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Loudoun County, VA Local Taxes & Fees: Business Tax Classification (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Governing chapter
County Code § 840.14
Threshold for tax
Gross receipts over $200,000/yr
Amusements rate
$0.21 per $100 gross receipts
Business services rate
$0.17 per $100 gross receipts
Contractors rate
$0.13 per $100 gross receipts
Flat license fee
$30/yr if under $200,000
Enforcing office
Commissioner of the Revenue

Summary

Loudoun County sorts every business into a licensed category under Chapter 840 of the County Code, and the rate you owe depends entirely on which bucket you land in. Amusements pay 21 cents per $100 of gross receipts, business services 17 cents, contractors 13 cents, and hotels or motels 23 cents.

These county ordinances apply to unincorporated areas of Loudoun County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

840.14 CALCULATION OF TAX. In addition to the fee specified in section 840.13(c), any person engaged in a business, profession, trade or occupation with gross receipts of more than two hundred thousand dollars ($200,000.00) shall be assessed and required to pay annually a license tax on gross receipts or a flat tax at the rate established for the particular enterprise as set forth below: (a) Amusements... shall pay for the privilege an annual license tax of twenty-one cents ($0.21) per one hundred dollars ($100.00) of gross receipts. (c) Business Services... shall pay for the privilege an annual license tax of seventeen cents ($0.17) per one hundred dollars ($100.00) of gross receipts... (e) Contractors and Contracting... shall pay for the privilege an annual license tax of thirteen cents ($0.13) per one hundred dollars ($100.00) of gross receipts.

Full Breakdown

14 (Calculation of Tax) and applies a different gross-receipts rate to each class once annual gross receipts exceed $200,000. Amusements (any entertainment, show, event or sport charging admission) pay 21 cents per $100 of gross receipts. 205-18 pay only 3 cents per $100 of the federal funds received. Contractors and speculative builders pay 13 cents per $100. Personal service businesses and professional, financial and real estate services each pay 23 cents per $100. Hotels and motels renting more than seven bedrooms to transients pay 23 cents per $100.

Flat-fee classes exist alongside the percentage classes: bondsmen pay $50 (not prorated), fortunetellers pay $500 (not prorated or assignable), and amusement-machine operators pay $150 for fewer than ten coin-operated machines or $200 for ten or more, tracked by an address list filed with the Commissioner. 14 applies instead. 14(e). 13(b)(2).

Violations & Fines

Failing to file the annual gross-receipts declaration with the Commissioner of the Revenue, or misclassifying a business to claim a lower rate class, exposes the business to back assessment of the correct classification's tax plus the license fee. Bail bondsmen who fail to hold the required Department of Criminal Justice Services license face immediate revocation of their county business license and may be referred for penalties under § 840.12. Coin-operated machine operators who fail to furnish the required address list of machines to the Commissioner of the Revenue can be assessed the license tax without benefit of the small-operator exemptions in § 840.14(d)(3).

Frequently Asked Questions

How does Loudoun County decide which tax rate my business pays?
The Commissioner of the Revenue places every business into one of the classes defined in § 840.14, such as amusements, business services, contractors, personal services, or hotels/motels, each carrying its own per-$100-of-gross-receipts rate, and applies that rate once your gross receipts exceed $200,000 in a year.
Do I owe the license tax if my business is new or small?
New businesses locating in the County are exempt from the license tax (not the $30 fee) for their first calendar year under § 840.13(b)(1), and any business with $200,000 or less in annual gross receipts is exempt from the tax entirely under § 840.13(b)(2), though all businesses must still file the annual declaration.
What do bondsmen and fortunetellers pay instead of a gross-receipts rate?
Some occupations pay flat, non-prorated license taxes instead of a percentage rate: bondsmen pay $50 per year and fortunetellers pay $500 per year under § 840.14(b) and (f), and neither tax is reduced for partial-year operation or transferable to another owner.

Sources & Official References

Other rules in Loudoun County

All Loudoun County rules

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