In Lynchburg, business is personal. Our city offers more than tax incentives and infrastructure — it offers partnership and connection. As a mid-sized city located along the Eastern seaboard with a strong economic backbone, Lynchburg marries the resources of a larger market and the responsiveness of a close-knit community. Whether you’re an entrepreneur launching a new business, a site selector evaluating your next expansion, or an anchor institution growing your footprint, Lynchburg is designed to help you thrive.
And you can be part of that.
At a Glance: Lynchburg by the Numbers
Population
Lynchburg is home to more than 79,000 residents who value connection, opportunity, and progress. Our surrounding communities and counties bring our population up by nearly double that number.
Labor Force Participation
Our labor force participation rate stands at 58.5%, reflecting a community that’s actively engaged and ready to work.
Median Household Income
With a median household income approaching $60,000, Lynchburg offers an attractive blend of affordability and earning potential.
Small Business Growth
Nearly 70% of local businesses have fewer than 10 employees, showcasing our city’s entrepreneurial spirit and the tight-knit, supportive business community.
Low Cost of Living
Lynchburg’s Cost of Living is 12.8% lower than the national average.
A City at the Heart of the Region
Lynchburg serves as the economic and cultural heart of Central Virginia, anchoring a region made up of vibrant rural communities. Businesses based here benefit not only from city resources and infrastructure, but also from access to a broader labor market and customer base that stretches across surrounding counties. As the region’s largest city, Lynchburg plays a vital role in connecting rural talent, supply chains, and services with new opportunities, creating a ripple effect of growth well beyond city limits.
Core Industries
Lynchburg’s economic engine is driven by a diverse set of industries, each strengthened by deep regional roots and access to skilled talent. Our core sectors include:
- Advanced Manufacturing
- Healthcare & Life Sciences
- Higher Education
- Professional Services
- Energy & Engineering
These industries form a resilient foundation for job growth, innovation, and long-term investment.
Largest Employers
The region benefits from a mix of legacy employers and forward-looking institutions. Major employers include:
- Centra Health
- Liberty University
- Framatome
- BWX Technologies
- Frito-Lay
- City of Lynchburg
- J. Crew Distribution Center
On the job market?
Who Lives Here
Lynchburg is home to more than 79,000 residents, as reported in the 2020 Census. The city’s demographic composition is as follows:
- White alone: 60.3%
- Black or African American alone: 27.4%
- Asian alone: 2.1%
- Two or More Races: 4.6%
- Hispanic or Latino (of any race): 5.0%
This rich melting pot of cultures and backgrounds contributes to Lynchburg’s inclusive atmosphere and bustling economy.
Housing Snapshot
Lynchburg offers a range of housing options to accommodate its residents. According to the 2020 Census data:
- Total housing units: 34,497
- Homeownership rate (2019-2023): 49.1%
- Median value of owner-occupied housing units (2019-2023): $211,800
- Median gross rent (2019-2023): $1,043
These figures reflect Lynchburg’s commitment to providing affordable and accessible housing for all of its residents.
Location and Transportation
Strategically Positioned for Seamless Connectivity
Lynchburg, Virginia, offers a prime location in the heart of the Mid-Atlantic, providing businesses with efficient access to major markets across the East Coast and beyond. Our comprehensive transportation network ensures that companies can move people and products with ease.
Road Access
Lynchburg is served by several major U.S. highways, facilitating smooth regional and national travel:
- U.S. Route 29: A vital north-south corridor connecting Lynchburg to key cities such as Danville, Charlottesville, and Washington, D.C.
- U.S. Route 460: An essential east-west route linking Lynchburg to Roanoke, Richmond, and Norfolk, enhancing access to ports and inland markets.
- U.S. Route 501: Providing additional connectivity to regions south of Lynchburg.
These highways support the efficient movement of goods and services, making Lynchburg an attractive hub for logistics and distribution operations.
Rail Services
Lynchburg’s rail infrastructure offers both passenger and freight services:
- Amtrak: The Kemper Street Station in Lynchburg is served by Amtrak’s Crescent and Northeast Regional lines, connecting the city to major destinations including New York City, Washington, D.C., and New Orleans.
- Freight Rail: Norfolk Southern and CSX Transportation operate freight lines through Lynchburg, providing businesses with reliable cargo transport options.
Air Travel
The Lynchburg Regional Airport (LYH) offers daily flights to Charlotte Douglas International Airport via American Eagle, connecting passengers to a vast network of domestic and international destinations.
Public Transit
Greater Lynchburg Transit Company (GLTC) provides comprehensive bus services throughout the city, including routes serving Liberty University and other key areas.
Utilities & Taxes
Our city is served by reliable utilities and offers a competitive tax environment designed to support both growing companies and established enterprises.
Utilities
Utilities
The following utility companies proudly service the Lynchburg Metropolitan Area.
Utility Providers
|
Electricity |
American Electric Power |
|
Natural Gas |
Columbia Gas |
|
Water |
Water Resources, City of Lynchburg |
|
Sewer/WWT |
Water Resources, City of Lynchburg |
|
Solid Waste Disposal |
Region 2000 Services Authority |
|
Telecommunications |
Verizon-Virginia |
Download the City of Lynchburg 2025 Water Quality Report.
*In some cases commercial utility rates may be negotiable. Rates above based on recent published rates but are not guaranteed. Contact the utility provider for specific rates and rebates.
Taxes
Taxes
Lynchburg’s business environment is vibrant due to a sensible local and state tax codes that help foster investment and expansion. Our local taxes reflect Virginia as the fourth most tax-competitive state in the nation. In many instances, the rates below may be eligible for reimbursement or credits depending on your business, revenues or expenditures. For more information, contact the Office of Economic Development at 434-455-4491 or email melissa.dismond@lynchburgva.gov.
Corporate Income Tax
- Rate of 6%
- Unchanged in Over Forty Years
- Three-Factor Apportionment Formula of Payroll, Property and Sales (Sales Double-Weighted)
- Tax Credits for Job Creation and Investment
- No Franchise or Net Worth Tax
Sales and Use Tax
- Rate of 4.3%
- Tax on Gross Receipts from Retail Sales or Leases of Taxable Tangible
- Personal Property Manufacturers Exempt from Tax on Purchases for Production
- Distributors Exempt from Tax on Items Purchased for Resale
Local Taxes
The Commissioner of the Revenue administers local taxes in the City of Lynchburg. For local tax purposes, businesses are classified as Manufacturers or Non-Manufacturers.
All Businesses
|
Real Estate Tax |
|
|
Nominal Tax Rate per $100 of Assessed Value |
$1.11 |
|
Business Personal Property Tax |
|
|
Nominal Tax Rates per $100 of Assessed Value |
$3.80 |
|
Value Used for Tax Calculation |
Original Cost |
|
Assessment Ratio (in years) |
|
|
1-5 years old |
30% |
|
6+ years old |
25.35% |
Manufacturing Businesses
|
Machinery and Tools |
|
|
Nominal Tax Rate per $100 of Assessed Value |
$3.00 |
|
Value Used for Tax Calculation |
Original Cost |
|
Assessment Ratio (in years) |
|
|
1-5 years old |
30% |
|
6+ years old |
25.35% |
Non-Manufacturing Businesses
|
Business, Professional and Occupational License Tax |
|
|
All Businesses with Gross Receipts Less Than $10,000 |
No fee |
|
$10,001-$50,000 |
$30.00 |
|
$50,001-$100,000 |
$50.00 |
|
$100,001-$150,000 |
$160.00 |
|
Retail Merchants |
20 cents per $100 of Gross Receipts |
|
Contractor |
16 cents per $100 of Gross Receipts |
|
Business/Personal Service |
36 cents per $100 of Gross Receipts |
|
Professional Service |
58 cents per $100 of Gross Receipts |
|
Wholesale Merchant |
$20 plus 28 cents per $100 of Gross Purchases |
Hospitality & Service Sector Taxes
Local Sales and Use Tax
- Retail Sales and Leases of Tangible Property: 1%
Meals & Lodging
- Prepared Foods and Beverages: 6.5% of Sale
- Lodging for Compensation Per Room Per Night: $1 plus 6.5% of Sale
Amusement Tax
- Event or Activity Admission: 7% of Sale
Why Choose Lynchburg?
Lynchburg offers the rare combination of strategic location, skilled talent, and a deeply supportive business ecosystem. But what really sets us apart? Our commitment to partnership. When you choose Lynchburg, you’re choosing a team that’s invested in your success, from site selection to ribbon cutting and beyond.
Looking for available properties or business incentives? Explore these tools, or get in touch with our team: