Tax Rates

​Local and Sta​te 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 ​
Real Estate​$0.99 per $100 assessed value
Real Estate Rate for Energy-Efficient Buildings$0.84​​ 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 RATESNATIONAL AVERAGE*
Corporate Income Tax6%6.49%
State and Local Sales/Use Tax6%​6.94​%

Source: *​Calculated by Virginia Economic Development Partnership​, September 2019

Federal Income Tax R​ates

The United States imposes a tax on the profits of US resident corporations at a rate of 21 percent (reduced from 35 percent by the 2017 Tax Cuts and Jobs Act).

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.​

Unemployment insurance is part of an employer-paid program that provides temporary, partial income replacement to qualified individuals who are unemployed through no fault of their own.

​​​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​