Gig Workers in Richmond, VA: taxes and retirement for 2026

For rideshare and delivery drivers, shoppers and app-based workers in Richmond, VA. Virginia has a graduated state income tax for 2026: 2% to 5.75% (top rate starts at $17,000 for single filers). Here are the 2026 rules, a worked example and the official sources.

What's different in Richmond

Local income tax: No city income tax in Richmond.
Richmond Business, Professional, and Occupational License (BPOL) Tax: Every business needs a Richmond license each year, due March 1. Starting with 2026, businesses with $5,000 or less in gross receipts pay $0, those with $5,001 to $500,000 pay a flat $30, and those above $500,000 pay a rate on gross receipts ($0.58 per $100 for professional services, $0.36 for personal and repair services, $0.20 for retail, $0.19 for contractors), plus any flat fees. Late filing costs 10% or $10, whichever is greater, plus 10% annual interest.
Richmond Business Tangible Personal Property (BTPP) Tax: Business furniture, fixtures and computer equipment are taxed at $3.70 per $100 of value. The return is due March 1 and payment is due June 5.
City business license: Yes; the city says business owners must get a Richmond business license each year (within 30 days of opening) and must first get a Certificate of Zoning Compliance.
Also worth knowing: No local income tax: Va. Code § 58.1-300 bars any county, city or town from taxing income (https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-300/). The BPOL threshold rose from $250,000 to $500,000 on January 1, 2026 (ORD. 2024-187; https://rva.gov/finance-press-releases-and-announcements/news/city-richmond-launches-upgraded-rva-business-portal). The city's rate table is still headed 'Gross Receipts of $250,000 or More', but its fee table and the press release use $500,000. The city also has a two-year BPOL incentive for qualifying businesses locating in Richmond for the first time (https://rva.gov/finance/bpol-exemption). We found no city ordinance for gig, app-based or freelance workers. Population is the U.S. Census Bureau Vintage 2025 estimate for July 1, 2025 (https://www2.census.gov/programs-surveys/popest/datasets/2020-2025/cities/totals/sub-est2025.csv).

Virginia rules for gig workers

State income tax (2026): Virginia has a graduated state income tax for 2026: 2% to 5.75% (top rate starts at $17,000 for single filers). Rates are percentages and brackets are the same for all filing statuses: 2% on the first $3,000, 3% from $3,000 to $5,000, 5% from $5,000 to $17,000, and 5.75% over $17,000.
State estimated tax: Starting with 2026, you must make estimated payments (or have more withheld) if your Virginia tax after withholding and credits is expected to be more than $1,000. Single filers with expected Virginia AGI under $11,950 are exempt. May 1, June 15 and September 15, 2026, and January 15, 2027; the first installment is due May 1, not April 15. Qualifying farmers, fishermen and merchant seamen can make a single payment by January 15, 2027, or skip estimates by filing and paying in full by March 1, 2027. Form 760ES.
Local BPOL license tax (capped by Va. Code 58.1-3706): Many Virginia cities and counties tax business gross receipts under a BPOL license. State law bars the tax for businesses under $100,000 in gross receipts in localities over 50,000 people, or under $50,000 in localities of 25,000 to 50,000, although a license fee may still apply. Rates are generally capped at 58 cents per $100 for financial, real estate and professional services, 36 cents for repair, personal and business services, 20 cents for retail and 16 cents for contractors; some localities keep higher rates they had in 1978.
Presumption of employee status (Va. Code 58.1-1900): Someone paid to perform services is presumed to be an employee unless the worker or the business shows they are an independent contractor. Virginia Tax decides this using IRS guidelines.
Private lawsuit for misclassification (Va. Code 40.1-28.7:7): A worker who was wrongly classified as a contractor can sue an employer that knew about the misclassification, within three years, for wage-law damages and other relief. Workers are presumed to be employees unless the employer shows contractor status under IRS guidelines.
State retirement program: RetirePath Virginia is live. It is built around W-2 employers and does not cover 1099 contractors through the employer mandate; self-employed residents can enroll on their own.

Federal rules for 2026

Mileage is the big deduction

Business miles are deductible at the IRS standard rate: $0.725 a mile for miles driven January through June 2026 and $0.76 from July 1. Keep a log of each trip; Gigaverse lets you start and stop trips in the app.

App fees and phone

Platform service fees, a business share of your phone and plan, insulated bags and parking or tolls while working are deductible.

Self-employment tax

On top of income tax, self-employed people pay 15.3% on 92.35% of net profit: 12.4% Social Security up to the 2026 wage base of $184,500, plus 2.9% Medicare with no cap. Half of it is deductible.

Quarterly estimated taxes

No one withholds tax from self-employment income, so you generally pay estimates four times a year if you expect to owe $1,000 or more. For 2026 income the federal dates are April 15, June 15 and September 15, 2026, and January 15, 2027. Paying 100% of last year's tax (110% if your AGI was over $150,000) in four equal installments avoids the underpayment penalty.

A worked example

A driver grossing $45,000 with 15,000 business miles in 2026
Mileage deduction	$11,138
Net profit after mileage	$33,863
Self-employment tax	$4,785
Self-employment tax the mileage saves	$1,574

Miles split evenly between the two 2026 rates. Federal figures only; the mileage also lowers income tax. Computed from 2026 IRS limits (Notice 2025-67, Rev. Proc. 2025-32) and the SSA wage base.

Free tools

Mileage deduction calculator Quarterly tax calculator Best mileage tracker apps

Guides by job and platform

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Questions

Is there a local income tax in Richmond?

No city income tax applies in Richmond. Virginia has a graduated state income tax for 2026: 2% to 5.75% (top rate starts at $17,000 for single filers).

What local business taxes apply to self-employed gig workers in Richmond?

Richmond Business, Professional, and Occupational License (BPOL) Tax: Every business needs a Richmond license each year, due March 1. Starting with 2026, businesses with $5,000 or less in gross receipts pay $0, those with $5,001 to $500,000 pay a flat $30, and those above $500,000 pay a rate on gross receipts ($0.58 per $100 for professional services, $0.36 for personal and repair services, $0.20 for retail, $0.19 for contractors), plus any flat fees. Late filing costs 10% or $10, whichever is greater, plus 10% annual interest. Richmond Business Tangible Personal Property (BTPP) Tax: Business furniture, fixtures and computer equipment are taxed at $3.70 per $100 of value. The return is due March 1 and payment is due June 5.

Do I need a business license to freelance from home in Richmond?

Yes; the city says business owners must get a Richmond business license each year (within 30 days of opening) and must first get a Certificate of Zoning Compliance.

Do gig workers in Virginia pay state income tax?

Virginia has a graduated state income tax for 2026: 2% to 5.75% (top rate starts at $17,000 for single filers). Rates are percentages and brackets are the same for all filing statuses: 2% on the first $3,000, 3% from $3,000 to $5,000, 5% from $5,000 to $17,000, and 5.75% over $17,000.

When are Virginia estimated tax payments due for 2026?

Starting with 2026, you must make estimated payments (or have more withheld) if your Virginia tax after withholding and credits is expected to be more than $1,000. Single filers with expected Virginia AGI under $11,950 are exempt. May 1, June 15 and September 15, 2026, and January 15, 2027; the first installment is due May 1, not April 15. Qualifying farmers, fishermen and merchant seamen can make a single payment by January 15, 2027, or skip estimates by filing and paying in full by March 1, 2027. The state form is 760ES.

Are there other Virginia taxes for self-employed gig workers?

Local BPOL license tax (capped by Va. Code 58.1-3706): Many Virginia cities and counties tax business gross receipts under a BPOL license. State law bars the tax for businesses under $100,000 in gross receipts in localities over 50,000 people, or under $50,000 in localities of 25,000 to 50,000, although a license fee may still apply. Rates are generally capped at 58 cents per $100 for financial, real estate and professional services, 36 cents for repair, personal and business services, 20 cents for retail and 16 cents for contractors; some localities keep higher rates they had in 1978.

What Virginia laws affect independent contractors and gig workers?

Presumption of employee status (Va. Code 58.1-1900): Someone paid to perform services is presumed to be an employee unless the worker or the business shows they are an independent contractor. Virginia Tax decides this using IRS guidelines. Private lawsuit for misclassification (Va. Code 40.1-28.7:7): A worker who was wrongly classified as a contractor can sue an employer that knew about the misclassification, within three years, for wage-law damages and other relief. Workers are presumed to be employees unless the employer shows contractor status under IRS guidelines.

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Sources

State and local facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.