| According to the 2004 U.S. Bureau of Economic | | | | extensively by most notably the United States Navy, |
| Analysis report, Virginia’s gross state | | | | as well as by NASA and has the largest concentration |
| product was $326.6 billion. The per capita personal | | | | of military bases and facilities of any metropolitan area |
| income was $35,477 in 2004. | | | | in the world. |
| In 2006 Forbes Magazine voted Virginia as having the | | | | Technology |
| best climate for business in the United States citing | | | | Computer chips became the state's highest-grossing |
| economic growth, business costs/incentives and quality | | | | export in 2006 surpassing its traditional top exports of |
| of life. | | | | coal and cigarettes, combined. |
| Virginia's economy is well balanced with diverse | | | | The state's biotechnology industry is not centralized, |
| sources of income. From the Hampton Roads area to | | | | but growing, highlighted by the building of the Virginia |
| Richmond and down to Lee County in the southwest | | | | BioTechnology Research Park biotech incubator and |
| includes military installations, cattle, tobacco and peanut | | | | the opening of the lauded Janelia Farm Research |
| farming in Southside Virginia. Soy recently surpassed | | | | Campus. |
| tobacco as the most profitable crop in Virginia. | | | | Hampton Roads is currently the third-largest center of |
| Wineries and vineyards in the Northern Neck and along | | | | the emerging modeling and simulation industry in the |
| the Blue Ridge Mountains also have become | | | | U.S. behind Orlando and Huntsville, Alabama. |
| increasingly popular. Northern Virginia (once considered | | | | Taxation |
| the state's dairy capital) hosts software, | | | | Virginia collects personal income tax in five income |
| communications, consulting, defense contracting, | | | | brackets, ranging from 3.0% to 5.75%. The sales and |
| diplomats, and considerable components of the | | | | use tax rate is 5%. The tax rate on food is 1.5%. |
| professional government sector. Loudoun and Fairfax | | | | There is an additional 1% local tax, for a total of a 5% |
| counties in Northern Virginia have the highest and | | | | combined sales tax on most Virginia purchases and a |
| second highest median household income, respectively, | | | | combined tax rate of 2.5% on food. Virginia's property |
| of all counties in the United States as of 2006.[citation | | | | tax is set and collected at the local government level |
| needed] | | | | and varies throughout the commonwealth. Real estate |
| There are seven Fortune 500 companies | | | | is taxed at the local level based on 100% of fair |
| headquartered in Northern Virginia, and nine in the | | | | market value. Effective true tax rates on real estate |
| Richmond area (most of which are within the city | | | | vary and are set by locality. Tangible personal property |
| itself). | | | | also is taxed at the local level and is based on a |
| Virginia, arguably the wealthiest southern state before | | | | percentage or percentages of original cost. Tangible |
| the Civil War, recovered from the Civil War and the | | | | personal property includes, but is not limited to, |
| Great Depression much faster than the rest of the | | | | machinery and equipment, furniture, fixtures, and trucks |
| South. Today, Virginia is one of the wealthiest states in | | | | and automobiles. The Virginia General Assembly |
| the South. | | | | exempted intangible personal property from taxation in |
| Federal Government | | | | 1984 by making the tax rate zero. Virginia does not |
| Well-known government agencies headquartered in | | | | collect inheritance taxes; however, its estate tax is |
| the state include the Central Intelligence Agency and | | | | decoupled from the federal estate tax laws, and |
| Department of Defense. Northern Virginia is a bastion | | | | therefore the Commonwealth imposes its own estate |
| of federal spending[4], particularly with regards to | | | | tax. |
| defense contracting. Hampton Roads is used | | | | |