Local businesses and residents enjoy the benefits of Virginia’s stable tax structure and tax rates, cost of living and other business costs that in many cases are far below the national average.
Virginia has low utility rates
, workforce and building costs, contributing to the region’s attractiveness from a cost standpoint in comparison to other locations.
- Building costs in the MSA are just 87.1 percent of the national average
- 2nd lowest average workers’ compensation costs in the nation with average of $0.61 per $100 payroll is more than 40 percent lower than the national average of $1.07
- 4th lowest unemployment insurance tax rate in the nation (59 percent lower than average).
- Cost of living in the region’s communities, based on the local prices of food and other common goods, is 90.8, compared to the national index of 100
- Right to Work: Employees do not automatically become a union member as a condition of hiring, heavily reducing union membership and collective bargaining by employees
- Compare Virginia and the Richmond Metro to other states and metro areas
Virginia’s tax climate and cost structures has earned it a consistent place near the top of “best states for business” rankings. This consistent recognition comes from the consistent tax structures. For instance, the 6 percent corporate income tax rate has not increased in more than 40 years.
Sales & Use Tax
||South Atlantic (Median)
|Avg. State + Local
|Corporate income tax
|Personal Income Tax
||3% + $60
||5% + $120
||5.75% + $720
For community-specific tax rates, download the Local Taxes Table
or view an individual tax profile:
Sources: Communities' websites and Virginia Economic Development Partnership, 2023 data