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Taxes

When it comes to tax rates and operating costs, we strive to make our community business friendly. Henrico boasts low tax rates while offering high levels of service to its residents and businesses. Our dedication to a stable, pro-business environment includes the following recent actions:

Lowered machinery and tools tax rate (M&T) from $1.00/$100 to $0.30/$100 of assessed value, the lowest effective rate in Central Virginia
Decreased aircraft tax rate to $0.50 per $100 of assessed value
Reduced business license tax rate (BPOL), increasing non-taxable revenue threshold from $500,000 to $1,000,000
Reduced R&D tax rate by 74% to $0.90/$100
Either maintained or decreased real estate tax rate since 1978

The Commonwealth of Virginia is also supportive of business. Its 6% corporate income tax rate has not changed since 1972.

A partial list of Henrico's tax rates is shown below. Additional tax related information can be found in our Henrico Business Tax Summary document.

Henrico Taxes

Year 2025: Henrico

Tax Rate

Real Estate Tax

$0.85/$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 $1,000,000. When gross receipts equal $1,000,000 or less, an application is required, but no tax is due.

Retail Merchants

$0.20 per $100 of gross receipts exceeding $1,000,000

Professional Services

$0.20 per $100 of gross receipts exceeding $1,000,000

Fee-Basis Contractors

$1.50 per $100 of gross receipts exceeding $1,000,000 or $30, whichever is greater

Contract-Basis Contractors

$0.50 per $100 of gross receipts exceeding $1,000,000 or $30, whichever is greater

Utility Companies (including cellular telephone companies)

$0.50 per $100

Wholesale Merchants

Tax is imposed based on the following variable rate; the first $1,000,000 of gross purchases is excluded from the tax for an item.

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

Aircraft Tax Rate

$0.50/$100

Local Sales Tax

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