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

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

Key Facts

Minimum flat tax
$30.00 under $500,000 receipts
Contractors
$0.19 per $100 gross receipts
Retailers
$0.20 per $100 gross receipts
Financial/real estate/professional
$0.58 per $100 gross receipts
Personal/business services
$0.36 per $100 gross receipts
Wholesalers
$0.22 per $100 purchases
Assessor
Director of Finance

Summary

Richmond's BPOL license tax sorts every business into a classification, contractor, retailer, financial/real estate/professional services, personal and business services, or wholesaler, and charges a different rate per $100 of gross receipts for each.

Except as may be specifically otherwise provided by this article or other law, the annual license tax imposed under this article shall be $30.00 for any person with gross receipts (or purchases for wholesale merchants) of $5,000.00 or more but less than $500,000.00 in a given license year. Any person with gross receipts greater than $500,000.00 will be liable for business license taxes at the applicable rate set forth as follows for the class of enterprise listed or as otherwise provided in this article: (1) For contractors and persons constructing for their own account for sale, $0.19 per $100.00 of gross receipts. (2) For retailers, $0.20 per $100.00 of gross receipts. (3) For financial, real estate and professional services, $0.58 per $100.00 of gross receipts. (4) For repair, personal and business services and all other businesses and occupations not specifically listed or exempted in this article or otherwise by law, $0.36 per $100.00 of gross receipts. (5) For wholesalers, $0.22 per $100.00 of purchases.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Recodification).

Full Breakdown

City Code Sec. 00 in a license year. 00 of purchases. 00 per year), and telephone companies (3 percent of local gross receipts). Sec. ' Sec. 26-869 requires every person with a definite place of business in the City, or who resides in the City with no fixed location, to apply for a license before starting business, due by March 1 for continuing businesses or within 30 days of starting for a receipts-based tax, and Sec. 26-869(e) bars issuing a license until all delinquent City taxes owed by the applicant are paid.

Violations & Fines

An appealable event under Sec. 26-872 includes the Assessor's determination of rate or classification, letting a taxpayer contest which classification a business falls into even absent a new assessment. Sec. 26-869(e) blocks license issuance while delinquent business license, real estate, personal property, meals, transient occupancy, severance or admissions taxes remain unpaid.

Frequently Asked Questions

How does Richmond classify a business for its license tax?
Sec. 26-871 sorts businesses into contractor, retailer, financial/real estate/professional services, personal and business services, or wholesaler categories, each taxed at a different rate per $100 of gross receipts or purchases once the business tops $500,000.00 in a license year.
What is the license tax rate for professional services in Richmond?
Financial, real estate and professional services, defined in Sec. 26-872 to include architects, attorneys, CPAs, dentists, engineers, surveyors and surgeons, pay $0.58 per $100.00 of gross receipts under Sec. 26-871, the highest of the general classification rates.
Can a business dispute the classification the City assigned it?
Yes. Sec. 26-872 defines an 'appealable event' to include the Assessor's determination of rate or classification, so a taxpayer may appeal whether its business properly falls within a City-established subclassification, with or without an accompanying assessment.
Does Richmond require the license tax to be paid before other City taxes?
No new license is issued until delinquent taxes are cleared. Sec. 26-869(e) bars issuing a business license until the applicant has paid all delinquent business license, real estate, personal property, meals, transient occupancy, severance and admissions taxes owed to the City.

Sources & Official References

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