Martinsville-Henry County offers a variety of tax incentives for qualified companies that are considering relocating or expanding their business in the community. Our tax incentives are designed to help give companies a competitive advantage and the means to expand and succeed.

Local Tax Rates

Local taxes are paid for EITHER Henry County or the City of Martinsville, BUT NOT BOTH.

Henry County
Tax Cost per $100 of Assessed Value
Real Estate Tax $0.555
Machinery/Tools Tax
Assessed at 97% yr 1, 87% yr 2, 77% yr 3, 67% yr 4, 57% yrs 5+		 $1.55
Business Equipment
Assessed at 97% yr 1, 87% yr 2, 77% yr 3, 67% yr 4, 57% yrs 5+		 $1.55
Computer Equipment
Assessed at 71% yr 1, 60% yr 2, 50% yr 3, 40% yr 4, 30% yr 5, 20% yrs 6+		 $1.55
City of Martinsville
Tax Cost per $100 of Assessed Value
Real Estate Tax $1.03975
Machinery/Tools Tax
(assessed at 90% yr 1, 80% yr 2, 70% yr 3, 60% yr 4, 50% yr 5, 40% yr 6, 30% yr 7, and 25% thereafter)		 $1.85
Business Equipment Tax
(assessed at 90% year 1, 80% yr 2, 70% yr 3, 60% yr 4, 50% yr 5, 40% yr 6, 30% yr 7, and 25% thereafter)		 $2.30
Computer Equipment
(assessed at 70% in the current year, 50% yr 1, 30% yr 2, 15% yr 3, 10% yr 4, and 5% yrs 5+)		 $2.30

Sales and Use Tax

  • Total Tax of 6.3% (4.3% state tax and 2% local tax)
  • A seller is subject to a sales tax on gross receipts derived from retail sales or leases of taxable tangible personal property
  • Manufacturers do not pay tax on purchases used for production; distributors do not pay tax on items purchased for resale
  • The State of Virginia has NO TAX on: intangible property, manufacturers’ inventory, and manufacturers’ furniture, fixtures, and corporate aircraft

Corporate Income Tax

  • Tax rate of 6%, not raised in thirty years
  • Has a three-factor apportionment formula of payroll, property, and sales (with sales double-weighted)
  • A double-weighted sales factor, which has the effect of reducing tax liability for firms with significant sales to customers outside Virginia
  • Tax credits for job creation and investment in economically stressed areas
  • No franchise or net worth tax