Fredericksburg Business License: $25 Flat Under $100,000, $350,000 Rate Tier and the March 1 / March 15 Split
If you plan to operate in Fredericksburg, VA, the local license is the piece most new owners miss. Virginia has no general statewide business license. The State Corporation Commission (SCC) forms your entity, but it issues no license to operate. The City collects its own Business, Professional and Occupational License (BPOL) tax under Va. Code 58.1-3700 et seq. This guide covers what the City charges, when it is due, and the order to take the steps in.
Fredericksburg is an independent city with a population of 30,393 (Census Vintage 2025). It is not part of Spotsylvania County or Stafford County, so the rules for those counties do not carry over.
Informational content only: This page is not legal or tax advice. City rates, forms and deadlines can change. Confirm anything that affects your budget with the Commissioner of the Revenue, and talk to a licensed attorney or CPA about complex situations, such as a business with income across several localities.
What you pay: the three gross receipts tiers
Your BPOL tax depends on your gross receipts for the license year. Fredericksburg uses three tiers:
| Gross receipts | What you pay |
|---|---|
| Under $100,000 | A flat $25 |
| $100,000 to $350,000 | $50 on the first $100,000, plus the category rate on the rest |
| Over $350,000 | The category rate applies to all gross receipts |
Older material, including a 2013 memo that showed a $25 to $50,000 structure, is out of date. Use the tiers above when you estimate your fiscal fee.
Category rates: call for the Fredericksburg, VA rate table
The City's category rates are not reproduced on this page. The only published example on the City's page is professional services at $0.58 per $100 of gross receipts, which is the state ceiling for that category. For your own category rate, call the Commissioner of the Revenue at 540-372-1004 and ask for the current rate table.
The state sets a maximum rate per $100 of gross receipts for each category. These figures are ceilings, not Fredericksburg's rates:
- Contracting: 0.16
- Retail: 0.20
- Financial, real estate and professional: 0.58
- Repair, personal, business and other: 0.36
- Wholesale: 0.05 of purchases
Use the ceilings to set a worst-case budget. Take a professional firm with $200,000 in gross receipts. The first $100,000 pays $50. The remaining $100,000 at the 0.58 ceiling adds $580, so the most the firm could owe is $630. The City's actual rate may be lower, and you will not know it until you have the rate table.
Deadlines: March 1 application, March 15 payment
The Fredericksburg renewal cycle has two dates:
- March 1: renewal application due.
- March 15: payment due.
The next cycle for an existing business is March 1, 2027 for the application and March 15, 2027 for payment.
A new business works differently in its first year. The first-year tax is based on an estimate of gross receipts through December 31. The City trues up the figure in year two, once actual receipts are known. Budget for a possible adjustment rather than treating the first estimate as final.
The steps, in order
Work through these in sequence. Only the steps that fit your project apply to you.
- Certificate of Zoning Use. Start here. Contact Community Development at [email protected] or 540-372-1179. If you run the business from your home, ask whether you need a Home Occupation Permit.
- Certificate of Occupancy. Call 540-372-1080. Home-based businesses should ask whether this step applies to them.
- Architectural Review Board approval. Needed when your project is in the historic district.
- Sign permit. Needed if you plan exterior signage.
- The business license. Apply through the Commissioner of the Revenue once the steps above that apply to you are complete.
Two rules trip people up:
- Each business needs its own license, even if two businesses share an office.
- A contractor doing a City job under $25,000 may be exempt if licensed elsewhere. Non-profits with an IRS determination letter may also be exempt. Confirm both with the Commissioner before you rely on an exemption.
The City's website also has pages for landlords, event umbrella coverage and contractors. Check those if one of them describes your situation.
Who to call: Commissioner of the Revenue and Treasurer
The Commissioner of the Revenue assesses the BPOL tax. The Treasurer collects it. Know which office you need before you call.
Commissioner of the Revenue: 715 Princess Anne Street, Room 102. Mail: P.O. Box 644. Phone 540-372-1004. Fax 540-372-1197. Published hours: Monday 8 to 12; Tuesday, Wednesday and Friday 8 to 4; closed Thursday. Confirm these hours with the Commissioner's office before you visit.
Treasurer: P.O. Box 267, Fredericksburg VA 22404.
A receipt from the Treasurer shows that you paid. It is not, on its own, your license. Ask the Commissioner which document the City issues to you before you treat any receipt as proof of licensing.
BPOL is a local tax, and population sets a floor
BPOL is a local license tax, not a state one, and each city or county sets its own rates and filing deadlines. Virginia localities are not all required to levy a general license. Va. Code 58.1-3704 allows a locality to levy none, and some do not. Stafford County is one example. Never assume that every locality requires a license, and do not assume a neighbor's rules apply to you.
Population also sets a statutory floor. A locality over 50,000 people cannot require a license for gross receipts under $100,000. A locality of 25,000 to 50,000 people cannot require one for receipts under $50,000. Below 25,000 people, no floor applies. Fredericksburg's population of 30,393 falls in the 25,000 to 50,000 band, yet the City's flat tier covers receipts under $100,000. Ask the Commissioner to explain how the $25 flat tier fits within that floor before you plan around it.
Regulated trades also need state licenses, which are separate from the City's BPOL. For contractors, the Department of Professional and Occupational Regulation (DPOR) uses these classes since July 1, 2025: 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. A state contractor license does not, by itself, satisfy the City's BPOL requirement.
Other City taxes on your business
Several City taxes sit alongside the license:
- Fredericksburg meals tax: 6 percent. Confirm your filing requirements with the City if you sell prepared food.
- Lodging tax: 8 percent as of July 1, 2023, remitted by the 20th.
- Admissions tax: 7 percent.
- Short-term equipment rental: 1 percent. In BPOL law, short-term rental means equipment rental, not Airbnb-style lodging, so do not confuse the two.
- Real estate: $0.80 per $100 through June 30, 2026. The tax year 2025 rate book lists 0.770. The $0.80 figure has passed its end date, so confirm the current rate with the Commissioner or Treasurer.
- Tangible personal property: $3.40. The tax year 2025 rate book lists 3.400 for tangible personal property and 0.800 for machinery and tools.
For context, the Auditor of Public Accounts reports that Fredericksburg's business license revenue was $8.12 million in FY2024.
Sales tax: 5.3 percent, not 6
Fredericksburg collects the 5.3 percent sales tax, the combined state and local base rate. Fredericksburg is not in the 6 percent Northern Virginia region, so do not quote that rate to customers. Groceries are taxed at 1 percent. Get permit information from Virginia Tax at https://www.tax.virginia.gov/sales-and-use-tax.
Fredericksburg compared with its neighbors
Local rules change at each border. Here is how three nearby localities compare:
| Locality | Local license position | Where to confirm |
|---|---|---|
| Fredericksburg (independent city) | $25 flat under $100,000 in gross receipts, with the tiers above | Commissioner of the Revenue, 540-372-1004 |
| Spotsylvania County | No license below $2,000,000 in gross receipts | The county's commissioner of the revenue office |
| Stafford County | No BPOL tax | The county's commissioner of the revenue office |
If you operate in more than one of these localities, each one applies its own rules to the business it taxes.
Your next steps
- Estimate your gross receipts and call 540-372-1004 for the category rate table.
- Start the Certificate of Zoning Use with Community Development before you sign a lease or buy signage.
- Calendar March 1 (application) and March 15 (payment) every year.
- Check with the relevant state board if your trade requires a state license.
- Have an attorney or CPA review your structure if it is more complicated than a single owner or a single location.