Williamsburg Tax Rates: Property, Sales, Meals, and Lodging

The City of Williamsburg, Virginia tax rates include a real estate tax of $0.62 per $100 of assessed value, a personal property tax of $3.50 per $100, a 7% sales tax, a 6.5% meals tax, and a 7% lodging tax with an additional $2 flat fee per night. The city council sets these rates each year through the budget process, and the fiscal year runs July 1 through June 30.

Real Estate Tax

Land and buildings in Williamsburg are taxed at $0.62 per $100 of assessed value, which the city reports as the lowest real estate tax rate of any independent city in Virginia.¹ Residential and commercial properties are reassessed annually so values track the current market. A home assessed at $350,000 owes $2,170 for the full fiscal year.

Owners pay in two installments. The first is due December 1, and the second is due June 1.²

Personal Property Tax

Vehicles, motorcycles, boats, and other tangible personal property are taxed at $3.50 per $100 of assessed value.³ Vehicle values come from the National Automobile Dealers Association average loan value, applied uniformly as Virginia law requires, though the commissioner of revenue must consider property condition upon request.⁴

The bill is due on or before December 1 each year. To be subject to the tax, a vehicle must have its tax situs within the city on January 1, meaning it is normally garaged or parked inside city limits on that date. The Virginia Personal Property Tax Relief Act offsets part of the tax on the first $20,000 in assessed value for qualifying vehicles, and the credit appears directly on the bill.

Sales Tax in the Historic Triangle

Williamsburg sits inside Virginia’s Historic Triangle, which carries a combined sales and use tax rate of 7%.⁵ The total is layered: 4.3% state, 0.7% Hampton Roads regional, 1.0% Historic Triangle regional, and 1.0% local option.⁶ Most of Virginia pays 5.3%, so shoppers in Williamsburg pay 1.7 percentage points more. Businesses collect the tax at the point of sale and remit it to the state, which distributes the local and regional shares.

Meals Tax

As of February 1, 2026, the meals tax is 6.5% on gross sales of prepared food and beverages. The Williamsburg City Council voted in January 2026 to raise the rate by 1.5 percentage points from the previous 5%.⁷ It applies to restaurants, cafes, catering operations, and similar establishments serving prepared food, and operators remit it to the city monthly.

Lodging Tax

Hotels and short-term rental operators collect a transient occupancy tax of 7% of the amount paid for lodging, plus a flat $2.00 per night.⁸ The per-night fee does not apply to travel campground sites or to rooms occupied continuously by the same person for 30 days or more. Half of the revenue from the $2-per-night charge goes into the Historic Triangle Marketing Fund, and the city keeps the rest.

Business License Tax

Any business operating inside the city needs a Williamsburg business license, and the license tax is calculated on gross receipts at rates that vary by industry:⁹

Retail sales: $0.20 per $100 of gross receipts
Wholesale sales: $0.05 per $100
Professional services: $0.58 per $100
Other services (business, personal, and repair): $0.36 per $100
Contractors: $0.16 per $100

The minimum fee for issuing a business license is $30. Businesses also pay personal property tax at $3.50 per $100 of assessed value on equipment and other tangible assets, the same rate that applies to vehicles.¹

Late Payment Penalties and Interest

Missing a Williamsburg tax deadline is expensive. The city imposes a 10% penalty on any delinquent installment the day after it comes due, with a minimum penalty of $10. Interest then accrues at 10% per year on the unpaid balance and the penalty, starting the first day of the month after the tax was due and running until the bill is paid in full.¹⁰ On a $2,170 real estate tax bill, a single missed $1,085 installment triggers a $108.50 penalty immediately, plus roughly $9 in interest for every month it sits unpaid.

Relief for Older and Disabled Homeowners

Williamsburg offers a tax deferral program that lets qualifying homeowners postpone real estate tax payments rather than pay them in full each year. To be eligible, you must be at least 65 years old or permanently and totally disabled, and the property must be your sole dwelling.¹¹ The program also applies income and net worth limits, which the city updates each year under Virginia’s enabling statute.¹² For the FY 2027 program, net financial worth as of December 31, 2025 cannot exceed $344,752, excluding the home and up to ten acres of land, and applications are due to the Real Estate Assessment Office by December 1, 2026.

Deferral is not forgiveness. Interest accrues at 2% simple interest during each year of deferral, and the full deferred balance plus accumulated interest becomes due when the property is sold or within one year of the owner’s death, recovery, or other disqualifying event.¹⁰ Heirs or new owners are responsible for the accumulated amount at the time of sale or transfer.

1
City of Williamsburg Economic Development. City Business License and Local Taxes
2
Virginia Code Commission. Virginia Code 58.1-3916 – Counties, Cities, and Towns May Provide Dates for Filing
3
City of Williamsburg, Virginia. Personal Property Tax
4
Virginia Code Commission. Virginia Code 58.1-3503 – General Classification of Tangible Personal Property
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City of Williamsburg, Virginia. Virginia Sales Tax
6
Virginia Tax. Tax Bulletin 18-3 – Retail Sales and Use Tax Rate, Historic Triangle
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City of Williamsburg, Virginia. Finance Business Taxes
8
Municode Library. Code of Ordinances – City of Williamsburg, Virginia, Article VII – Transient Lodging Tax
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City of Williamsburg, Virginia. Business Licenses and Taxes
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Municode Library. Code of Ordinances – City of Williamsburg, Virginia, Article III – Real Estate Assessment
11
City of Williamsburg, Virginia. Tax Deferral Program
12
Virginia Code Commission. Virginia Code 58.1-3210 – Exemption or Deferral of Taxes on Property of Certain Elderly Individuals and Individuals With Disabilities