The City extends the privilege to engage in a commercial enterprise by issuing a business license. Persons without a business license may not lawfully engage in business. The license, which is often referred to as a permit or certificate of eligibility, must be renewed annually. Businesses, professionals, and occupations that meet all qualifications and legal requirements are eligible to obtain licenses upon application and payment of the license tax.

Any person or organization starting a business in Virginia must register with the State prior to opening the business. Registration can be completed online or by filing Form R-1 with the Virginia Department of Taxation. Businesses located in the City of Alexandria that collect sales tax must ensure that the Business Locality Code (or FIPS Code) on their R-1 is 51510. To ensure that the business is being registered in the correct jurisdiction, a business owner can look up the business' FIPS Code here or follow the instructions below.

• Virginia Department of Taxation's Business Registration Pamphlet (PDF)
• Virginia Business One Stop 

Businesses with the following zip codes are located entirely in the City of Alexandria:

• 22301
• 22305
• 22314

The 22302, 22304, 22311, and 22312 zip codes are shared between Fairfax County and the City of Alexandria. The 22206 zip code is shared between Arlington County and the City of Alexandria. Any business located in the 22302, 22304, 22311, 22312, or 22206 zip code may verify its locality via the United States Postal Service website by entering the business address and clicking on "Mailing Industry Information."

Registration of a Corporation or a Limited Partnership

All corporations (foreign and domestic) and limited partnerships conducting business in Virginia must register with the Virginia State Corporation Commission. To become incorporated in Virginia, an organization must file articles of incorporation and amendments with the State Corporation Commission. Procedures for filing can be found in the Code of Virginia Stock Corporation Act, Title 13.1-601 through 13.1-800.

General Partnerships and trade names must also be registered with the Virginia State Corporation Commission.

Information on registration or incorporation can be obtained by contacting:

Virginia State Corporation Commission
P.O. Box 1197
Richmond, VA 23218
866.722.2551 or 804.371.9733

New applications should be emailed to businesstax@alexandriava.gov or mailed to:

City of Alexandria Business License
P.O. Box 178
Alexandria, VA  22313
 

• 2023 Business License Application (PDF)
• 2023 Delinquent Business License Application (PDF)
• Interdepartmental Form
• Zoning Approval 
• Fire Code Approval 
• Certificate of Occupancy (PDF)
• Meal Sales Tax Registration
• Transient Lodging Tax Registration
• Short-Term (Daily) Rental Application

Business license applications submitted by mail must include payment of the business license tax. The business license application, payment (by check or money order), and any other required documentation may be mailed to:

City of Alexandria Business License
P.O. Box 178
Alexandria, VA 22313

Returned checks are subject to a $35 fee in accordance with state law.

Persons seeking a permit to act as solicitors, canvassers, or peddlers within the City must follow certain specific procedures before doing business in the City.

• Solicitor Permit Procedures 
• Solicitor Permit Application (PDF)

Any person starting a business without a license shall be guilty of a misdemeanor and unless otherwise specifically provided by law, shall on conviction thereof be fined not less than $5 nor more than $500 for each separate offense. After 30 days, the penalty assessed increases to $10 or 10 percent of the amount of the license tax, whichever is greater. The penalty shall be assessed and paid along with the license tax and shall become a part of the license tax. ( City Code Section 9-1-14)

Every person beginning a business, profession, or occupation is required to estimate the gross receipts he/she will receive between the date of beginning business and the end of the current license year (December 31). The current year's license tax is computed on that estimate. If estimated gross receipts are $2 million or greater, the estimated license tax is adjusted at the end of the tax year to reflect the business' actual gross receipts.

In the first year of operation: A business has no tax liability if its estimated gross receipts are less than $100,000. However, the business must still register with the Permit Center. The minimum annual license tax is $50 for businesses with estimated gross receipts of at least $100,000 but less than $1,999,999. Businesses with estimated gross receipts of $2,000,000 or more are assessed a percentage of their gross receipts.

Note: This tax schedule does not apply to the following business tax categories: renting by owners of residential or commercial property, contractors, wholesale merchants, amusements, public utilities, and regulatory activities. (Information on regulatory licenses can be found below.)

A more detailed explanation of this tax, including information on tax rates, is available on the Business License Tax page. Examples of Business Tax calculations can be found at How Business Tax is Calculated.

The license tax for the following types of businesses and/or business activities are not based on gross receipts as described above and instead pay the flat license tax listed.

Businesses Licensed by the State Alcoholic Beverage Control Commission to Manufacture, Bottle or Sell Alcoholic Beverages 

Businesses Manufacturing, Bottling or Selling Beverages of Not More Than 3.2% Alcohol 

Carnivals, Circuses, Menageries, Side Shows, Tent Shows, Rodeos, Animal Shows, Festivals, Fiestas, etc. 

Slot Machine Operators 

Fortune Tellers, Phrenologists, etc. 

Every fortuneteller, clairvoyant, phrenologist, spirit medium, chiromancer, astrologist, hypnotist or palmist operating in the City shall pay for the privilege an annual license tax of $1,000, and this license tax shall not be prorated.

Massage Parlor Operators 

Every person operating a massage parlor, as defined by Alexandria City Code Section 11-4-1, shall pay an annual license tax of $5,000. Before any license shall be issued, the applicant must produce evidence that he or she has obtained a permit under the provisions of Alexandria City Code Section 11-4-7.

Retail Peddlers 

Itinerant Vendors 

Every person engaged in the business of an itinerant vendor within the City shall pay an annual license tax of $500. 

The City assesses property taxes on business tangible personal property, real estate and motor vehicles.

Business Personal Property Tax  

The City levies a tax each calendar year on all tangible property used in a business, profession or occupation. Business tangible property includes furniture, fixtures and equipment, including but not limited to desks, typewriters, personal computers, movable partitions, drapes, cabinets and chairs. In addition, all manufacturers, mining, processing or reprocessing companies, television or radio broadcasting companies, dairy, and dry cleaning or laundry businesses located in the City must pay a property tax on machinery and tools used in their business.

The Business Personal Property Tax is levied as a percentage of the assessed value of the property, based on the tax rate set by the City Council on or around May 5 each year. In the third week of March, the Finance Department mails property tax returns to all businesses licensed in the City that began operating prior to January 2 of the current year. Business Personal Property Tax returns are due May 1 (or the next business day if May 1 falls on a weekend or holiday). Business Personal Property Tax bills based on these returns are mailed in mid-August with a due date of October 5 (or the next business day if October 5 falls on a weekend or holiday).

Real Estate Tax  

Commercial property is assessed at 100 percent of the estimated fair market value as of January 1 of each year. For information on real estate assessment procedures, Board of Equalization and Assessment Review and the appeals process, please visit the Department of Real Estate Assessments. Real estate taxes are calculated by multiplying the property's assessed value by the real estate tax rate. Real estate taxes are billed and payable in two installments. The first tax bill is mailed in May and is due by June 15 (or the next business day if June 15 falls on a weekend or holiday). The second tax bill is mailed in October and is due by November 15 (or the next business day if November 15 falls on a weekend or holiday).

Personal Property (Vehicle) Tax  

All motor vehicles normally parked, stored, or garaged (having situs) in the City of Alexandria, including vehicles with out-of-state plates, must be registered for the City's annual personal property tax. All motor vehicles registered to a City address with the Virginia Department of Motor Vehicles must also be registered with the City, even vehicles normally parked, stored, or garaged in another state. New businesses have 30 days to register their vehicles with the City. The annual personal property tax bill is mailed in August and must be paid by October 5 (or the next business day if October 5 falls on a weekend or holiday). Payments on newly registered vehicles are due within 30 days of the billing date. 

Businesses that begin after January 1 must file the application and pay taxes immediately. Payments for new businesses may be submitted in person at City Hall. The Permit Center accepts payment of the $50 license fee by check only. If a higher business license tax is assessed or if the licensee wishes to pay by other methods, the license tax may be paid at the Treasury Division in Room 1510 or at the payment kiosk in Room 1700. The Treasury Division accepts cash, check, money order or Discover Card. The payment kiosk accepts payments by check, Visa, MasterCard, or Discover Card. The business license application, tax payment (by check or money order), and supporting documentation may also be mailed.

Please note that returned checks are subject to a $35 fee in accordance with state law.

Business personal property tax bills are mailed to property owners in late August or early September. Payment is due by October 5 (or the following business day if October 5 falls on a weekend). Any business owner wishing to pay by mail should write the account number on a check or money order and send it with the bill stub to:

City of Alexandria Business Personal Property
P O Box 34901
Alexandria, VA 22334-0901

Payments should not be mailed to any other address. Returned checks are subject to a $35 fee in accordance with state law. Information on all other payment methods, including paying by credit card or eCheck, is available on the Payments Page.

Real estate tax payments (by check or money order), if not made by the taxpayer’s bank or mortgage company, may be mailed with the bill stub to:

Treasurer's Office
P.O. Box 34750
Alexandria, VA 22334-0750

Any property owner wishing to pay by check or money order should write the account number in the memo field. Returned checks are subject to a $35 fee in accordance with state law.

Through the Automatic Bank Debit Program, taxpayers may register to make real estate tax payments monthly or have the lump sum of the tax amount due automatically debited on each of the two tax due dates. This program has proven to be popular with those who prefer making monthly payments and with those who may travel a great deal and may either forget the bill or be out of town when the tax payment falls due. (Example: preauthorized monthly payment schedule).

Information on all other payment methods, including paying by debit/credit card or eCheck, is available on the Payments Page.

Personal property tax payments (by check or money order) may be mailed with the bill stub to:

Treasury Division
Department of Finance
City of Alexandria
P.O. Box 34710
Alexandria, VA 22334-0710 

Any vehicle owner wishing to pay by check or money order should write the account number in the memo field. Returned checks are subject to a $35 fee in accordance with state law.

Information on all other payment methods, including paying by debit/credit card or eCheck, is available on the Payments Page.

Each business-related tax or fee will have its own filing and payment requirements. Information on paying all other business-related taxes can be found by visiting the Alexandria Tax Guide and clicking on the appropriate tax type.