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Tax Technology in Virginia involves the application of software, data analytics, and automation tools to manage and optimize state and local tax compliance, reporting, and planning processes. This includes implementing and maintaining tax engines, e-filing solutions, and data management systems to ensure accuracy and efficiency.
Virginia imposes a 6.0% corporate income tax rate, a 5.3% state sales and use tax rate (with local additions bringing total rates to 5.3% in most of the state, higher in some localities like Northern Virginia at 6.0% and Hampton Roads at 7.0%). Businesses frequently leverage technology for managing these filings with the Virginia Department of Taxation (VA Tax) and various local government agencies for property taxes. The state encourages electronic filing for many tax types.