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