Cost of Doing Business

The cost of doing business here is well below the national average, thanks in large part to low City and state tax rates, competitive wages, and transportation infrastructure that provides businesses access to more than two-thirds of the U.S. population within a two-day drive.​

Our Advantages

  • For data centers: accelerated appreciation for qualified data centers on computers and peripherals used in data centers* the tax rate is $0.40 per $100 of assessed value, with a depreciation schedule of 40 percent of the original cost (data centers must meet the code requirement in order to qualify for the discounted rate)
  • For manufacturers: Virginia Beach is one of the few in Virginia to eliminate the machinery and tools tax.
  • Incentive program for new qualifying businesses: If you meet the code qualifications and have gross receipts over $200,000 for the first two license years you will only pay $50.00 each year.

Source: City of Virginia Beach Commissioner of the Revenue, 2023

In ​2019, Forbes.com and Forbes Magazine placed Virginia as the 4th Best State for Business.
Virginia ranked No. 1 in CNBC’s 2021 America’s Top States for Business competition. The state took the top spot five times and it is the first state to achieve the honor twice in a row.


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.​

ESTIMATED AVERAGE UTILITY RATES
Industrial Electricity
(Cents per kWh)
$0.062
Industrial Natural Gas
(Dollars per 1000 cubic feet)
$5.08

Source: VEDP, December 2021

For additional information, click here.

​​Cost of Living Index

COST OF LIVING INDEXNATIONAL AVERAGE = 100
Composite index97.4
Grocery items95.6
Housing93.0
Utilities102.0
Transportation93.6
Health care94.6
Miscellaneous goods and services102.9

Source: Council for Community Economic Research Cost of Living Index, 2021 Annual Average Data​

For more cost of living information, click here.

​​​Workers' Compensation and Unemployment Rate Comparison

STATE​WORKERS' COMPENSATION RATE
PER $100 OF PAYROLL
UNEMPLOYMENT INSURANCE RATE
PER EMPLOYEE
Virginia$7.063.60%
California$16.993.85%

South Carolina

$18.193.03%
Georgia$19.483.98%
Maryland$7.075.25%
New Jersey$10.004.70%
New York$15.324.35%
North Carolina$17.085.88%
Pennsylvania$13.265.61%
U.S. Average$19.134.00%

​Source: Cerity, Patriot, 2020​

Office

VIRGINIA BEACH

UNITED STATES

Class A

$27.48$57.38
Class B
$19.67
$30.13
Class C
$15.76
$23.72

Industrial


VIRGINIA BEACH

UNITED STATES

Flex

$9.10$13.73
Warehouse$7.68$8.81

Retail


VIRGINIA BEACH

UNITED STATES

General Retail

$17.11
$21.69
Shopping Center
$13.25
$15.16

Source: CoStar, 2021