Charlottesville VA Business License: $35 and $50 Fee Tiers, Commissioner-Set Classes and Tax Portal
Charlottesville licenses businesses through the local Business, Professional and Occupational License (BPOL) tax. Businesses with under $50,000 in gross receipts pay $35, businesses with $50,001 to $100,000 pay $50, and businesses above $100,000 pay a rate applied to their receipts. The Commissioner of the Revenue, Todd Divers, issues the license and sets your classification, so you do not choose it yourself. Before you apply, confirm your address is inside the city, because some addresses with a Charlottesville mailing address sit in Albemarle County.
This guide is informational content, not legal or tax advice. Confirm current figures with the Commissioner's office before you file, and talk with a qualified attorney or CPA if your situation is complex.
Virginia has no statewide business license
The State Corporation Commission (SCC) forms LLCs and corporations but issues no business license. The license you pay to the city is a local tax under Va. Code 58.1-3700 et seq., and each locality sets its own rates and filing deadlines. Not every Virginia locality levies a general license, because Va. Code 58.1-3704 lets a locality levy none. Charlottesville does levy one. Regulated trades and professions also need state board licenses, such as DPOR for contractors, and those are separate from the city license.
Charlottesville is an independent city with 44,388 residents. It is separate from Albemarle County, and its licenses come from the city Commissioner of the Revenue, not from the county.
Charlottesville VA business license fee tiers
| Annual gross receipts | License fee |
|---|---|
| Under $50,000 | $35 |
| $50,001 to $100,000 | $50 |
| Over $100,000 | Receipts multiplied by the rate for your classification |
The city's page prints only one rate: contractors pay $0.16 per $100 of gross receipts over $100,000. It does not print rates for retail, professional or service classes. For those, call 434-970-3170 or email citycorbiz@charlottesville.gov and ask for the rate that applies to your classification.
Charlottesville had 44,388 residents, which places it in the 25,000 to 50,000 population band. Under state law, a locality in that band cannot require a license from a business with gross receipts under $50,000. Ask the office how the $35 tier fits that rule for your business before you pay.
Classification is set by the Commissioner
The Commissioner of the Revenue, not the applicant, sets your classification. If you disagree with the classification, you may appeal to the Commissioner within one year under Va. Code 58.1-3703.1(A)(5). Ask the office which category it assigns your business before you apply, because the category determines the rate on receipts above $100,000.
Check your address before you apply
Some addresses with a Charlottesville mailing address, including some near the University of Virginia, are in Albemarle County. Albemarle has its own license rules. The city says a business may be in the Albemarle portion of Charlottesville, so a Charlottesville mailing address does not settle the question. Check your address in the city's GIS viewer before you apply. If the parcel is in Albemarle County, follow the Albemarle County business license rules instead.
How to apply for a Charlottesville business license
New businesses must apply within the first 30 days of establishing business. Virginia's general default is to apply before you start operating, so file as early as you can.
Your first-year tax is based on an estimate of your receipts. After a full calendar year, the city bases the tax on your prior year's actual receipts.
The city's Business License Tax page offers two routes. You can upload your application through the Secure Portal under the category Business License Application, or you can mail it to:
Commissioner of the Revenue
P.O. Box 2964
Charlottesville, VA 22902
The city's Business Tax Portal page, however, says new applications are processed by staff in person, by mail or by email. Because the city's pages describe intake differently, use the secure form or mail, and confirm the current method at 434-970-3170 before you send anything. Once the office processes a new application, it issues your portal credentials.
City of Charlottesville VA business license renewal
Renewals are due March 1. If March 1 falls on a weekend, the deadline moves to the next business day. In 2026, the city set March 2 because March 1 was a Sunday. Renewals from the 2026 cycle are paperless and handled through the Business Tax Portal.
Charlottesville VA business tax portal sign-in
To sign in to the Business Tax Portal, enter your mailing ZIP code, your business tax account number, and your EIN or SSN, without dashes. Keep your account number on file. If you cannot sign in, call the Commissioner's office rather than creating a second account for the same business.
Contractors
Contractors based outside the city that perform work inside it report their receipts from city work and pay the city rate of $0.16 per $100 of receipts over $100,000. If you want an active license with $0 in receipts, a $35 minimum applies. Confirm that with the office, since the rule depends on how you report.
Bring Form 61A or proof of workers' compensation coverage, along with your DPOR license number. Since July 1, 2025, DPOR contractor license classes are Class C for over $1,000 to under $30,000, Class B for $30,000 to under $150,000, and Class A for $150,000 or more. Confirm your class with DPOR at its official site before you apply.
Food trucks, pop-ups and peddlers
Food trucks, pop-ups and peddlers pay $125 a year. The fee is pro-rated, so a business that starts midyear pays a portion of the annual amount. Virginia has no statewide food-handler card rule, but food establishments are required to have a Certified Food Protection Manager. Confirm what applies to your operation with the city before you begin serving.
Homestays
A homestay in a residential district needs an annual Homestay Permit from Neighborhood Development Services, in addition to the business license. At renewal, the host also completes an Accommodations Provider Attestation. Hosts who use only platforms that collect the lodging tax still file a gross receipts report with the city.
Charlottesville VA meals tax and other city taxes
The city meals tax is 7 percent. It rose from 6.5 percent on July 1, 2024, and is due on the 20th of each month. Meals also carry the 5.3 percent sales tax (state plus local), so the combined rate on a restaurant meal is 12.3 percent. A restaurant with $50,000 in meal sales in a month owes $3,500 in meals tax. A year with $500,000 in meal sales produces $35,000 in meals tax.
The transient occupancy tax, also called the lodging tax, is 9 percent on stays under 30 days, and it is due on the 20th.
Business tangible personal property and machinery and tools are taxed at about $4.40 per $100 of assessed value, billed in installments due June 5 and December 5. For the filing date, the statutory deadline is January 31, but the city asks for March 15. The city's page does not state a late filing penalty. Confirm the filing deadline with the Commissioner before you rely on either date.
The city also offers a Qualified Technology Business credit. Ask the Commissioner whether it applies to your business.
For state sales tax registration and rules, see the Virginia Tax sales and use tax page.
Edge counties and nearby localities
Rules differ across the region. Do not assume a neighboring locality's answer applies to Charlottesville, or the reverse.
| Locality | What to know | Next step |
|---|---|---|
| Greene County | Has a gross receipts license. Its rates and threshold are not confirmed here. | Confirm with the county |
| Nelson County | Has been reported to charge a $30 annual license. | Confirm with the county |
| Fluvanna County, Louisa County, Madison County | Reported to levy no general business license. | Confirm with each county, then see the list of localities with no business license tax |
| Scottsville | A town. A town can displace the county tax. | Check with the town |
State filings for your business entity
- LLC: Articles of Organization (Form LLC1011) cost $100. Virginia LLCs file no annual report. They pay a $50 annual registration fee to the SCC.
- Corporation: Articles of Incorporation (Form SCC619) cost $75. Stock corporations pay an annual report and annual registration fee based on authorized shares, currently $100 for up to 5,000 shares plus $30 for each additional 5,000 shares. Check the SCC annual fee schedule.
- Assumed name (DBA): $10, filed with the SCC, not the circuit court.
- Name reservation: $10 for 120 days.
Search existing names and file through the SCC Clerk's Information System. General SCC business guidance is at scc.virginia.gov/businesses.
Next steps
- Confirm your address is inside the city using the GIS viewer.
- Estimate your gross receipts, then ask the Commissioner's office for your classification and rate.
- Apply through the Secure Portal or by mail, and confirm the intake method at 434-970-3170.
- File an assumed name with the SCC if you operate under one.
- Calendar March 1 for renewal, the 20th of each month for meals tax, and the June 5 and December 5 personal property installments.
For free help with planning and filing, the Virginia Small Business Development Center network can point you to local advisors.
Disclaimer: This article is informational content, not legal or tax advice. Fees, deadlines and classifications change. Verify them with the City of Charlottesville Commissioner of the Revenue at 434-970-3170 or citycorbiz@charlottesville.gov, and consult a qualified attorney or CPA for your specific situation.