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