Harrisonburg VA Business License: $0, $25 and $50 Tiers Under $100,000 and a $0.20 Services Rate

October 29, 2026

If you plan to sell, provide services, or work from home in Harrisonburg, you need a City of Harrisonburg business license before you open. Virginia has no general statewide business license. The State Corporation Commission (SCC) forms your entity and files your name, but it does not issue a business license. The license you need from Harrisonburg is the Business, Professional and Occupational License (BPOL), a local license tax under Va. Code 58.1-3700 et seq. This guide covers what the Harrisonburg license costs, how to apply, when it renews, and what other city taxes apply to the same business.

What the Harrisonburg Business License Costs by Gross Receipts

Harrisonburg is a little over 50,000 people, which means state law does not let the city require a license for businesses with gross receipts under $100,000. The city's fee schedule for the smaller tiers is set below. Every business must be licensed, including home-based businesses, at a definite place of business. A business with $10,000 or less in gross receipts pays $0 but still must register.

Annual gross receipts	Harrisonburg license cost
$10,000 or less	$0 (license still required)
$10,001 to $25,000	$25
$25,001 to $100,000	$50

The license is valid for a calendar year. Above $100,000, the cost is no longer a flat tier. It is a rate per $100 of gross receipts, so the rate table below is what matters for most growing businesses.

Harrisonburg VA Business License Tax Rates Above $100,000

Above $100,000, the city charges a rate for each $100 of gross receipts. Find your category and multiply your receipts by the rate, divided by 100.

Business category	Rate per $100 of gross receipts
Contractors	0.16
Retail	0.20
Repair, personal and business services	0.20
Financial, real estate and professional services	0.58

Two points matter here. First, repair, personal and business services pay 0.20 in Harrisonburg. That is well below the 0.36 rate many Virginia cities charge for the same category, so do not assume a neighboring city's number applies. Second, professional services pay the highest rate. A firm with $300,000 in professional receipts owes about $1,740 ($300,000 divided by 100, times 0.58).

The Harrisonburg Wholesale Business License Formula

A Harrisonburg wholesale business license is based on purchases, not sales. Wholesale pays $30 on the first $1,000 of purchases, plus 0.17 per $100 of purchases above $1,000. The $50,000 threshold that applies to other categories does not apply to wholesale. For example, a wholesaler with $1,000,000 in purchases owes about $1,728 ($30, plus 0.17 times $999,000 divided by 100).

A new business estimates its gross receipts for the first partial year and for the first full year. The city adjusts that estimate at renewal. Later years use the prior year's actual receipts.

Steps to Get a Harrisonburg License and Who to Call

Before the city issues a license, the proper zoning or home-occupation approval must be in place. Community Development (540-432-7700) handles these approvals.

1. Get the zoning or home-use approval. A business at a commercial or non-home location needs an approved Zoning and Building Form. A home-based business needs a Home Occupancy Permit, which is the city's version of a home occupation permit. Community Development sets the rules for both, so call 540-432-7700 before you sign a lease or start operating from your home.
2. Register extra filings if they apply. Homestay and short-term rental owners must also file the city's annual homestay registration and an accommodations provider attestation. A business that operates under a name other than the owner's name must register an assumed name with the SCC for $10. You can file at the SCC Clerk's Information System at https://cis.scc.virginia.gov/.
3. Contractors add licensing documents. Contractors submit the workers' compensation form and a DPOR contractor license. If you do not yet have a DPOR license, submit a contractor's affidavit instead. Since 2025-07-01, DPOR classes are Class C for contracts over $1,000 to under $30,000, Class B for $30,000 to under $150,000, and Class A for $150,000 or more.
4. Apply at the Commissioner of the Revenue. The office is at 409 S Main St, first floor, phone 540-432-7704. You can apply in person, by mail, or by email to the address printed on the application.
5. Pay the bill. The office issues a bill number after it processes your application. You pay that bill online or by phone. If you pay by check, make it payable to Treasurer, City of Harrisonburg.

Harrisonburg VA Business License Renewal: Deadlines and Penalties

Renewal is due March 1 each year. When March 1 falls on a weekend, the due date moves to the following Monday. In 2026, March 1 was a Sunday, so the due date was Monday, March 2. A mailed renewal counts if it is postmarked by the due date. Meter dates do not count, so do not rely on a postage meter stamp.

The late penalty for renewing after March 1 is 10 percent of the license cost. A new business must register within 30 days of opening. If it registers later than that, the city adds a penalty of up to 10 percent of the tax, plus 6 percent interest.

Other City Taxes Owed Separately from the License

The Harrisonburg license is only one local tax. The following taxes are separate and have their own returns and deadlines.

Tax	Rate	Filing or payment timing
Business tangible personal property	$2.12 per $100 of assessed value	Return due March 31 (10 percent late fee); bills due December 5
Machinery and tools (manufacturing and similar classes only)	$2.12 per $100 of assessed value	Same as business personal property
Business vehicles	$3.45 per $100	Same as business personal property
Meals	7.0 percent	Monthly return due before the 20th
Transient occupancy (stays under 30 days, including Airbnb and VRBO)	7.0 percent	Confirm the filing schedule with the city
Admissions	5 percent	Confirm the filing schedule with the city
Non-lodging short-term rental of property for 92 days or less	1 percent	Confirm the filing schedule with the city

The 1 percent tax is a separate tax on renting property, such as equipment, for 92 days or less. It is not the transient occupancy tax on Airbnb or VRBO stays. Those lodging stays fall under the 7.0 percent transient occupancy tax.

What Applies Just Outside the City

Harrisonburg sits inside Rockingham County. The county has no general license tax, so a business located outside the city limits in the county owes the county no license fee. It does, however, report its inventory to the county by May 1. Several towns in the county license businesses on their own, including Bridgewater, Broadway, Dayton, Elkton, Grottoes and Timberville. Confirm the rules for your exact address before you open. Waynesboro and Augusta County are covered in the Staunton business license guide on this site.

Other Valley localities set their own rules, as the table shows. These figures come from local sources and must be confirmed with each county before you rely on them.

County	Reported local rules
Page County	Retail 0.10, professional 0.30, services 0.20, contractor 0.10, wholesale 0.05. A $20 minimum appears on an undated county rate guide, so confirm it. Renewal is March 1.
Shenandoah County	Does not require a business license, but asks every business to register with the Commissioner of the Revenue.
Clarke County	Reported $30 county license. Verify with the county before you pay.

Local Context

Harrisonburg's downtown has grown into one of the Valley's better places to eat and drink, with independent restaurants, coffee shops and specialty food vendors clustered near Main Street. James Madison University brings a steady population of students, faculty and visitors, which shapes demand for food, lodging, retail and services throughout the year. If you plan a food, lodging or retail business near campus or downtown, expect the city's meal and lodging taxes to apply, and plan your monthly returns accordingly.

Next Steps and Important Notes

This guide is informational content, not legal or tax advice. Fees, rates and deadlines can change, and some figures above are reported by local sources that you should confirm directly. Before you sign a lease, form an entity, or set up a home-based operation, call the Commissioner of the Revenue at 540-432-7704 and Community Development at 540-432-7700. For entity formation, see the SCC business resources at https://www.scc.virginia.gov/businesses/. For state tax questions, see Virginia Tax at https://www.tax.virginia.gov/. If your business is complex, such as a multi-location operation, a wholesale and retail mix, or a contractor with multiple license classes, consult a qualified attorney or CPA before you file.