excess over $3,000
$5,001 – $17,000 $120 + 5% of excess over $5,000
$17,001 and above $720 + 5.75% of excess over $17,000
 
Unemployment Insurance Tax
New Employer's Rate 2.57%
Minimum 0.17%
Maximum 6.27%
Wage Base $8,000
 
Sales & Use Tax 4.3%