Business Taxes and Fees

Unlike state and federal income taxes, the business, professional and occupational license (BPOL) tax in Virginia is based on your business gross receipts (revenue before deductions). Different classes of occupations pay different rates, reflecting their relative operating margins. Your occupational category is based on your description of your business and possible follow-up questions, in accordance with Code of Virginia guidelines .

Each calendar year’s BPOL tax is based on the prior year’s gross receipts, except for the first year, which is based on itself. When you apply for a license, you will be asked to provide a good faith estimate of your first year’s gross receipts, and pay an estimated tax. This estimate will be corrected to actual in your second year. The first year is the only year you will be asked for an estimate. Special flat fees are offered to small businesses whose entire gross receipts are below $100,000:
$0 to $3,999.99
No charge (except first year - minimum $30)
$4,000 to $49,999.99
$30
$50,000 to $99,999.99
$50
Otherwise, your entire gross receipts will be taxed according to the schedule below:
Category Rate Per Hundred Dollars
Wholesale 0.05
Contractor 0.16
Retail Sales
0.20
Business, Personal, Repair, and Other Services
0.36
Utility 0.50
Professional Services
0.58
In addition to the BPOL tax or fee, other fees may apply. For example, sellers or servers of alcoholic beverages pay annual fees depending on the type of beverages served or sold. Our business license inspector will be able to provide a more detailed estimate of your taxes and fees, depending on your business model. Please call 757-253-6698 for more information.