An Environment for Opportunity

The City of Lynchburg is rapidly growing as Central Virginia’s urban center for commerce and culture. This is evident in our expanding diverse population, our flourishing higher education institutions, and our economic growth. Read below to find out more about why Lynchburg is thriving.

Median Age is 28.3, with 58% of the population age 34 and under. 46.2% of the population have an associates or bachelor’s degree or higher.

2020 POPULATION IS 79,009, A 4.5% INCREASE SINCE 2010. LYH is projected to grow 22% by 2040.

LARGEST EMPLOYMENT SECTORS INCLUDE: Health Care, Manufacturing, Retail and Accommodation and Food Services.

Cost of Living is 13.3% lower than the national average, and average annual wages increased by 6.3% in 2021.

Location and Transportation

Lynchburg is at the heart of Central Virginia, sited near the geographic center of the Commonwealth. This principal locality is contributing to the city’s status as the economic hub of the region. Nestled in the foothills of the Blue Ridge Mountains and bounded by the James River, Lynchburg is a prime location for pristine environment.

East of Lynchburg is the capital of Richmond, which is a short drive away. Also, North of Lynchburg is Washington, D.C. which is a quick train ride or drive. The major east coast shipping hub, the Port of Hampton Roads, can be reached in a matter of hours by rail or road.

Economic Profile

Utilities & Taxes



The following utility companies proudly service the Lynchburg Metropolitan Area.

Utility Providers



American Electric Power

Natural Gas

Columbia Gas


Water Resources, City of Lynchburg


Water Resources, City of Lynchburg

Solid Waste Disposal           

Region 2000 Services Authority




Download the City of Lynchburg 2020 Annual Report and the 2022 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.



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

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        



Business Personal Property Tax

Nominal Tax Rates per $100 of Assessed Value       


Value Used for Tax Calculation

Original Cost   

Assessment Ratio (in years)


1-5 years old


6+ years old



Manufacturing Businesses

Machinery and Tools

Nominal Tax Rate per $100 of Assessed Value       


Value Used for Tax Calculation

Original Cost

Assessment Ratio (in years)


1-5 years old


6+ years old



Non-Manufacturing Businesses

Business, Professional and Occupational License Tax

All Businesses with Gross Receipts Less Than $10,000         

No fee







Retail Merchants

20 cents per $100 of Gross Receipts


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