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

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

Key Facts

Contractors
0.16% of gross receipts
Retail merchants
0.20% of gross sales
Wholesale merchants
0.12% of purchases
Professional services
0.58% of gross receipts
Filing deadline
March 1 annually

Summary

Virginia Beach's BPOL license tax is set by business classification: contractors pay 0.16%, retailers 0.20%, wholesalers 0.12% of purchases, and professionals 0.58% of gross receipts once revenue tops $200,000.

Businesses with gross receipts during the preceding calendar year of greater than two hundred thousand dollars ($200,000.00) shall pay a license tax on gross receipts. Such license tax shall be calculated by applying the specific percentage rate provided in this chapter for each different classification of business to the amount of a business' gross receipts.

Source: Virginia BPOL Tax StatuteView official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 170 Update 1).

Full Breakdown

Every business, trade or profession must hold a commissioner-of-revenue license under City Code Ch. 18. Gross receipts up to $200,000 pay a flat $25-$50 fee; above that, the tax rate depends on the business's classification: contracting 0.16%, retail merchants 0.20% of sales, wholesale merchants 0.12% of purchases, personal/repair/amusement services 0.36%, and professional services (attorneys, doctors, engineers, accountants) 0.58% of gross receipts. Applications and payment are due by March 1 each year.

Violations & Fines

Operating without the required license is a Class 2 misdemeanor; a second violation within five years is a Class 1 misdemeanor. Conviction does not excuse payment of the tax owed.

Frequently Asked Questions

Do small businesses in Virginia Beach owe the percentage tax?
No: gross receipts up to $200,000 pay only a flat $25-$50 license fee; the classification percentage applies only above $200,000.
Who sets which classification a business falls into?
The Commissioner of the Revenue, based on the actual business activity as defined in City Code § 18-2, not the business's own label.

Sources & Official References

Other rules in Virginia Beach

All Virginia Beach rules

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