Virginia Business License in 2026: BPOL Tax by Locality, DPOR Licenses and State Registration

If you are opening a business in Virginia and searching for "the" Virginia business license, you will not find one. Virginia has no general statewide license. What most businesses need instead is a local business license from the city, county or town where they operate, which comes with a local tax on gross receipts called BPOL. Some occupations also need a state license from DPOR, and LLCs and corporations register with the State Corporation Commission. This guide explains how BPOL works, shows the published fees and rates for Fairfax County, Richmond, Virginia Beach and Arlington with worked examples, and covers state licenses and sales tax. Figures were checked with each locality in October 2026.

Quick answer

Virginia has no statewide business license. Most businesses get a local business license from their city, county or town and pay the BPOL tax: a flat fee of up to $50 below a gross-receipts threshold, then a rate per $100 of receipts that state law caps by business type. Renewals are generally due March 1.

• State caps: 16 cents per $100 contracting, 20 cents per $100 retail, 36 cents per $100 services, 58 cents per $100 professional

• Richmond charges a flat $30 up to $500,000 of receipts from 2026

• Contractors need a DPOR license once a job exceeds $1,000

• Retailers also register with Virginia Tax; the general sales tax rate is 5.3%, or 6% in three regions

How business licensing works in Virginia

Virginia splits the job three ways. Your locality licenses the right to do business there and taxes it through BPOL, which stands for Business, Professional and Occupational License. State regulatory boards license people and firms in regulated trades and professions. And the State Corporation Commission (SCC) registers legal entities. None of these replaces the others, so a plumbing LLC in Chesapeake needs all three: SCC registration for the LLC, a DPOR contractor license and master tradesman license, and a Chesapeake business license.

BPOL is a local tax, but the General Assembly sets the framework. Under the Code of Virginia, a county, city or town may charge a license fee and levy license taxes on businesses, trades and professions, subject to statewide limits. The Department of Taxation's BPOL regulations summarize the two key limits: a cap on the flat fee, which depends on population, and a gross-receipts threshold below which no percentage tax can be charged. Above the threshold, the tax is a rate per $100 of gross receipts, again capped by category.

Because each locality writes its own ordinance within those limits, two businesses doing identical work ten miles apart can pay very different amounts. Some localities, especially smaller counties, do not levy BPOL at all and may simply require registration. That is why the first question is always where your business is located, not what the state charges.

Towns add another wrinkle. A business in an incorporated town is usually licensed by the town rather than the surrounding county. Fairfax County, for example, says businesses located in the cities of Fairfax, Falls Church and Alexandria and the towns of Clifton, Herndon and Vienna are not subject to county BPOL but must contact those jurisdictions instead.

BPOL fees, thresholds and state rate caps

State law sets the ceiling; your locality sets the actual number. The flat license fee can be no more than $50 in a locality with more than 25,000 residents and $30 in a smaller one. Localities with more than 50,000 residents cannot impose the percentage tax on a business with gross receipts under $100,000, and those with 25,000 to 50,000 residents cannot impose it under $50,000. Smaller localities have no dollar threshold. A locality may set a higher threshold, as Richmond and Virginia Beach do.

Two exceptions matter in practice. First, a locality that had a higher rate on January 1, 1978 may keep it, though it cannot raise it. That is why you will see a few published rates above the caps, such as Richmond's contractor rate. Second, wholesale merchants are taxed on purchases rather than sales, and a locality that had a higher wholesale rate in 1964 can keep it. Several other categories, including public service companies, itinerant merchants, peddlers and direct sellers, follow their own statutory rules.

The law also says no percentage tax can be charged on receipts covered by the flat fee. Localities apply that by choosing either a fee or a tax for each business, based on receipts. Arlington's guidance, for example, makes clear that above $100,000 you multiply total gross receipts by the rate and do not also pay the flat fee.

BPOL by locality: Fairfax, Richmond, Virginia Beach and Arlington

The four localities people search for most show how widely the rules differ. All four publish their schedules online, and all four use March 1 as the annual renewal date.

Published BPOL fees and selected rates (2026)

Locality	Flat fee tiers	Rate applies above	Professional	Retail	Contractor	Services
Fairfax County	$0 to $10,000; $30 to $50,000; $50 to $100,000	$100,000	$0.31 per $100	$0.17 per $100	$0.11 per $100	$0.19 per $100
City of Richmond	$0 to $5,000; $30 to $500,000	$500,000	$0.58 per $100	$0.20 per $100	$0.19 per $100	$0.36 per $100
Virginia Beach	$25 to $25,000; $40 to $100,000; $50 to $200,000	$200,000	$0.58 per $100	$0.20 per $100	$0.16 per $100	$0.36 per $100
Arlington County	$0 to $10,000; $30 to $50,000; $50 to $100,000	$100,000	$0.36 per $100	$0.20 per $100	$0.16 per $100	$0.35 per $100

Fairfax County

Flat fee tiers

$0 to $10,000; $30 to $50,000; $50 to $100,000

Rate applies above

$100,000

Professional

$0.31 per $100

Retail

$0.17 per $100

Contractor

$0.11 per $100

Services

$0.19 per $100

City of Richmond

Flat fee tiers

$0 to $5,000; $30 to $500,000

Rate applies above

$500,000

Professional

$0.58 per $100

Retail

$0.20 per $100

Contractor

$0.19 per $100

Services

$0.36 per $100

Virginia Beach

Flat fee tiers

$25 to $25,000; $40 to $100,000; $50 to $200,000

Rate applies above

$200,000

Professional

$0.58 per $100

Retail

$0.20 per $100

Contractor

$0.16 per $100

Services

$0.36 per $100

Arlington County

Flat fee tiers

$0 to $10,000; $30 to $50,000; $50 to $100,000

Rate applies above

$100,000

Professional

$0.36 per $100

Retail

$0.20 per $100

Contractor

$0.16 per $100

Services

$0.35 per $100

Fairfax County

Fairfax County's Department of Tax Administration says every business owner in the county, including home-based businesses, is subject to BPOL. You register within 75 days of starting operations, and a 10% penalty applies if you miss that window or file a renewal after March 1. Businesses with $10,000 or less of gross receipts pay nothing and do not need to file for a license. Above $100,000 the rate depends on classification: the county lists $0.31 per $100 for professional occupations, consultants and real estate brokers, $0.17 per $100 for retail merchants, $0.11 per $100 for contractors and $0.19 per $100 for business, personal and repair services. New businesses estimate receipts for the first partial year and the first full year, and the county adjusts to actual figures afterward.

City of Richmond

Richmond made the biggest recent change. Under ordinance 2024-187, the city raised its threshold from $250,000 to $500,000, effective January 1, 2026, for revenues in calendar year 2026. A business with $5,001 to $500,000 of receipts now pays a flat $30, plus any flat-rate fees for activities such as selling alcohol. The city said nearly 70 percent of its businesses fall under the new threshold. New businesses must obtain a license within 30 days of opening, and late filing or payment brings a penalty of 10% or $10, whichever is greater, plus interest. Applications and renewals go through the RVA Business Portal.

Virginia Beach

Virginia Beach uses three fee tiers before the rate applies: $25, $40 and $50. Only receipts above $200,000 are charged at the category rate. The license year runs January 1 to December 31, and renewals are accepted from January 1 through March 1. The Commissioner of the Revenue's revenue agents interview applicants to set the classification, which is worth preparing for if your business straddles categories.

Arlington County

Arlington has the same fee tiers as Fairfax but different rates, published by section code: $0.36 per $100 for professional and specialized services, $0.20 per $100 for retail and restaurants, $0.16 per $100 for contractors and $0.35 per $100 for personal, business and repair services. Arlington no longer mails paper forms; you register and file in its CAPP portal, within 75 days of starting operations for a new business.

Worked BPOL examples

These examples use each locality's published rates for 2026 and the prior year's gross receipts, which is how renewals are calculated after the first two years.

A freelance management consultant in Reston, which is in unincorporated Fairfax County, billed $250,000 last year. That is above the $100,000 threshold, so the professional rate of $0.31 per $100 applies: $250,000 ÷ 100 × $0.31 = $775. If she had billed $40,000, she would pay the $30 flat fee instead.

A gift shop in Richmond's Carytown had $420,000 in sales. Before 2026 it would have paid the retail rate on all of it; under the new threshold it pays the flat $30. A larger Richmond store with $700,000 of sales pays $700,000 ÷ 100 × $0.20 = $1,400.

A roofing contractor in Virginia Beach did $300,000 of work. Above $200,000, the contractor rate of $0.16 per $100 applies: $300,000 ÷ 100 × $0.16 = $480. The same contractor also needs a DPOR Class B or Class A license, depending on job sizes.

An Arlington marketing agency with $180,000 of receipts falls in the specialized services class at $0.36 per $100: $180,000 ÷ 100 × $0.36 = $648. Moved across the line into Fairfax County, the same agency would pay $180,000 ÷ 100 × $0.31 = $558.

Add license fees and BPOL to your first-year budget

Registration, Legal & LicencesEquipment & Fit-outOpening InventoryLaunch MarketingMonthly Operating CostRunway Needed

One-Time Costs₹7,00,000.00

Working Capital Reserve₹10,80,000.00

Recommended Buffer (10%)₹1,78,000.00

Total Capital Required₹19,58,000.00

Open the full Startup Cost Calculator (PDF, save, compare)

How to get a Virginia business license

The process is the same in most localities, with differences in portals and deadlines. Start with your legal structure and state registrations, then go to the local Commissioner of the Revenue or tax department.

Getting licensed in Virginia

1. 1

   Register your entity with the SCC

   An LLC files articles of organization for $100 and pays a $50 annual registration fee each year after. Sole proprietors using a trade name file an assumed name certificate.

   LLC registration guide
2. 2

   Get an EIN and register with Virginia Tax

   Register for sales and use tax if you sell taxable goods, and for withholding if you have employees.

   EIN guide
3. 3

   Get any state occupational license

   Check whether DPOR or another board regulates your work, such as contracting, cosmetology or real estate. Apply before you open.

4. 4

   Confirm zoning and your licensing locality

   Check whether the address is in a city, county or town, and get any home occupation or zoning approval first.

5. 5

   Apply for the local business license

   File with the Commissioner of the Revenue or tax department within the local deadline, such as 30 days in Richmond or 75 days in Fairfax County, using estimated receipts.

6. 6

   Renew every year by March 1

   Report the prior year's gross receipts and pay the fee or tax. Late filing usually adds a 10% penalty plus interest.

Expect to provide your legal name and any trade name, the business address, your SCC entity ID and EIN, a description of what you do so the office can classify you, an estimate of gross receipts, and copies of any state licenses. Contractors in Richmond must show compliance with workers' compensation requirements before the license is issued.

Home-based businesses and first-year estimates

Working from a spare bedroom does not take you outside BPOL. Fairfax County says home-based businesses are subject to the tax like any other, and most localities treat them the same way. What usually differs is zoning: many counties require a home occupation permit or registration that limits customer visits, employees, signage and parking. Get that approval first, because the license office will often check it, and a business license on its own does not mean zoning has approved the use.

New businesses have no prior-year receipts, so localities use estimates. In Fairfax County you estimate receipts for the first partial year and for the first full calendar year, and the county adjusts each estimate to actual figures when the year closes. If you estimated $160,000 and actually took in $135,000, the overpayment on the $25,000 difference is credited to the next year or refunded if you close. Estimate honestly: a low guess is corrected later with the difference due, and a high guess ties up cash you could use while you wait for the credit.

If you close or move out of a locality, tell the office. Fairfax County says a business that stops operating may get a refund for the unused part of the tax it already paid.

DPOR and other state professional licenses

The Department of Professional and Occupational Regulation (DPOR) licenses dozens of occupations, including contractors and tradesmen, cosmetologists and barbers, real estate agents and brokers, architects and engineers, and many more. Healthcare professions sit under the Department of Health Professions instead, and alcohol sales need a license from Virginia ABC. A local business license never substitutes for these.

Contracting is the most common trigger. Virginia law defines three contractor classes. Class C covers a single contract over $1,000 but under $30,000, with less than $250,000 of work in 12 months. Class B covers single contracts from $30,000 up to $150,000, or $250,000 to under $1 million a year. Class A applies at $150,000 per contract or $1 million a year. Every new contractor license requires eight hours of pre-license education, and Class A and B applicants also face exams and financial requirements. Electrical, plumbing and HVAC contractors need a master tradesman on the license.

DPOR also introduced a cost change this year. From July 1, 2026, certain license fees include a separate technology fee of $7.25 a year, under 2026 House Bill 30, which runs through June 30, 2030. Check the fee schedule for your board before you budget.

Before you apply for a Virginia business license

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• SCC entity ID (or assumed name certificate for a sole proprietor)
• EIN and Virginia Tax account number
• Business address confirmed as city, county or town
• Zoning or home occupation approval
• DPOR or other state license number, if regulated
• Estimate of gross receipts for the first year
• Workers' compensation proof (contractors with employees)

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Sales tax and other state registrations

If you sell taxable goods, you register with Virginia Tax as a dealer and collect sales tax. The rate depends on where the sale happens. It is 5.3% in most of Virginia, 6% in Northern Virginia, Hampton Roads and Central Virginia (which includes Richmond), 6.3% in a group of Southside localities, and 7% in James City County, Williamsburg and York County. Groceries and personal hygiene items are taxed at 1% statewide. Returns are filed monthly or quarterly even when no tax is due, and Virginia Tax charges a 6% monthly penalty on late returns, up to 30%, with a $10 minimum.

Out-of-state sellers must register once they exceed more than $100,000 in sales or 200 or more transactions into Virginia in a year. Sellers who sell only through a marketplace facilitator such as a large online platform do not need to register for those sales, because the facilitator collects the tax. Employers also register for state withholding and unemployment insurance. Businesses with tangible property usually file a business property return with the locality, often by March 1 or May 1.

Use our sales tax calculator to check what to charge at a given rate.

Virginia sales tax rates (2026)

5.3%

Most of Virginia

6%

Northern Virginia, Hampton Roads, Central Virginia

7%

James City County, Williamsburg, York County

1%

Groceries and hygiene items, statewide

Common mistakes and how to fix them

The first mistake is waiting for a state license that does not exist. People search for a Virginia business license, find nothing at state level, and assume they need nothing. Contact your Commissioner of the Revenue before you open.

The second is applying to the wrong jurisdiction. A Vienna or Herndon address is a town, not just Fairfax County, and an Alexandria mailing address may be in the city or in Fairfax County. Check the exact location before you file, or you may end up licensed by one office and assessed by another.

The third is misclassification. Your rate depends on the category the office assigns, and the gap between, say, Fairfax's $0.19 per $100 for business services and $0.31 per $100 for professional occupations is large. Describe your work accurately and ask how you were classified.

The fourth is forgetting deductions and exclusions. Localities exclude certain receipts, such as amounts you collect as sales tax and some receipts attributable to other states. Fairfax County uses a BPOL exclusion worksheet for this, and missing it means paying tax on money that is not yours.

The fifth is missing March 1. Late filing commonly triggers a 10% penalty plus interest. Put the date in your calendar and file even when receipts are low; Arlington says to file even with zero receipts to avoid an estimated assessment.

A note for readers searching for West Virginia: it is a separate state with a different system, including a state business registration certificate from the West Virginia State Tax Department. Nothing in this guide applies there.

Official Virginia links

• Code of Virginia §58.1-3706 — BPOL rate limits
• Virginia Tax — BPOL regulation 23VAC10-500-100
• Fairfax County — Understanding BPOL
• City of Richmond — BPOL tax
• Virginia Beach — Tax rates and deadlines
• Arlington County — Business License Tax
• DPOR — Board for Contractors
• Virginia Tax — Sales and use tax

What to do next

Register your entity with our LLC registration guide, check the name first with the LLC name checker, and get an EIN. If you will trade under a different name, read the DBA guide. Then confirm your locality, apply for the local license within its deadline, and diary March 1. For how licensing works nationally, see our business licenses overview.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Does Virginia have a state business license?

No. Virginia has no general statewide business license. Instead, most cities, counties and towns require a local business license and levy the Business, Professional and Occupational License (BPOL) tax. Separately, some occupations need a state license from DPOR or another board, and entities register with the State Corporation Commission.

How much is a business license in Virginia?

It depends on your locality and gross receipts. State law caps the license fee at $50 in localities over 25,000 people and $30 in smaller ones. Above the threshold, a percentage of gross receipts applies, capped by business class: for example 20 cents per $100 for retail and 58 cents per $100 for professional services.

When is the Virginia BPOL tax due?

Renewals are generally due by March 1 each year, based on the previous year's gross receipts; Richmond, Fairfax, Arlington and Virginia Beach all use that date. New businesses apply within a set period of opening, such as 75 days in Fairfax County and 30 days in Richmond, using an estimate of receipts.

How much is a business license in Virginia Beach?

Virginia Beach charges $25 for gross receipts up to $25,000, $40 up to $100,000 and $50 up to $200,000. Above $200,000, a rate applies by business type, such as $0.20 per $100 for retail and $0.58 per $100 for professional services. Renewals run January 1 to March 1.

Do I need a business license to work from home in Virginia?

Usually yes. Fairfax County says all business owners, including home-based ones, are subject to BPOL, though businesses with $10,000 or less in receipts there pay nothing. Many localities also require a home occupation zoning approval, and a business license does not mean zoning has approved your use.

Is a Virginia contractor license the same as a business license?

No. Contractors need a DPOR Board for Contractors license once a single job exceeds $1,000, plus a local business license from the city or county. Richmond states that its business license is not a substitute for the state contractor license, and it requires workers' compensation compliance before issuing one to contractors.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Code of Virginia §58.1-3706 — Limitation on rate of license taxes — Virginia General Assembly (LIS) · accessed 9 October 2026
2. 2.Code of Virginia §58.1-3703 — Local license taxes and fees — Virginia General Assembly (LIS) · accessed 9 October 2026
3. 3.23VAC10-500-100 — Rates and fees (BPOL regulations) — Virginia Department of Taxation · accessed 9 October 2026
4. 4.Understanding BPOL Tax and BPOL Rate Schedule — Fairfax County Department of Tax Administration · accessed 9 October 2026
5. 5.Business, Professional, and Occupational License (BPOL) Tax — City of Richmond Department of Finance · accessed 9 October 2026
6. 6.City increases BPOL threshold (press release, July 29, 2025) — City of Richmond · accessed 9 October 2026
7. 7.Tax Rates, Important Dates & Deadlines — Virginia Beach Commissioner of the Revenue · accessed 9 October 2026
8. 8.Business License Tax and business tax rates by section code — Arlington County · accessed 9 October 2026
9. 9.Sales and Use Tax — Virginia Department of Taxation · accessed 9 October 2026
10. 10.Sales tax requirements for remote sellers and marketplace facilitators — Virginia Department of Taxation · accessed 9 October 2026
11. 11.Board for Contractors and Code of Virginia §54.1-1100 — Virginia Department of Professional and Occupational Regulation · accessed 9 October 2026
12. 12.Code of Virginia §§13.1-1005 and 13.1-1062 (LLC fees) — Virginia General Assembly (LIS) · accessed 9 October 2026