Virginia's corporate income tax has not been raised in forty years, since 1972. At 6 percent, our rate is one of the lowest in the nation. In Virginia, items taxed at the state level are not taxed at the local level, with the exception of the sales and use tax levied by both state and local governments. The combined state and local sales tax is either 5.3 or 6 percent depending upon the locality. Virginia also differs from most states in that its counties and cities are separate taxing entities. A company pays either county or city taxes depending upon its location. If the company is located within the corporate limits of a town, it is subject to town and county levies.
Virginia's long tradition of fiscal discipline has earned the Commonwealth a coveted AAA bond rating since 1938, longer than any other state, by Moody's, Fitch, and Standard & Poor's. In addition, 11 counties/county equivalents in Virginia have a Aaa bond rating, more than any other state as reaffirmed by Moody's in September 2014.
|Virginia||U.S. (Median)||South Atlantic (Median)|
|Corporate Income Tax||6.00%||6.50%||6.00%|
|Sales and Use Taxes:|
|State Tax||4.30% or 5.00%||5.75%||5.75%|
|State and Average Local Tax (combined)||5.30% or 6.00%||6.80%||6.07%|