STATE

• Corporate Income Tax Rate - 6% (last increase in 1972)
• Personal Income Tax Rate - 2%-5 1/4%
• Retail Sales Tax Rate - 5% (includes 1% collected for the city)
• Unemployment Insurance Rate - Virginia's unemployment insurance tax is calculated using an employer's past unemployment experience, known as the employer's experience rating, and using the State's unemployment compensation experience. The tax rates range from 0.2% to 6.3% of the first $8,000 of each employee's annual wage.
• Workers Compensation Rate - Rates vary by industry and occupation, but Virginia's manufacturers pay the lowest workers compensation rates in the country

LOCAL

• Real Estate Tax Rate - $1.06 per $100 of 100% of assessed value
• Business Personal Property Rate - $4.08 per $100 of 20% of the original cost (manufacturers are exempt)
• Motor Vehicle Personal Property Tax Rate - $4.08 per $100 of 100% of assessed value; this tax is being phased out under a plan established by the Virginia General Assembly
• Machinery & Tool Tax Rate - $3.20 per $100 of 20% of the original cost (for manufacturers only)
• Utility Tax Rates
  • Phone - 25% of first $50 per month
  • Gas - 25% of first $450 per month
  • Electric - 25% of first $450 per month
  • Water - None
• Business Licenses
  • Retail - $50 fee if annual gross receipts are below $100,000. If annual gross receipts exceed $100,000 the rate is $0.20 per $100 on all gross receipts.
  • Wholesale - $50 fee if annual gross purchases are below $100,000. If annual gross purchases exceed $100,000 the rate is $50 on the first $10,000 of gross purchases and $0.12 per $100 on all gross purchases in excess of $10,000.

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