Virginia Property Tax Explained

How is Virginia property tax calculated?

The formula is straightforward:

Annual Tax = (Assessed Value / 100) x Tax Rate

Virginia expresses property tax rates as dollars per $100 of assessed value. A rate of $1.00 per $100 means you pay $1.00 for every $100 of your property's assessed value. This is equivalent to a 1% effective rate, but Virginia localities use the "per $100" convention rather than a percentage.

For example, if your home is assessed at $350,000 and the rate is $0.895 per $100:

• $350,000 / 100 = 3,500
• 3,500 x $0.895 = $3,132.50 per year

What does "per $100 assessed value" mean?

This is Virginia's standard way of expressing property tax rates. Instead of saying a rate is 0.895%, Virginia says it is $0.895 per $100 of assessed value. Both mean the same thing mathematically.

The convention exists because Virginia has used it for over a century. When you see a rate like "$1.053 per $100," you can convert it to a percentage by dividing by 100: that is 1.053%.

Some other states use mills (tenths of a cent per dollar) or percentages. Virginia's "per $100" system is specific to this state.

Quick Facts

How are properties assessed in Virginia?

Virginia Code SS 58.1-3201 requires all real property to be assessed at 100% of fair market value. This means the assessed value on your tax bill should equal what your property would sell for in the current market.

Key points about Virginia assessment:

• No fractional ratios: Unlike states that assess at 40% or 80% of market value, Virginia uses 100%. This makes rate-to-rate comparisons within Virginia straightforward - a $1.00 rate in one county means the same effective burden as a $1.00 rate in another, assuming equal assessment accuracy.
• Reassessment frequency varies: Virginia law allows localities to reassess every 1, 2, or 4 years. Some counties reassess annually; others every 4 years. Between reassessments, your assessed value stays fixed even if market values change.
• Assessment appeals: If you believe your assessment is higher than fair market value, you have the right to appeal. The process varies by locality but typically starts with the local assessor or Board of Equalization.

Common points of confusion

• "Per $100" is not the total tax. A rate of $1.00 per $100 on a $300,000 home is $3,000/year - not $100. The "$100" in the rate label is the unit of measurement, not the tax.
• Assessed value is not purchase price. Your assessment should reflect current market value, not what you paid. If you bought at $250,000 five years ago and similar homes now sell for $350,000, your assessment should be near $350,000.
• The base rate may not be the total rate. Some jurisdictions add levies on top of the base rate - fire/rescue districts, special service districts, or overlapping town taxes. Prince William County's base rate is $0.906 but most properties also owe a $0.072 fire/rescue levy and a $0.0025 mosquito/pest levy. Winchester has downtown district levies of $0.130-$0.230 per $100 that apply only within specific boundaries.
• Independent cities are not part of counties. Virginia's independent cities (Richmond, Norfolk, Virginia Beach, etc.) are separate jurisdictions. A property in Richmond pays Richmond's rate, not Henrico County's or Chesterfield County's, even though those counties border the city.
• Tax relief programs exist but require application. Most Virginia localities offer tax relief for elderly and disabled homeowners, and Virginia provides a disabled veteran exemption. These are not automatic - you must apply with your local commissioner of the revenue.

Important Limitations

• Rates change annually when the locality adopts its budget. Always confirm the current rate with your jurisdiction.
• Assessment accuracy varies. If your assessment seems too high relative to comparable sales, consider appealing.
• Overlapping town levies apply only if your property is within an incorporated town inside a county.
• Special district levies (fire/rescue, downtown, etc.) apply only within specific geographic boundaries.
• This guide covers real estate tax only. Virginia localities also tax tangible personal property (vehicles, business equipment) at separate rates.

Sources

• Virginia Code SS 58.1-3201 - Assessment at fair market value
• Virginia Code SS 58.1-3918 - Penalty and interest on delinquent taxes
• Virginia Department of Transportation - Local Tax Rates Survey (TY2025)

Property tax rates are set annually by each locality and are subject to change. Assessment values are updated periodically. Verify current rates and your assessment with your local commissioner of the revenue or assessor before making financial decisions.