Hampton Roads and Historic Triangle Business License Guide: Fee Bands, Rates, 6% Versus 7% Sales Tax
Virginia has no statewide business license. The State Corporation Commission (SCC) forms your entity and issues no license. The license most businesses hear about is a local tax, the Business, Professional and Occupational License (BPOL), which each city and county sets under Va. Code 58.1-3700 et seq. This guide compares how the Hampton Roads, Virginia Peninsula and Historic Triangle localities handle it, plus the sales tax rate you charge at the register. For forming the entity itself, see our guide to how to start an LLC in Virginia.
This is informational content, not legal or tax advice. Rates, fee bands and deadlines change, so confirm every figure with the locality before you file. For complex situations, talk to a qualified attorney or CPA.
Which localities this covers
Hampton Roads is a region of cities and counties, not a list of seven major cities. This guide covers the 11 localities the Department of Taxation lists as Hampton Roads: Chesapeake, Franklin city, Hampton, Isle of Wight County, Newport News, Norfolk, Poquoson, Portsmouth, Southampton County, Suffolk and Virginia Beach. It adds the Historic Triangle localities of James City County, Williamsburg and York County, which the Tax Department's Hampton Roads list leaves out even though they share the region. It also covers Gloucester County on the Middle Peninsula. Several localities on the list, including Franklin city and Poquoson, are small, so the region name alone does not tell you the rate or the license rules.
Sales tax: 6%, 6.3% or 7%?
The rate depends on the locality where the sale happens. The statewide base is 5.3 percent (4.3 percent state plus 1.0 percent local). Some localities add a regional tax, and the Historic Triangle adds an extra tax on top. Groceries are taxed at 1 percent statewide.
- 7.0 percent: James City County, Williamsburg and York County. These carry an extra 1.0 percent Historic Triangle tax under Va. Code 58.1-603.2.
- 6.3 percent: Gloucester County and Northampton County.
- 6.0 percent: Chesapeake, Franklin city, Hampton, Isle of Wight County, Newport News, Norfolk, Poquoson, Portsmouth, Southampton County, Suffolk and Virginia Beach. Each is 4.3 percent state, 1.0 percent local and 0.7 percent regional.
- 5.3 percent: everywhere else, including Surry, Mathews, Middlesex, Essex, King and Queen, King William, Lancaster, Northumberland, Richmond County, Westmoreland and Accomack.
Two traps catch people. First, the Tax Department's Hampton Roads list leaves out Williamsburg, James City and York, which charge 7 percent. Second, Franklin city, Poquoson, Isle of Wight and Southampton appear on the 6 percent list even though several are small or rural. On a $100 sale, the difference between 6 percent and 7 percent is one dollar, but it adds up on every invoice. Check the current rate tables at Virginia Tax before you set up your point of sale.
Rules that apply across the region
- The license year is the calendar year.
- Renewal is due March 1 in most of these localities, unless the locality sets a later date, up to May 1.
- A late payment carries a 10 percent penalty.
- A contractor working in another locality owes that locality a license only when business there exceeds $25,000 (Va. Code 58.1-3715).
- Some localities levy no general BPOL license at all (Va. Code 58.1-3704), so confirm that your city or county has one before you assume you owe it.
- A fictitious name (DBA) is filed first with the SCC for $10. It is not filed with the circuit court.
Population floors: when a license cannot be required
The state sets minimum thresholds based on population. A locality with more than 50,000 people cannot require a license for businesses with gross receipts under $100,000. A locality with 25,000 to 50,000 people cannot require one under $50,000. Below 25,000 people, no floor applies. Localities over 50,000 may also waive the license up to $200,000 (confirm the waiver ceiling with your locality). The floor sets a minimum, not a fee, so a locality can still set its own rates above it.
The fee grid: rates per $100 of receipts
Rates are per $100 of gross receipts unless the column says purchases. The state ceiling rates are 0.16 for contracting, 0.20 for retail, 0.58 for professional, 0.36 for services, and 0.05 of purchases for wholesale. Most localities below use those ceilings for the first four categories. Wholesale is measured on purchases, not receipts, and the figures vary widely, so confirm the wholesale rate with the Commissioner of the Revenue before you file.
| Locality | Contracting | Retail | Professional | Services | Wholesale (of purchases) | Flat fee or minimum | Due |
|---|---|---|---|---|---|---|---|
| Virginia Beach | 0.16 | 0.20 | 0.58 | 0.36 | 0.12 | $25, $40 and $50 bands up to $200,000 (verify) | March 1 (verify) |
| Norfolk | 0.16 | 0.20 | 0.58 | 0.36 | 0.15 plus $50 | $50 up to $100,000 | March 1 |
| Chesapeake | Confirm | 0.20 | 0.58 | 0.36 | 0.12 (verify) | $50 per line of business | March 1 |
| Portsmouth | 0.16 | 0.20 | 0.58 | 0.36 | 0.15 | $50 up to $100,000 (verify) | March 1 (verify) |
| Suffolk | 0.16 | 0.20 | 0.58 | 0.36 | 0.09 | $50 minimum | March 1 |
| Hampton | 0.16 | 0.20 | 0.58 | 0.36 | 0.15 | $50 under $100,000 (verify) | March 1 (verify) |
| Newport News | 0.15 | 0.20 | 0.58 | 0.36 | Confirm | $30 up to $50,000 and $50 up to $100,000 | March 1 |
| Williamsburg | 0.16 | 0.20 | 0.58 | 0.36 | 0.05 | $30 minimum | March 1 |
| James City County | 0.16 | 0.20 | 0.58 | 0.36 | Confirm | $0 under $4,000, then $30 and $50 bands | March 1 |
| York County | 0.16 | 0.20 | 0.58 | 0.36 | Confirm | $1, $30 and $50 bands | March 1 |
| Poquoson | 0.16 | 0.20 | 0.58 | 0.36 | Confirm | Confirm | March 1 |
| Gloucester County | 0.10 | 0.10, then 0.20 above $250,000 | Confirm | Confirm | Confirm | $10 and $50 fees (confirm the band) | Confirm |
| Isle of Wight County | Confirm | Confirm | Confirm | Confirm | Confirm | $50 under $50,000 | Confirm |
Virginia Beach is the only locality in the grid with a published floor of $200,000 (verify). Below that receipts level, the license is waived, but you should still confirm the treatment with the city.
Localities without a grid row
These localities either publish no rates or publish rates we could not confirm, so start with the Commissioner of the Revenue.
- Poquoson (population 13,292): rates are at the state ceilings. Contractors based outside the city must be licensed above $25,000 of business there. Report estimated receipts through December 31 and renew by March 1. The Commissioner's office is at 500 City Hall Avenue, 757-868-3020. Business personal property is assessed at 30 percent of cost, with a $4.15 figure (confirm what that figure covers). The meals rate: confirm.
- Franklin city (population 8,478): BPOL rates are not confirmed. The Commissioner of the Revenue is at 207 West Second Avenue, 757-562-8547. Get zoning clearance first (757-562-8501) and file any trade name with the SCC. Sources report the meals tax as both 7 percent and 8 percent, so verify it. Lodging is 8 percent, plus the 6 percent regional sales tax.
- Southampton County (population 18,110): the Commissioner of the Revenue is reachable at 757-653-3015. The license is due March 1, and the rates must be confirmed. The business personal property form is due March 15. Sales tax is 6 percent (regional). Merchants' capital is listed at 0.50 (confirm the basis).
- Surry County (population 6,603): anyone with receipts over $1,000 may be required to hold a license, and the rates are not published. Businesses in Claremont, Dendron and the Town of Surry apply to the town instead. Meals tax is 6 percent, and sales tax is 5.3 percent.
Mobile food and lodging taxes
Mobile food is regulated locally, and the rules vary sharply. Hampton requires a host-site permit, Williamsburg ties food vendors to specific zoning districts, and Newport News divides vendors into districts. Check the zoning and permit rules before you schedule a single event.
Recent changes matter for lodging and events. Chesapeake began a flat $2 room tax on July 1, 2025. Williamsburg's meals tax is 6.5 percent, and its room tax is 7 percent plus $2, with a 10 percent admissions tax, effective February 1, 2026. Confirm both with the city before you set prices.
One term causes confusion. In BPOL law, short-term rental means renting equipment, not renting a room or house to vacation guests. If you host guests, ask the locality which tax applies to your lodging.
State licenses that sit outside BPOL
BPOL is the local license. Some work also needs a state license:
- Contractors: since July 1, 2025, Class C covers contracts over $1,000 to under $30,000, Class B covers $30,000 to under $150,000, and Class A covers $150,000 or more. The Department of Professional and Occupational Regulation (DPOR) issues these.
- Food service: Virginia has no statewide food-handler card, but food establishments must have a Certified Food Protection Manager.
- Child care and adult care: the Department of Education licenses child day centers and family day homes. The Department of Social Services licenses assisted living and adult day care.
Next steps
- Identify the locality where your business is located and where you do business. Each one may have its own license.
- Call that locality's Commissioner of the Revenue and ask for the current BPOL rates, the fee band for your receipts, and the due date.
- Estimate your gross receipts and compare them with the population floor.
- If you operate under a name other than your legal name, file the assumed name with the SCC for $10 at scc.virginia.gov.
- If you sell taxable goods, apply for a sales tax permit through Virginia Tax.
Find your locality page
For detailed rates and filing steps, use the page for your locality: Virginia Beach, Chesapeake, Norfolk, Newport News, Hampton, Portsmouth, Suffolk, Williamsburg, James City County, York County, Gloucester County, Isle of Wight County, the Eastern Shore, and the Northern Neck and Middle Peninsula.
Because local rules change, confirm each figure in this guide with the locality, and consult a qualified attorney or CPA if your situation is complex.