Fairfax City Among Best Places for Small Business Owners In VA

FAIRFAX CITY, VA —Fairfax City ranks high among Virginia localities for the best places for small business owners, according to a new SmartAsset study.

SmartAsset ranked localities using three factors: the proportion of people in a county with small business income, how much business income they reported, and the potential income tax a resident pays. Those three factors were equally weighted when determining the small business index score.

For the first two factors, the analysis looked at the number of tax returns that report small business income compared to the total tax-filing population of that area. SmartAsset then compared the total small business income to the overall income reported in that area.

To determine the third factor, SmartAsset used the national median household income with relevant deductions and exemptions. Then, the study calculated federal, state and local income taxes for each location. Because Virginia does not have local income taxes, the income tax amounts calculated for all localities were the same: $11,032.

With small business returns of 26.87 percent, Fairfax City was ranked 13th compared to other Virginia localities.

Rappahannock County ranked first overall with the highest percentage of small business returns — 35.83 percent. Among Fairfax City's neighboring jurisdictions, Falls Church City ranked third overall, followed by Fairfax County in the fourth slot, Loudoun County in seventh, Alexandria in ninth, and Arlington County in 14th.

The full study from SmartAsset can be viewed here.