Alexandria Business License: $10,000 and $100,000 Fee Ladder, First-Year Rule and 2027 Financial Rate
If you run a business in Alexandria, the main local license you will deal with is the Business, Professional and Occupational License (BPOL) tax. Virginia has no general statewide business license, and the State Corporation Commission (SCC) forms entities but issues no business license. BPOL is a local license tax under Va. Code 58.1-3700 et seq., administered by the City of Alexandria. What you owe depends on your gross receipts, and the first year follows its own rule. This guide covers the alexandria va business license, the alexandria va bpol fee ladder, deadlines, and the related filings owners most often miss, including the alexandria va business tax, alexandria va business personal property tax and alexandria va short term rental permit.
Alexandria is an independent city with a population of 160,662 (Census Vintage 2025), FIPS code 51510. It is not part of Fairfax County, even though some Alexandria zip codes are shared with the county.
Who has to pay the Alexandria business license tax
Anyone with annual gross receipts over $10,000 must file, and that includes home occupations. Virginia does not require every locality to levy a BPOL tax. Under Va. Code 58.1-3704, a locality may levy no general license at all. Stafford, Rockingham, Bedford County, Washington County, Montgomery County, Louisa and Fluvanna are examples of localities without a general county license. Alexandria does levy one, so the schedule below applies to businesses located in the city.
State law also sets population-based limits on local license taxes. A locality with more than 50,000 people cannot require a license on gross receipts under $100,000. Alexandria publishes its own schedule starting at $10,000, so ask Business Tax to confirm how that limit applies to your receipts before you assume a particular result.
The fee ladder after your first year
After your first year, the Alexandria schedule is based on actual gross receipts for the calendar year:
| Annual gross receipts | Annual BPOL tax |
|---|---|
| $0 to $9,999 | $0 |
| $10,000 to $99,999 | Flat $50 |
| $100,000 and above | Gross receipts times the category rate |
The $50 is a flat amount, not a minimum added to a percentage. Once you reach $100,000, the tax is calculated on your full gross receipts at the rate for your category. For example, $250,000 in financial services receipts at $0.35 per $100 produces a tax of $875.
This schedule does not apply to contractors, wholesalers, renting by owner, amusements, public utilities or regulatory activities. Those activities follow their own rules, so confirm with Business Tax which category your business falls into.
The first-year rule
In your first year, Alexandria uses an estimate of gross receipts from the day you open through December 31. The estimate determines the tax:
| Estimated first-year receipts | First-year BPOL tax |
|---|---|
| Under $100,000 | $0 |
| $100,000 to $1,999,999 | Flat $50 |
| $2,000,000 or more | Estimate times the category rate, adjusted at year end |
Be realistic with your estimate. A business projecting $2,000,000 or more must pay on the estimate and then have it adjusted when the year closes, so an optimistic number can create a mismatch you have to resolve later.
Rates: financial services and the 2027 increase
Financial services currently pay $0.35 per $100 of gross receipts. Under Ordinance 5633, Sec. 9-1-71.1, that rate rises to $0.40 per $100 on January 1, 2027. On $500,000 in receipts, the tax moves from $1,750 at $0.35 to $2,000 at $0.40.
For comparison, Alexandria's own question and answer materials list Fairfax City at $0.40 for financial services and Arlington at $0.36. Each locality sets its own rate, so do not carry one locality's figures over to another.
This guide does not print the full category table. For contractor, retail, professional and other rates, call Business Tax at 703-746-4800 and ask for the current rate sheet.
Deadlines, renewals and penalties
- New business: file and pay on the first day of business.
- Renewals: due March 1 every year.
- Failure to file: a misdemeanor with a fine of $5 to $500 under City Code 9-1-14. After 30 days, a penalty of $10 or 10 percent, whichever is greater, applies.
- Returned check: a $35 fee.
File and pay through the Business Tax Portal at businesstaxportal.alexandriava.gov. The portal handles BPOL filing and payment along with business personal property, meals, lodging and admissions taxes.
Flat-fee regulatory licenses
Some alcohol and beverage businesses pay a flat annual fee instead of the ladder. Alexandria's listed amounts are:
- Distillers: $1,000 or $1,500 (confirm with Business Tax which amount applies to you)
- Wineries: $600
- Breweries: $600
- Bottlers: $360
- Beer wholesalers: $250
- On-premise wine and beer retail: $150
- Off-premise beer: $100
- Mixed beverage licenses by seats follow the state pattern. Confirm the figure with Business Tax and the Virginia Alcoholic Beverage Control Authority (ABC).
Short-term daily rental tax (equipment, not lodging)
This is the most commonly confused rule in the Alexandria BPOL system. In BPOL law, "short-term rental" means equipment rental, not a home rented to visitors. If you rent equipment by the day, the short-term daily rental tax is 1 percent of gross receipts, or 1.5 percent for heavy equipment. It is filed quarterly. You also need a retail merchant's license, with the annual application due by January 31.
None of this applies to residential rentals. For those, see the short-term residential rental permit below.
Alexandria short-term residential rental permit
If you rent a residence for more than 10 days a year, you need an alexandria va short term rental permit. The annual fee is non-refundable:
- $350 if the owner does not live in the unit
- $100 if the owner occupies the unit
Operators must name a registered local agent, and the city publishes a Good Neighbor Guide for hosts. The city expected processing to be complete by summer 2026, so verify the current status with Business Tax before you apply. For the statewide framework and how each locality handles rentals, read Virginia short-term rental rules by locality.
Business personal property tax
The alexandria va business personal property tax is separate from BPOL. Key dates:
- Return due: May 1
- Bills: issued in mid-August, due October 5
- Tax year 2025 rates: $5.33 per $100 of business personal property, and $4.50 per $100 for machinery and tools
Real estate, sales tax and other taxes
- Real estate: due June 15 and November 15. Commercial real estate is assessed at 100 percent. The Potomac Yard district rate is 0.200, but confirm the unit and current year with Business Tax.
- Sales tax: 6.0 percent in Alexandria, split as 4.3 percent state, 1.0 percent local and 0.7 percent regional. Confirm current details at Virginia Tax's sales and use tax page.
- Meals, lodging and admissions: check the current rates with Business Tax.
Zip codes and where your business is located
Some zip codes sit entirely inside the city, and others are shared with neighboring jurisdictions:
- Entirely in the city: 22301, 22305 and 22314
- Shared with Fairfax County: 22302, 22304, 22311 and 22312
- Shared with Arlington: 22206
A zip code does not settle which locality taxes you. If your zip code is shared, confirm your business address with Business Tax before you file.
State basics to handle first
- Virginia has no general state business license. The SCC issues none.
- If you operate under a name other than your legal name, an assumed name (DBA) is filed with the SCC for $10, not with the circuit court. Filing details are at scc.virginia.gov/businesses.
- Regulated trades and professions are licensed by state boards, such as DPOR, the Department of Health Professions, VDACS and ABC. Those licenses are separate from the city BPOL tax.
- If you still need to form your entity, read how to start an LLC in Virginia.
Business Tax contact information
- Office: Finance Department, Business Tax, 301 King Street, Room 1700, Alexandria, VA
- Second office: 4850 Mark Center Drive
- Mail: P.O. Box 178, Alexandria, VA 22313
- Phone: 703-746-4800
- Email: businesstax@alexandriava.gov
Questions to ask Business Tax before you file
- What is my category rate, and where do I find the current rate sheet?
- How do you apply the state population floor to my receipts?
- What is my first-year estimate threshold, and how is the year-end adjustment calculated?
- Does my business qualify for any flat-fee regulatory license?
- What is the current status of my short-term rental permit?
This guide is informational content, not legal or tax advice. Rates, thresholds and deadlines change, and some figures above should be confirmed directly with Business Tax. For complex situations, such as multiple locations, mixed categories or large first-year estimates, consult a qualified attorney or certified public accountant (CPA).