TAXES

When it comes to taxes and operating costs, we strive to make our community business friendly. In the past few years, Henrico County has lowered both its Machinery & Tools Tax (M&T) and Aircraft Tax by 70%. Our Real Estate Tax rate has not increased since 1978.

Henrico County boasts highly competitive tax rates while still maintaining high levels of service to its residents and businesses. 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 2016: Henrico County Tax Rate
Real Estate Tax $0.87/$100
 
Machinery & Tools Tax Rate $0.30/$100
 
Tangible Personal Property Tax $3.50/$100
 
Business and Professional Licenses Tax
The Business and Professional License Tax is based on gross receipts exceeding $100,000, with a minimum tax of $30 for all but Utility companies. When gross receipts equal $100,000 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 schedule relevant to the gross purchases exceeding $100,000.
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
 
Electric Utility Consumers Tax Rate
Residential $0.70 plus the rate of $0.007537 per kilowatt hour delivered; maximum monthly tax of $1.00
Commercial $1.15 plus the rate of $0.00713 per kilowatt hour delivered; maximum monthly tax of $10.00
Industrial $1.15 plus the rate of $0.007603 per kilowatt hour delivered; maximum monthly tax of $10.00
 
Aircraft Tax Rate $0.50
 
Vehicle License Tax
Passenger Vehicles (4,000 pounds and under) $20.00
Passenger Vehicles (over 4,000 pounds) $25.00
Trucks (by weight) $20.00 - $64.00
Trailers (by weight) $6.50 - $22.00
Motorcycles $15.00
 
Lodging Tax 8%
 
Local Sales Tax 1%

 

Virginia State Taxes

Year 2016: State 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%