City of Fairfax Business License: Commissioner of the Revenue, 30-Day Rule and March 1 Renewal
Informational only: This guide explains how the business license works in the City of Fairfax, VA. It is not legal or tax advice. Confirm current figures with the named agency before you file or pay.
The City of Fairfax is an independent city with a population of 26,772 (Census Vintage 2025). It is not part of Fairfax County, and businesses located inside the City are not subject to county BPOL. If your business is in Fairfax County outside the City, read our Fairfax County business license guide instead.
If you are opening a business in Fairfax, VA, your license comes from the City, not the state. Virginia has no general state business license. The State Corporation Commission forms entities but issues no business license. The license most businesses need is the Business, Professional and Occupational License (BPOL) tax, a local tax under Va. Code 58.1-3700 et seq. Localities are not required to levy one (Va. Code 58.1-3704), but the City does, and the Commissioner of the Revenue administers it.
How the Population Floor Applies to the City
State law limits how a locality may set its license threshold based on population. A locality with 25,000 to 50,000 residents cannot require a license for businesses with gross receipts under $50,000. The City's population falls in that band, so the $50,000 floor is the state minimum. The City sets its own exemption and rates within the law, so ask the Commissioner exactly where the City's threshold sits (verify).
Who Issues Your License
The Commissioner of the Revenue handles the City of Fairfax business license, the BPOL filing, and business personal property records. Confirm the office address, hours and phone number on the City's website (verify), since they change. You can apply online through the City's online application or the eservices tax portal (verify the current link on the City site), or apply with the Commissioner's office directly (verify).
The 30-Day Rule
Apply within 30 days of the start of operations. Treat the day you first begin doing business as your starting point. If you file late, the City adds a 10 percent penalty. Ask the Commissioner how the City treats pre-opening work, soft launches, or a seasonal business that starts in a different month (verify).
The March 1 Renewal
After your first application, the license renews every year. Use this schedule to plan:
| Date | What happens |
|---|---|
| Within 30 days of starting operations | Initial application due. A late filing carries a 10 percent penalty. |
| March 1 | Annual renewal due. |
| March 2 | Penalty applies to a late renewal. |
| April 1 | Interest begins to accrue on the unpaid balance. |
Put March 1 on your calendar at the start of each year. Confirm with the Commissioner whether the City sends a renewal notice or whether you must file on your own (verify).
What You Will Pay: Rates Set by City Council
City Council sets BPOL rates by category each year, and the rates are charged on gross receipts. The reported rates before FY2027 were:
- $0.40 per $100 for professional, financial and real estate services
- $0.27 per $100 for repair, personal and business services
Patch reported a proposal for FY2027 to raise these to $0.45 and $0.30 per $100, which would be the first change in more than 30 years. Adoption is not confirmed, so treat the higher figures as a proposal until you verify them with the Commissioner. The City of Alexandria's Q&A lists City of Fairfax financial services at 0.40, which matches the prior rate (verify). For every other category, call the Commissioner of the Revenue for your rate. Do not assume a rate from another locality.
Business license revenue was $11.41 million in FY2024, according to the Auditor of Public Accounts. That figure shows how much of the City's budget depends on this tax, so expect the rates to stay under review.
Meals Tax, Lodging Tax and Sales Tax
If you sell prepared food or drinks, the City's meals tax was 4.0 percent and rises to 4.5 percent effective July 1, 2026 (verify). The City reports that Council adopted its FY2027 budget on May 5, 2026. The lodging tax is reported to rise to 10.5 percent, but that is a proposal and adoption is not confirmed (verify). Check the adopted ordinance for the final schedule.
Meals, utility and cigarette taxes are filed monthly by the 20th of the month. Transient occupancy (lodging) taxes are filed quarterly (verify each schedule with the City). The combined sales tax rate in the City is 6.0 percent. If you sell taxable goods, you need a sales tax permit from Virginia Tax, and you can start at the Virginia Tax sales and use tax page.
Property Taxes Tied to Your Business
Business personal property, such as furniture, computers and equipment, is taxed locally and is separate from the license. Register it with the Commissioner (verify). The tax year 2025 rate book lists real estate at 1.055, business personal property at 4.130, and machinery and tools at 4.130, each per $100 of assessed value (verify). The Old Town Service District carries a separate rate of 0.080 (verify). For FY2027, the City reports a real estate rate of $1.0725 per $100 (reported, verify).
Related Offices
- Zoning: 10455 Armstrong Street, Room 207, 703-385-7820 (verify). Confirm that your business use is allowed at your address before you apply.
- Fire Prevention: certificates are handled at 703-385-7847 (verify).
Practical Steps
- Confirm zoning with the Zoning office at 10455 Armstrong Street, Room 207.
- Apply for the business license online or with the Commissioner of the Revenue within 30 days of starting operations.
- Register business personal property with the Commissioner.
- If you sell prepared food or drinks, or rent lodging, open the meals or lodging tax accounts that apply to you.
- Get a Virginia sales tax permit if you sell taxable goods.
- Calendar the March 1 renewal and the monthly 20th filings.
Related Guides
For the statewide picture, read our BPOL tax explainer by locality. To compare other Virginia localities, browse our local business guides. If you are still deciding how to form your business, see how to start an LLC in Virginia.
When to Get Professional Help
This guide is informational, not legal or tax advice. A certified public accountant can help with gross receipts reporting, the meals and lodging taxes, and business personal property filings. An attorney can advise on zoning questions or disputes about how the City classifies your business. Ask the Commissioner of the Revenue about the City's category rules before you file.