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

Every person engaged in a business, profession, trade, occupation or calling with a taxable situs in Fairfax County must apply for a license from the Department of Tax Administration, per Code § 4-7.2-2, unless gross receipts for the location are $10,000 or less, in which case no license application is required at all under § 4-7.2-3(G). A separate license is required for each definite place of business, though a taxpayer running multiple businesses at one location can elect a single license taxed at the highest applicable rate (§ 4-7.2-4).

For a business just starting up, § 4-7.2-5(a) requires the owner to estimate gross receipts or purchases for the balance of the license year, with the Director of Tax Administration adjusting the estimate against actual receipts the following year, crediting overpayments or adding underpayments to the next bill. For an existing business renewing its license, § 4-7.2-5(b) computes the tax either from the flat license fee table in § 4-7.2-7 or by multiplying the prior calendar year's gross receipts or purchases by the tax rate assigned to that business's specific classification, whether amusements, contracting, retail merchant, wholesale merchant, professional services, repair services or one of the other rate schedules set out beginning at § 4-7.2-20.

Applications for license tax year 1998 forward are due March 1 or within 75 days of a new business opening. Taxpayers must keep records sufficient for the Director to verify the tax and must open their books to the Director's inspection under § 4-7.2-12; licenses may be transferred only on written notice to the Director within 75 days under § 4-7.2-13.