Property tax in Virginia is a local matter. Every county, city, and independent town sets its own rate, sends its own bill, and keeps the revenue to pay for schools, roads, and public safety. The state in Richmond plays almost no direct role. Two kinds of property get taxed: real estate (land and buildings) and tangible personal property, which for most households means the annual car tax. Your bill, your deadlines, and the relief you can claim all depend on where you live.
How Your Real Estate Bill Is Calculated
Every parcel of land and every building in Virginia must be assessed at fair market value, meaning the price a willing buyer would pay a willing seller in an ordinary sale.1Virginia Code Commission. Constitution of Virginia – Article X Section 2 – Assessments Local commissioners of the revenue or appointed assessors do the work. Cities with more than 30,000 residents must reassess at least every two years; smaller counties can stretch the cycle to five or six years, and any locality may choose to reassess annually.2Virginia Code Commission. Virginia Code 58.1-3250 – Reassessment and Assessment Cycles
The tax itself is the assessed value multiplied by the local rate, expressed per $100 of value. A home assessed at $350,000 in a locality with a $1.10 rate owes $3,850 for the year. Rates vary widely. Fairfax County’s base real estate rate for 2026 is $1.1225 per $100,3Fairfax County. Real Estate Tax Rates and other localities sit higher or lower. The rate is set each year by the board of supervisors or city council during budget season.
The Car Tax and Personal Property Tax
Virginia is one of the few states that taxes tangible personal property locally. For most residents this shows up as an annual car tax covering motor vehicles, trailers, motorcycles, and boats that are normally garaged or parked in the locality. Assessors must use a recognized pricing guide to keep valuations consistent, and most localities use the NADA guide for vehicles.4Virginia Code Commission. Virginia Code 58.1-3524 – Tangible Personal Property Tax Relief
Personal Property Tax Relief
The Personal Property Tax Relief Act, originally passed in 1998, offsets part of the car tax on qualifying personal-use vehicles. The state puts up a fixed $950 million each year, divided among localities on a formula frozen to 2005 levels.4Virginia Code Commission. Virginia Code 58.1-3524 – Tangible Personal Property Tax Relief Each locality sets a reduced rate that applies to the first $20,000 of a qualifying vehicle’s assessed value; anything above $20,000 is taxed at the full local rate. Because the state’s share is capped, the percentage of relief you actually see varies by locality, and it appears on your bill as a line-item credit.
What Happens When You Move
If you move a vehicle into or out of a Virginia locality mid-year, the tax may be prorated by the month, but only if the locality has adopted a proration ordinance. More than half a month counts as a full month; less than half does not count at all.5Virginia Code Commission. Virginia Code 58.1-3516 – Proration of Personal Property Tax If you sell or transfer a vehicle after the tax day, the locality must refund or credit the prorated amount within 30 days, though refunds under five dollars are not issued unless you ask. Not every locality prorates. Moving from a prorating locality to a non-prorating one at the wrong time can leave you paying a full year to both, so check both jurisdictions before the move.
Exemptions for Disabled Veterans and Surviving Spouses
Virginia’s Constitution grants a complete real estate tax exemption to veterans with a 100% service-connected, permanent, and total disability rating from the U.S. Department of Veterans Affairs, provided the veteran occupies the property as a primary residence. The exemption extends to a qualifying veteran’s surviving spouse as long as the spouse does not remarry, and the surviving spouse keeps the exemption even after moving to a different home.6Virginia Code Commission. Constitution of Virginia – Article X Section 6-A – Property Tax Exemption for Certain Veterans and Surviving Spouses
To claim it, file an affidavit with your local commissioner of the revenue identifying the property, confirming it is your primary residence, and attaching documentation from the VA showing the 100% permanent and total rating.7Virginia Code Commission. Virginia Code 58.1-3219.6 – Application for Exemption You can download a benefit summary letter straight from VA.gov to satisfy that requirement.8Veterans Affairs. Download VA Benefit Letters You only need to refile if you move. Surviving spouses must also document that the veteran’s death occurred on or after January 1, 2011. A separate provision covers surviving spouses of service members killed in the line of duty, with no income or net worth test.
Tax Relief for Seniors and People With Disabilities
Every Virginia locality is authorized to offer property tax exemptions or deferrals for homeowners who are at least 65 or permanently and totally disabled, but these programs are optional and each locality sets its own rules.9Virginia Code Commission. Virginia Code 58.1-3210 – Exemption or Deferral of Taxes for Certain Elderly and Disabled Individuals State law sets ceilings localities cannot exceed: adjusted gross income generally cannot top $50,000 for single filers or $75,000 for joint filers, though localities can exclude certain disability income and income from other relatives in the household. Many localities set their limits below the state maximums.
Net worth caps, which exclude the value of the home itself, also vary. Ranges from roughly $200,000 to $400,000 are common. Participants typically file an annual application or affidavit with the local treasurer or commissioner of the revenue to verify eligibility. If you are close to any limit, read your locality’s ordinance carefully; the exclusions for disability income and household members’ earnings can be the difference between qualifying and not.
Paying Your Tax Bill
Most Virginia localities split both real estate and personal property tax into two installments, commonly due on June 5 and December 5.10Henrico County, Virginia. Important Tax Dates Your bill will include a property account number or parcel ID that you need for any payment. Payments go to the local treasurer, not to the state.
You can mail a check with the payment voucher, pay in person at a local government center, or use your locality’s online portal. Credit and debit card payments typically carry a convenience fee around 2% to 2.5% of the transaction.11Fairfax County, Virginia. Service Fees Electronic bank transfers (ACH) are often free.
If Your Mortgage Has an Escrow Account
When your mortgage includes escrow, your lender collects a portion of the estimated annual property tax with each monthly payment and pays the bill for you. Federal rules require the servicer to analyze the escrow account at least once a year and send you a statement within 30 days of the end of the computation year.12Consumer Financial Protection Bureau. Escrow Accounts If your assessment or the tax rate rises, the servicer may find a shortage and raise your monthly payment to cover it. You are entitled to see the analysis and the math. Even with escrow, you remain responsible if the servicer fails to pay on time, so confirm payments are reaching the treasurer.
Appealing an Assessment You Think Is Too High
If you believe your property is overvalued, you have three ways to push back, and the assessor’s number is not the last word.
The simplest first step is an informal review by the commissioner of the revenue or the assessor’s office. Staff will compare your property to recent sales of similar homes and check the accuracy of the data on file, including square footage, lot size, and room count. Deadlines vary by locality but typically fall within a few months of the assessment notice, and the office usually responds within 90 days.
If the informal review does not resolve things, you can appeal to the local Board of Equalization, a quasi-judicial body separate from the assessor’s office. You present evidence that your property is overvalued or inequitably assessed compared to similar homes, and an appraiser explains the valuation. The board can lower, sustain, or raise your assessment, so bring comparable sales data.
A property owner who disagrees with the board can file suit in circuit court. That step usually calls for an attorney and makes sense only when meaningful dollars are at stake. The court reviews the evidence independently and can order a new assessment.
What Happens If You Don’t Pay
Missing the December 5 deadline triggers a penalty of 5% of the amount due under the default state statute, though many localities have adopted higher penalty schedules by ordinance.13Virginia Code Commission. Virginia Code 58.1-3915 – Penalty for Failure to Pay Taxes by December 5 Interest starts accruing after the due date at up to 10% per year for the first year. For later years of delinquency, the rate can climb to the greater of 10% or the IRS underpayment rate.14Virginia Code Commission. Virginia Code 58.1-3916 – Counties, Cities, and Towns May Provide Dates for Filing
A tax lien automatically attaches to real estate. If taxes remain delinquent past December 31 of the second year after they were due, the locality can start a judicial sale of the property to collect what is owed.15Virginia Code Commission. Virginia Code 58.1-3965 – When Land May Be Sold for Delinquent Taxes For condemned or blighted structures the clock shortens to one year. The locality must send written notice to the owner at least 30 days before filing suit.
You can stop the process by paying all accumulated taxes, penalties, interest, attorney fees, and costs at any time before the sale date. Partial payments alone will not halt the proceedings.15Virginia Code Commission. Virginia Code 58.1-3965 – When Land May Be Sold for Delinquent Taxes If you cannot pay in full, the treasurer can agree to an installment plan of up to 72 months and suspend the sale action while you keep up with it. If you are behind and receive a notice, do not ignore it; the installment option disappears once the sale goes through.
Federal Deduction for Virginia Property Tax
Virginia real estate and personal property taxes are deductible on your federal return if you itemize, under 26 U.S.C. § 164, but the state and local tax (SALT) deduction is capped. For the 2026 tax year, the total SALT deduction — which bundles property taxes with state income taxes — is limited to $40,400 for most filers, or $20,200 if married filing separately.16Office of the Law Revision Counsel. 26 USC 164 – Taxes The cap applies if your modified adjusted gross income is under $500,000; above that, it phases down. Under current law, the cap rises 1% each year through 2029.
In Northern Virginia and other high-cost areas where state income and property taxes together easily top $40,000, this cap means not every dollar you pay produces federal tax savings. Keep it in mind when comparing localities with very different real estate rates.