Value types directly contain their data which are either allocated on the stack or allocated in-line in a structure. Reference types store a reference to the value's memory address, and are allocated on the heap. Reference types can be self-describing types, pointer types, or interface types. Variables that are value types each have their own copy of the data, and therefore operations on one variable do not affect other variables. Variables that are reference types can refer to the same object; therefore, operations on one variable can affect the same object referred to by another variable. All types derive from the System.Object base type.
Value types are stored in stack part of the memory. Reference type are stored in managed heap. Let have a look at the example for better understanding.
Int iCount = 0; \\ Value Type
int NewiCount = iCount; \\ Reference Type