We are a Naperville, Illinois CPA firm, and we serve clients in Richmond, Henrico and Chesterfield remotely; we have no office in Virginia. Richmond's main tax puzzle is that three neighboring governments run three different calendars. A business license threshold and a real estate appeal deadline can change within a few miles. This page lines them up, then covers Virginia's income tax and how Richmond relates to Northern Virginia.
Virginia income tax and the pass-through entity tax
For tax year 2025, Virginia taxes income at 2% up to $3,000, 3% to $5,000, 5% to $17,000 and 5.75% above that. The return was due May 1, 2026, and the standard deduction was $8,750 for single filers and $17,500 for joint filers. The 2026 session raises those to $9,200 and $18,400 for tax years beginning in 2027. Virginia also moved to a fixed conformity date of December 31, 2025, and cut the subtraction for disallowed business interest from 50% to 20% for 2025 and later.
The pass-through entity tax matters to owners of S corporations, partnerships and LLCs. An electing entity pays Virginia tax itself on Form 502PTET, which must be filed electronically. Eligible owners are natural persons and estates or trusts subject to Virginia tax, and they claim a refundable credit for tax paid for them. The return is due April 15 for a calendar-year entity, with an automatic six-month filing extension to October 15 that does not extend the payment date. Since tax year 2023, entities must make estimated payments. See our Virginia page and our guide to S corporation taxes.
Virginia's central region, including Chesterfield, Henrico and Richmond, has a 6% sales tax rate; most of the state is 5.3%. A new state tax of $0.011 per kilowatt-hour on data center electricity applies from July 1, 2026 until before July 1, 2028, collected by the State Corporation Commission.
Local taxes: three calendars
Business license tax (BPOL). The three governments differ as follows.
| Locality | License tax starts | Professional services | Renewal |
|---|---|---|---|
| Henrico | $1,000,000 of gross receipts (file anyway below that) | $0.20 per $100 | before March 1 |
| Chesterfield | $550,000 base-year receipts | $0.20 per $100 | calendar-year license |
| City of Richmond | $30 for $5,001 to $500,000 | $0.58 per $100 | March 1 |
Henrico says a license usually covers work across the state, and that the county has no merchants' capital tax. Richmond requires a zoning compliance certificate first, and its page says the filing forms are in its online business portal, with no paper forms for manual filing. Late filing in Henrico or Richmond brings a 10% penalty. Chesterfield's schedule has computer services at $0.03 per $100 and a business personal property rate of $0.24 for data centers against $3.25 for furniture and equipment.
Real estate appeals. The clocks differ more than the rates.
| Locality | Value date | Notices | First appeal step |
|---|---|---|---|
| Chesterfield | January 1 | mailed by February 1 | file by March 15 |
| Henrico | January 1 | from February | file by April 1 |
| City of Richmond | July 1 | on or about July 1 | office review within 30 days |
Chesterfield's 2026 rate is $0.89 per $100 of assessed value. Henrico bills half on June 5 and half on December 5, and its Real Estate Advantage Program for owners 65 or older or disabled also closes April 1. In Richmond, a Board of Equalization application is due November 30, and a direct appeal to circuit court must be made within three years of the assessment year.
The Northern Virginia connection
Northern Virginia localities are in the same 6% sales tax bracket as Richmond, and Virginia's income tax and pass-through entity rules apply statewide, but license taxes and assessments are set locally, as the three Richmond-area examples show. Commuters between Northern Virginia and DC or Maryland have a different issue: Virginia's reciprocity list covers the District of Columbia, Kentucky, Maryland, Pennsylvania and West Virginia, and exempt workers give their employer Form VA-4. Our Washington DC metro page covers those rules in detail.
The Indian-American community and US-India tax in Richmond
The Census Bureau counts 22,475 Asian Indian residents in the Richmond metro area (1.7%), including 16,149 in Henrico, 3,532 in Chesterfield (0.9%) and 1,637 in the City of Richmond (0.7%). The Embassy of India in Washington lists Virginia in its consular jurisdiction, effective July 15, 2025, and says VFS Global handles its miscellaneous services from August 1, 2025. Common questions:
- Part-year returns. Virginia uses Form 760PY for part-year residents and Form 763 for nonresidents; see residency rules.
- Selling in India. See selling property in India.
- Contractors. Richmond says a non-city contractor doing more than $25,000 of work in a calendar year must report the receipts and get a city license; see our business tax preparation service.
How we can help
From Naperville we prepare federal and Virginia returns, evaluate the pass-through entity election, keep books and run payroll, and handle IRS and state notices. We work by secure upload, phone and video. For a Board of Equalization hearing, a local licensing matter or anything that needs a Virginia license or local professional, we will say so. This is general information, not personal advice.
Frequently asked questions
When is the Virginia individual return due?
For tax year 2025, it was due May 1, 2026.
What is Form 502PTET?
It is the return for Virginia's elective pass-through entity tax, filed electronically and due April 15 for calendar-year entities.
How long do I have to appeal a Henrico assessment?
By law, appeals must be filed no later than April 1 of the current year, according to Henrico.
Is there a business license tax if my gross receipts are small?
It depends on the locality. Henrico normally charges none under $1,000,000 but requires you to file.
Official sources
- Virginia Tax: pass-through entities, Form 502PTET
- Virginia Tax: 2026 legislative summary
- Henrico County: business license
- Chesterfield County: business taxes, rates and appeals
- City of Richmond: BPOL tax
- City of Richmond: real estate assessment appeal process
- U.S. Census Bureau: ACS 2020-2024 5-year, Table B02018 (Henrico, Chesterfield, Richmond)
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.