Majority of Richmond businesses will see tax relief in 2026

RICHMOND, Va. (WRIC) -- City leaders are celebrating what they're calling a win for Richmond small businesses. Starting in 2026, nearly 70% of Richmond business owners will be paying less taxes.

On Monday, July 28, the Richmond City Council amended a city ordinance that deals with business, professional and occupational license (BPOL) taxes.

Richmond business owners whose gross receipts total more than $5,000 but do not exceed a certain threshold only have to pay a $30 annual license tax. Those who exceed that threshold have to pay higher fees -- amounting to as much as $2,900, per the city.

During Monday's meeting, councilmembers moved to double that threshold from $250,000 to $500,000, effective Jan. 1, 2026.

Hopewell city councilor found guilty of embezzling public funds

As nearly 70% of Richmond businesses fall under that new threshold, the vast majority of the city's businesses will "experience some measure of tax relief," according to the Richmond Department of Finance.

“Richmond small businesses are the heartbeat of our City,” said Mayor Danny Avula in a July 29 press release. “By lowering their tax burden, we’re giving small business[es] some additional breathing room to grow, to innovate and to hire the staff they need to realize their business goals. In doing so, I hope we’re sending a clear message to the small business community: you are a valued part of Richmond and this City wants to see you thrive.”