What rate is my BPOL tax based on?

Why this matters now: BPOL is a Loudoun-specific operating cost based on gross receipts, not profit. Misclassification or missed registration can surprise a growing business precisely when revenue crosses the local threshold.

Loudoun’s Business, Professional and Occupational License tax is based primarily on what the business does and its gross receipts, not on its net profit.

For most new businesses outside an incorporated town, the first-year tax is $30. After the first year, a business reports the prior calendar year’s gross receipts. If receipts are $200,000 or less, the tax generally remains $30. Above that threshold, the county applies a rate per $100 of gross receipts according to classification.

Current rates include 13 cents per $100 for contractors and developers, 17 cents for business services, 17 cents for retail merchants, 23 cents for personal services, 33 cents for professional services and 16 cents for commercial or residential rental by owner. Wholesale merchants are treated differently: the published rate is five cents per $100 of gross purchases. A company with more than one line of business may need guidance on whether receipts should be separated or assigned to a principal classification.

Classification matters because BPOL taxes revenue before deductions. A professional-services firm with $1 million of taxable gross receipts at 33 cents per $100 would calculate $3,300 before considering penalties, adjustments or special rules. Its payroll and other expenses do not reduce that gross-receipts base.

All businesses, including home-based businesses, must register within 30 days of beginning operations. Loudoun’s 2026 filing and payment deadline was March 2 because March 1 fell on a weekend; businesses should verify the date each year. Late registration or filing can trigger a 10% penalty. Home-based businesses with gross receipts of $10,000 or less are exempt from the $30 license fee, but still must report annually and register business personal property.

Businesses inside an incorporated town should contact that town for business-license requirements while still addressing county business personal property obligations. Contractors working in Loudoun may have county registration duties even when their office is elsewhere.

The most useful step is to describe the actual revenue-producing activities to the Commissioner of the Revenue, rather than selecting a category because its name or rate appears favorable. Review the classification whenever services change, a new revenue line is added or the business moves.

BPOL should be included in pricing and cash forecasts. It is small relative to many costs, but because it follows gross receipts, rapid growth can raise the bill even when profit remains thin.

Action checklist

• Confirm classification with the Commissioner of the Revenue using a precise description of activities.
• Track gross receipts by business line and jurisdiction throughout the year.
• Include BPOL in pricing and set aside cash before the annual filing deadline.

References and resources

• Loudoun Business Tax Rates
• Loudoun Business License Tax
• Loudoun Business Taxes and Filing Deadlines
• Starting a Business in Loudoun County