Real Estate Tax Rates in Virginia: What Homeowners Should Know
- Matt Brennan, CFP®
- 23 hours ago
- 17 min read
Maybe a reassessment notice just landed and the number is bigger than last year. Maybe you are weighing a move to Virginia, or a downsize across town. Either way, real estate tax is a bill you pay every year of retirement. It belongs in your plan, not in the surprise column.
Disclosure: The scenarios included are hypothetical illustrations used to demonstrate planning concepts. They do not represent the experience of actual clients. Hypothetical financial planning illustrations have inherent limitations, including that they are prepared with the benefit of hindsight and do not reflect actual results of any specific client situation.
For retirees and near-retirees with substantial assets, these are important questions to ask. Here is how the tax works, what it costs in different parts of Virginia, and how to keep more of your money.
The short overview: Virginia has no statewide rate for real estate tax
Virginia has no statewide property tax rate. Each county, city, and town sets its own rate, expressed per $100 of assessed value. The 2024 statewide nominal average was $0.9184 per $100, with an estimated effective rate of $0.6904 (Virginia Department of Taxation, 2024 Assessment/Sales Ratio Study). Local rates range roughly from $0.33 to $1.43 per $100.
Key takeaways
There is no state property tax rate. The rate is set locally, so always check your own county or city.
Your tax equals your assessed value (100% of fair market value) divided by 100, times your local rate.
Homeowners age 65 and older, or those with disabilities, may qualify for local relief.
A veteran with a 100% service-connected permanent and total disability may owe no real estate tax on a principal residence - with no age or income test.
You can appeal an assessment, but the burden of proof is on you. Rates reset every year, so always verify your locality's current adopted rate.
Where you retire in Virginia changes the bill. On a $600,000 home, the gap between a $0.62 and a $0.83 rate is about $1,260 a year.
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How Virginia real estate tax is actually calculated
Virginia keeps this tax entirely local. There is no single state rate to look up. Instead, your county, city, or town assesses your home, sets a rate, and sends the bill. To read your own number correctly, you need three ideas.
First, the value. Virginia assesses real estate at 100% of fair market value - in plain terms, what the property would likely sell for. This standard has applied since 1977 (Code of Virginia §58.1-3201).
Second, the rate. Localities express the rate per $100 of assessed value. There is no statewide rate. Roughly 95 counties and around 38 independent cities each set their own (Virginia Department of Taxation, Property Tax and Real Estate Tax Questions).
Third, who runs it. Two local officials share the job. The Commissioner of the Revenue (or a local assessor) sets your assessed value. The Treasurer collects the tax. That split matters when you have a question: value disputes go to the assessor, and payment questions go to the Treasurer.
You may also hear two kinds of "rate." The nominal rate is the published rate per $100. The effective rate adjusts for how closely assessments track actual market value prices.
It is often lower, because assessed values can lag the market (Virginia Department of Taxation, 2024 Assessment/Sales Ratio Study). Lagging assessment ratios cause effective rates to differ from the nominal rates. If you want to see how this fits a broader plan, this guide to Virginia retirement taxes walks through the pieces together.
A worked example: rate divided by 100, times assessed value
The math is simple once you have the two numbers. Take your assessed value, divide by 100, and multiply by your local rate.
Say a home is assessed at $450,000 and the local rate is $0.83 per $100. That is $450,000 divided by 100 = 4,500, times $0.83 = $3,735 per year (Virginia Department of Taxation).
This is arithmetic for illustration, not an estimate for any specific home. Rates reset annually, so verify your locality's current adopted rate before you rely on any figure.
What the rate is - and why it differs by county or city
There is no one Virginia rate, and the spread is wide. Two homes of the same value can carry very different bills simply because they sit in different jurisdictions.
That is why "what are Virginia real estate tax rates" is the wrong question. The right question is "what is the real estate tax rate for my locality."
The county-versus-independent-city quirk that trips up relocators
Virginia has something most states do not: independent cities. An independent city is its own taxing jurisdiction, fully separate from the county around it. So a home a few miles away can fall under a completely different rate.
The clearest example sits in the Historic Triangle. The City of Williamsburg has a rate of $0.620 per $100 for 2025. James City County, which wraps around much of it, sits at $0.830 per $100 (both are 2025 nominal rates; confirm the current adopted rate with each locality).
Same region, different governments, different bills. If you are relocating within Virginia, confirm which jurisdiction a home actually sits in before you compare rates.
What the rate gap costs over a 30-year retirement
Put real numbers on it. Say you are choosing between two homes, each assessed at $600,000. One sits in the City of Williamsburg, at $0.620 per $100. The other sits in James City County, at $0.830.
The Williamsburg bill runs about $3,720 a year. The James City County bill runs about $4,980. That is roughly $1,260 more each year for the same $600,000 of value.
Over a 30-year retirement, that gap is about $37,800 before any change in rates or assessments — and both change. This is why property tax belongs in your cash-flow plan as a recurring line, not filed away as a one-time closing cost.
This is arithmetic on two published 2025 nominal rates, not a projection for any specific home. Confirm each locality's current adopted rate before you rely on a figure.
Why downsizing may not cut your property tax as much as you expect
Downsizing is usually pitched as an expense cut, and often it is. But your real estate tax follows assessed value and your locality's rate. It does not follow square footage.
Trade a $900,000 house in a $0.62 locality for a $600,000 condo in a locality at $0.95 per $100. That higher rate is still within Virginia's range. Your bill barely moves — about $5,580 before, about $5,700 after. You cut the house in half and the tax went up.
Two more downsizing details matter if you are 65 or older:
Relief does not travel with you. Age-based and disability relief is granted locality by locality, under each one's own ordinance. A move means applying again under new limits, and you may not qualify where you land.
The sale itself can spike your income. A large taxable gain on a long-held home lands in a single tax year. That can push you over your new locality's income limit for relief. It depends on how that locality defines income — the same timing trap covered below.
Why your assessment changed - and what is the process to appeal it
A bigger assessment usually means a bigger bill. In recent years, many Virginia homeowners have opened notices with double-digit jumps. You can challenge an assessment you believe is too high. But you should understand how the process works and where it can work against you before you start.
In Virginia, the burden of proof is on you, the owner. The assessor's value is presumed correct. It is your job as the taxpayer to show the assessment either exceeds fair market value or is not uniform with comparable properties (Code of Virginia §58.1-3379).
An appeal may lower your assessment, and therefore your tax. But there are no guarantees, and the outcome depends on the evidence you bring.
One honest warning: the Board of Equalization can raise, lower, or leave an assessment unchanged. (Henrico Real Estate Assessment Appeal). So an appeal is not risk-free, and it costs time.
Virginia is a "disclosure" state, meaning sale prices are part of the public record. That makes strong comparable sales easier to assemble for your evidence record. These final sale prices can be found in different places depending on the relevant locality.
Consider a hypothetical couple, both age 68 and retired, in a Henrico County home.
Their assessment jumped from $520,000 to $600,000 in a single cycle - a $664 increase in their annual bill at the county rate. A formal appraisal would run around $500.
Before filing anything, they weighed that likely savings against the appraisal cost and the time involved. They also pulled recent nearby sales to test whether the new $600,000 value was really out of line. If the comparable sales came in closer to $540,000, their case may reduce the assessment enough to make the appraisal worth it.
If the sales supported the county's number, the smarter move might be to skip the appeal. That weighing - is the case strong enough, and is the savings worth the effort - is the real work of an appeal.
This is a hypothetical illustration, not a description of an actual client or a promised result.
Reassessment cycles and the "101%" rollback rule
Assessments do not change at random. Virginia law sets minimum reassessment cycles. Cities must reassess at least every two years, and counties at least every four years.
Cities smaller than 30,000 in population may elect by majority vote of council to conduct general reassessments every four years. Some smaller localities may vote to raise the interval up to six years (Code of Virginia Article 5 §58.1-3250-3252).
When your locality reassesses, rising home values can push assessments - and bills - up across the board.
There is a built-in check, though. Sometimes a reassessment raises a locality's total real property tax by 1% or more. When that happens, under Code of Virginia §58.1-3321, the locality must lower its rate so the total comes to no more than 101% of the prior year.
It can keep the higher rate only if it advertises it and holds a separate public hearing. This "101%" or "truth-in-taxation" rule is why rate debates flared in Virginia in 2024 and 2025. It also means a public hearing is your chance to be heard before a rate is set, avoiding a silent rate increase for residents.
The appeal ladder and who bears the burden of proof
If you decide to challenge your assessment, the path in most localities runs in three steps:
Informal review. Start with the Commissioner of the Revenue or the local assessor's office. Many disagreements are resolved here, without a formal hearing.
Board of Equalization. If the informal review does not fix it, you can take your case to the local Board of Equalization, which can raise, lower, or affirm the value (Code of Virginia §58.1-3378 and §58.1-3379).
Circuit Court. If you still disagree, you can appeal to your local Circuit Court (Code of Virginia §58.1-3984).
For example, in Hanover County, real estate assessments are reviewed each January, informal appeals are heard in January, and then formal appeals are due by March 15th. (Hanover Appeal My Real Estate Assessment). Deadlines are set locally, not statewide, and they can be tight. Check the appeal deadline printed on your assessment notice as soon as it arrives - missing it can cost you the year.
Tax relief for homeowners 65 and older and those with disabilities
This is where many affluent retirees miss out. Virginia allows - but does not require - each locality to offer real estate tax relief. It is aimed at homeowners who are 65 or older, or who are permanently and totally disabled (Code of Virginia §58.1-3210).
There is no single statewide senior exemption. Each locality sets its own age (at least 65), income, and net-worth limits by ordinance. So the rules where you live may differ from your friends or family a county away.
It is important to be careful with the round numbers you see online. Some aggregator sites quote flat caps, for example "$50,000 income / $75,000 net worth". Those can be default fallback figures that apply only where a locality is silent—not a universal statewide rule. Your locality's actual limits are the ones that matter, and you can get them from your Commissioner of the Revenue or Department of Tax Administration website.
A few practical points that general lists can miss:
Deadlines commonly fall between February and May 1, and many localities require you to reapply each year. Some run a three-year cycle with a certification in between (Code of Virginia §58.1-3213).
Relief can be prorated when not all the owners on the deed qualify (Code of Virginia §58.1-3211.1).
Relief is under-claimed. Localities are required to advertise relief on the tax bill (Code of Virginia §58.1-3213.1), yet many eligible homeowners never apply. If you are 65 or older, it is worth checking your local rules, even if you think your assets are too high.
Because these limits and rules are local and change over time, verify your figures with your locality, and consult your own tax professional or financial advisor about your specific situation.
Exemption, deferral, or an assessment freeze: knowing the difference
Relief is not one thing. Localities may offer different tools, and choosing well is where planning pays off:
Exemption reduces or eliminates the tax you owe for the year. It is the most direct form of relief.
Deferral lets you postpone paying all or a portion of the real estate tax that exceeds 105% of the real estate tax owed on that property the previous tax year. The deferred amount is repaid when the home is sold, transferred, or from the estate within one year after the death of the owner. (Code of Virginia Article 2.1).
This can suit an owner who is cash-poor today but plans to keep the home. Be clear-eyed, though: a deferral is a lien, not free money. Interest accrues and gets repaid later, which reduces what heirs would receive.
Assessment freeze or cap holds your assessed value (or your bill) steady even as the market rises. Some localities offer a version of this, for example, Henrico's RECAP program. It can help owners in fast-appreciating areas who do not qualify for a large exemption. Property owners have to meet eligibility requirements.
The right choice can depend on your cash flow, your health, your plans for the home, and your heirs. That is the kind of trade-off worth talking through with a fiduciary advisor before you commit.
The trap: how one IRA withdrawal can cost you a year of relief
If you qualify for income-based relief, the timing of a big withdrawal matters more than many people realize. A single large IRA distribution, or a lumpy Roth conversion, can push your income above your locality's limit for that year.
Under Code of Virginia §58.1-3215, a mid-year jump in income or net worth can nullify relief for the rest of that year and the following taxable year.
That is a real, avoidable planning risk. Coordinating when you take withdrawals or do Roth conversions around your local income limit is the kind of timing work that protects relief you have already earned.
This is general education, not individualized advice. The numbers depend on your locality and your full picture, so talk it through with your own tax professional or a fiduciary planner. Our guide to Roth conversion timing covers how this fits the rest of a retirement tax plan.
The 100% disabled-veteran exemption and how it impacts surviving spouses
For qualifying veterans, this is the strongest relief in Virginia, and it works differently from senior relief. It applies to a veteran with a 100% service-connected, permanent and total disability rating, certified by the U.S. Department of Veterans Affairs.
Under Code of Virginia §58.1-3219.5, that veteran's principal residence is fully exempt from Virginia real estate tax. There is no age test and no income test required for this exemption. The exemption applies to tax years on or after January 1, 2011 (Virginia Department of Veterans Services, Tax Exemptions).
Surviving spouses are covered too, within limits:
A surviving spouse may keep the exemption when the veteran died on or after January 1, 2011 as long as they do not remarry.
Surviving spouses of service members who died on or after January 1, 2011 who are unmarried can keep this exemption and move to a different principal place of residence.
The statute allows for real property held by the veteran, or with the veteran’s spouse as tenant or tenants for life or joint lives, property held in a revocable inter vivos trust when the veteran or veteran and spouse hold power of revocation, or property held in an irrevocable trust if the veteran or the veteran plus spouse possess a life estate or estate for joint lives or enjoy a continuing right of use or support.
One planning nuance is worth knowing. Say a homeowner could qualify for both the disabled-veteran exemption and senior relief. The veteran exemption is usually the stronger path, because it has no age or income test.
In many cases there is no reason to bundle the two - the veteran exemption stands on its own. As always, whether you qualify depends on the statute's conditions and your locality's process. Confirm the details before you rely on them.
Other things that can change your bill
A few more items quietly move Virginia real estate tax bills, and they are worth knowing.
Land-use valuation and the rollback tax. Qualifying agricultural, horticultural, forest, or open-space land can be taxed at its use value rather than full market value. (Code of Virginia §58.1-3230).
The catch: if the use changes - say you subdivide or sell inherited land for development - the locality can charge a rollback tax. It can cover up to five or six years of the difference, plus interest. It is a common surprise for heirs. (Virginia Tech, Land Use-Value Assessment Program).
Special service districts. Some areas add a small extra rate for services like enhanced fire protection or commercial-district upkeep, on top of the base locality rate. (Virginia Code § 15.2-2403).
Delinquency. If you do not pay on time, Virginia localities generally add a penalty plus interest. Long-term delinquency can eventually lead to a tax sale of the property. The exact penalty and interest terms are set by statute and vary, so check your locality for its current figures (Code of Virginia §58.1-3915, §58.1-3916, and §58.1-3965).
Due dates vary. Payment schedules are set locally and are commonly semi-annual - for example, June 5 and December 5 in some localities - so confirm your dates with your Treasurer.
The car tax is separate. Virginia's personal property tax on vehicles is a different tax at much higher rates, often around $3 to $6 per $100. The state subsidizes a share of the first $20,000 of value. This is not part of your real estate tax—it is an entirely separate personal property tax. We mention it only so the two are not confused.
Where property tax belongs in your retirement plan
Say you are deciding where to live in retirement. Maybe a move to Virginia, a move across Virginia, or a downsize where you already are. Property tax deserves a seat at that table. Rates and assessed values vary widely across the state, so two similar homes can carry very different bills. Over a 25- or 30-year retirement, that difference is real money.
At the same time, a lower rate is not automatically the better move. Property tax is one input among many — home values, services, income taxes, health care access, and proximity to family. It is a line item, not the headline.
Before you buy, relocate, or downsize in Virginia, confirm five things about the specific address:
The jurisdiction and its current rate. Is the address in a county or an independent city? Pull that locality's current adopted rate, not last year's.
Any special service district. Some areas add a small extra rate on top of the base locality rate.
The age-65 and disability relief limits. Each locality sets its own income and net-worth limits by ordinance, and you have to apply.
Whether a deferral or assessment freeze exists. These can matter more than the headline rate in a fast-appreciating area.
The reassessment cycle. Cities reassess at least every two years, counties at least every four. That tells you how often the value — and the bill — can jump.
In our work with retirees choosing where to live in Virginia, property tax is one line in the cash-flow plan. It is not the whole story. It sits alongside your withdrawal strategy, your income sources, and the timing of moves like Roth conversions. As covered above, a mistimed conversion can quietly cost you a year of local relief. Mapping those pieces together, for your situation and your address, is exactly the kind of work a fiduciary planner does with you.
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Frequently asked questions
Does Virginia have a state property tax?
No. Virginia has no set statewide property tax. Real estate tax is set and collected by each county, city, or town, expressed per $100 of assessed value (Virginia Department of Taxation).
How is Virginia real estate tax calculated?
Take your assessed value (100% of fair market value), divide it by 100, and multiply by your local rate per $100. Example: a $450,000 home at $0.83 per $100 is about $3,735 per year.
What is the average Virginia property tax rate?
The 2024 statewide nominal average was $0.9184 per $100, with an estimated effective rate of $0.6904 (Virginia Department of Taxation, 2024 Assessment/Sales Ratio Study). Local rates range widely.
Does Virginia give seniors a property tax break?
It allows, but does not require, each locality to offer relief to homeowners who are 65 or older or disabled, under Code of Virginia §58.1-3210. You generally must be 65 or older (or disabled), meet locally set income and net-worth limits, and apply.
Do 100% disabled veterans pay real estate tax in Virginia?
No. Under Code of Virginia §58.1-3219.5, the principal residence of a veteran with a 100% service-connected permanent and total disability is fully exempt, with no age or income test. Unremarried surviving spouses may qualify, subject to the statute's conditions.
How do I appeal my assessment in Virginia?
Start with an informal review at the Commissioner of the Revenue or assessor, then the Board of Equalization, then Circuit Court. The owner must prove the value exceeds fair market value or is not uniform. Deadlines are set locally, so check your assessment notice.
When are Virginia real estate taxes due?
Due dates are set locally and are commonly semi-annual - for example, June 5 and December 5 in some localities. Check your locality's schedule with the Treasurer.
Should property tax rates decide where I retire in Virginia?
Rarely on their own. A $0.20 per $100 rate gap is about $1,200 a year on a $600,000 home, which adds up over a 30-year retirement. But home values, income taxes, health care access, and proximity to family usually carry more weight in the decision.
Does downsizing lower my Virginia property tax?
Not automatically. Your bill follows assessed value and your locality's rate, not square footage. A smaller home in a higher-rate locality can leave the bill flat or higher. Compare the two actual bills before you assume savings.
If I move within Virginia, do I keep my senior tax relief?
No. Relief is granted locality by locality, under each one's own ordinance. You must apply again in your new locality and meet its income and net-worth limits. Confirm those limits before you move.
Is Virginia a good state for retirees on property tax?
It is roughly middle-of-the-road, and it depends heavily on your locality. The 2024 statewide nominal average was $0.9184 per $100, with an estimated effective rate of $0.6904 (Virginia Department of Taxation). Most localities also offer relief for homeowners 65 and older who meet local limits.
Do you want us to help you plan, invest, and reduce taxes for a retirement you'll love. Request a free strategy session today!
About the author:
Senior Financial Advisor
Matt is a Senior Financial Advisor with Covenant Wealth Advisors and a CERTIFIED FINANCIAL PLANNER™ practitioner. He has over 20 years of experience in the financial services industry in the areas of financial planning for retirement, tax planning, and investment management.
Disclosures: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond, Reston, and Williamsburg, VA. Registration of an investment advisor does not imply a certain level of skill or training. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. This article was written and edited by a CERTIFIED FINANCIAL PLANNER™ professional with the assistance of AI. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view. Diversification does not guarantee against risk of loss. While this guide attempts to be as comprehensive as possible no article can cover all aspects of retirement planning. Be sure to consult an advisor for comprehensive advice.
