Tax Rates
Local and State Tax Rates
Together, the Commonwealth of Virginia and the City of Virginia Beach have one of the fairest tax structures of the 50 states. The Commonwealth has not raised its corporate income tax rate of 6% since 1972, and Virginia’s unemployment insurance rates and workers’ compensation costs are among the lowest in the nation.
| CITY OF VIRGINIA BEACH TAX RATES (AS OF JULY 1, 2017) |
|---|
| Real Estate | $1.00 per $100 assessed value |
| Real Estate Rate for Energy-Efficient Buildings | $0.85 per $100 assessed value |
| Personal Property | $4.00 per $100 assessed value |
| Machinery and Tools | $0.00 |
Business Property
Data Center Business Property | $4.00 per $100 assessed value 40% of original cost (tangible property) 33% of original cost for manufacturers
$0.40 per $100 assessed value
depreciation schedule: 40% of original cost (computers and peripherals) for year 1-3; 30% for year four; 15% for year five and beyond
|
Business License (per $100 of gross receipts) Capped at flat fee of $50 for the first two years of operation for a business new to the City. Business license fee applies to businesses with gross receipts exceeding $100,000. | Retailer: $0.20 Contracting: $0.16 Professional: $0.58 Service: $0.36 Wholesalers: $0.12 per $100 of gross purchases |
Source: City of Virginia Beach
Real estate is assessed at 100% of its fair market value. Re-assessment notices are mailed the first part of March, and assessment reviews are held from mid-March to the end of April. Annual real estate taxes are collected in two installments. Payment for first half is due by December 5th of the same year, and the second half due by June 5th of the following year.
State of Virginia Tax Rates | VIRGINIA TAX RATES | NATIONAL AVERAGE* |
|---|
| Corporate Income Tax | 6% | 6.39% |
| State and Local Sales/Use Tax | 6% | 6.85% |
Source: *Calculated by Virginia Economic Development Partnership, May 2017
Federal Income Tax Rates
The United States federal corporate income tax rates are set based upon a variety of factors, and range between 15 percent and 40 percent. Corporations may deduct local and state income tax expenses when computing federal tax income, generally resulting in a net effective rate of approximately 35 percent.
Workers' Compensation and Unemployment Costs
Workers’ compensation insurance is required for most employers performing work in Virginia. It provides injured workers specific benefits while protecting employers from civil suit.
Workers' Compensation and Unemployment Insurance Rate Comparison| STATE | WORKERS' COMPENSATION RATE
PER $100 OF PAYROLL, 2014 | UNEMPLOYMENT INSURANCE RATE
PER EMPLOYEE, 2016 (ESTIMATES) |
|---|
| Virginia | $0.77 | $146 |
| California | $2.00 | $342 |
| Florida | $1.44 | $98 |
| Georgia | $1.14 | $177 |
| Maryland | $1.11 | $231 |
| New Jersey | $1.51 | $805 |
| New York | $1.44 | $369 |
| North Carolina | $1.18 | $381 |
| Pennsylvania | $1.49 | $570 |
| U.S. Average | $1.32 | $176 |