The Lynchburg Region offers businesses a thriving pro-business, right-to-work environment with ample building sites, generous financial incentives, and government-assisted programs. Forbes has included the Lynchburg MSA on lists of Best Small Places for Businesses and Careers (95), Cost of Doing Business (50), Education (80), and Job Growth (164).
Our pro-business assets include:
- Stable, low-tax costs for corporations and individuals, highlighted by a low 6% corporate income tax.
- Minimized payroll costs with low worker’s compensation rates and low unemployment tax.
- Protection of “right-to-work” employment practices.
- Established Enterprise, Opportunity, and Technology Zones.
- Recruitment and training programs to help businesses become operational and maintain a competitive advantage.
Corporate Income Tax
Virginia’s corporate income tax has not been raised since 1972. At 6 percent, our rate is one of the lowest in the country. In Virginia, items taxed at the state level are not taxed at the local level, with the exception of the sales and use tax levied by both state and local governments. The combined state and local sales tax is either 5.3 or 6 percent depending upon the locality.
- Tax rate of 6%.
- Tax credits for job creation and investment in economically stressed areas.
Sales and Use Tax
- The total tax is 5.3 percent (4.3 percent state tax and 1 percent local tax).
- A seller is subject to a sales tax on gross receipts derived from retail sales or leases of taxable tangible personal property.
- Manufacturers do not pay tax on purchases used for production; distributors do not pay tax on items purchased for resale.
- In the Lynchburg Region real estate tax ranges from .52 per $100 assessed value to $1.11 assessed value.
- The region boasts some of the nation’s lowest machine & tool tax rates. For example, in Amherst County the machinery and tools tax is 25% of $2.00 per $100 of original cost.
- Most localities in the Lynchburg Region levy a business personal property tax.
Due to the low cost of living in the Lynchburg Region (12% below the national average), wage rate are favorable for employers. The average annual wage is the region is currently $48,203.
The Lynchburg Region has long been a model for collaborative organizations, local governments, and partnerships. Our approach to economic development makes relocation or expansion seamless. Our team brings all partners to the table to address opportunities and challenges together. We will work collaboratively to assist with location needs, workforce, incentives, and more to make relocating to the Lynchburg Region easy for the client.