Tax Benefits for Doing Business in Virginia
Real estate and property taxes for localities in the Roanoke Region of Virginia are competitive and offer businesses the opportunity to operate in a low-cost environment.
In Virginia, manufacturers do not pay property taxes on furniture, fixtures, and corporate aircraft. Machinery and tools tax rates apply to production equipment. The state sales tax is 5.3 percent. Virginia’s corporate income tax is one of the lowest in the nation, and at 6 percent, it has not been increased in more than 30 years.
Retail Sales and Use Tax
- Combined state and local sales tax is 5.3 percent (4.3% state + 1% local).
- A seller is subject to a sales tax on gross receipts derived from retail sales or leases of taxable tangible personal property.
Sales Tax Exemptions
- Manufacturers’ purchases used directly in production, including machinery, tools, spare parts, raw materials and industrial fuels
- Items purchased for resale by distributors
- Certified pollution control equipment and facilities
- Custom computer software
- Purchases used directly and exclusively in research and development
- Utilities delivered through lines, pipes, and mains
- Most film, video, and audio production-related purchases
- Charges for Internet access, related communications services, and sales of software via the Internet
Real Estate & Personal Property Taxes by Locality
| Locality | Real Estate | Personal Property | Machinery & Tools |
|---|---|---|---|
| Alleghany County | $0.73 | Years 1+: $0.89 | Years 1+: $0.89 |
| Botetourt County | $0.79 | Year 1: $2.44 | Years 1-5: $0.90 |
| Year 2: $1.90 | Years 6+: $0.76 | ||
| Year 3: $1.36 | |||
| Year 4: $0.81 | |||
| Years 5+: $0.27 | |||
| City of Covington | $0.80 | Years 1+: $3.08 | Years 1+: $0.83 |
| Franklin County | $0.61 | Year 1: $1.23 | Year 1: $0.70 |
| Year 2: $1.11 | Year 2: $0.63 | ||
| Year 3: $0.98 | Year 3: $0.56 | ||
| Year 4: $0.86 | Year 4: $0.49 | ||
| Year 5: $0.74 | Year 5: $0.42 | ||
| Year 6: $0.62 | Year 6: $0.35 | ||
| Years 7+: $0.49 | Years 7+: $0.28 | ||
| Roanoke County | $1.06 | Year 1: $2.04 | Years 1-5: $0.70 |
| Year 2: $1.70 | Years 6-10: $0.56 | ||
| Year 3: $1.36 | Years 11+ : $0.42 | ||
| Year 4: $1.02 | |||
| Years 5+: $0.70 | |||
| City of Roanoke | $1.22 | Year 1: $2.07 | Year 1: $2.07 |
| Year 2: $1.73 | Year 2: $1.73 | ||
| Year 3: $1.38 | Year 3: $1.38 | ||
| Year 4: $1.04 | Year 4: $1.04 | ||
| Years 5+: $0.69 | Years 5+: $0.69 | ||
| City of Salem | $1.20 | Year 1: $2.28 | Year 1: $2.24 |
| Year 2: $1.95 | Year 2: $1.92 | ||
| Year 3: $1.63 | Year 3: $1.60 | ||
| Year 4: $1.30 | Year 4: $1.28 | ||
| Year 5: $0.98 | Year 5: $0.96 | ||
| Years 6+: $0.81 | Years 6+: $0.80 | ||
| Town of Vinton | $1.16 | Year 1: $2.70 | Years 1-5: $0.96 |
| Year 2: $2.25 | Years 6-10: $0.77 | ||
| Year 3: $1.80 | Years 11+ : $0.58 | ||
| Year 4: $1.35 | |||
| Years 5+: $0.90 |
Learn More about the Roanoke Region of Virginia