Salem, Virginia Tax Rates

Salem Tax Rates - At a Glance

Salem Current Tax Rates Summary

Tax Type	Rate	Notes
Real Estate Tax	$1.180 per $100	Tax year 2025 per Virginia DOT survey; verify current adopted rate with the City of Salem
Vehicle Personal Property Tax	$3.40 per $100	General personal property rate TY2025 per DOT survey; personal use vehicle rate may differ; PPTRA relief on first $20,000; verify current rate
Machinery and Tools	$3.200 per $100	TY2025 per DOT survey (business tangible personal property)
Sales Tax	5.3%	General Virginia rate; not in a regional transportation district; qualifying groceries 1.0%

Real Estate Tax

Rate and Assessment

Salem's real estate tax rate was $1.180 per $100 of assessed value for tax year 2025, as reported in the Virginia Department of Taxation Local Tax Rates Survey. Salem is an independent city in the Roanoke Valley of southwestern Virginia. The rate is set annually by Salem City Council.

Verification note: Rates are from the Virginia DOT Local Tax Rates Survey (tax year 2025). Verify the current adopted rate at salemva.gov or by contacting the Salem Commissioner of the Revenue before making financial decisions.

Service Districts

Salem has no city service-district levies in the Virginia DOT Table 5 for tax year 2025. The base $1.180/$100 rate applies citywide.

Independent City Status

Salem is an independent city - a county-equivalent jurisdiction in Virginia. Although Salem is geographically surrounded by Roanoke County, the two are legally and administratively separate. Salem is also a separate jurisdiction from the adjacent City of Roanoke. If you live in Salem, your local property and vehicle taxes are set by the Salem city government, not by Roanoke County or the City of Roanoke. Each Roanoke Valley jurisdiction sets its own rates.

Exemptions and Relief Programs

Salem offers tax relief programs for qualifying senior citizens and disabled residents. Disabled veterans who are 100% service-connected disabled may qualify for a full real estate tax exemption on their primary residence under Code of Virginia § 58.1-3219.5. Contact the Salem Commissioner of the Revenue for current eligibility thresholds and procedures.

Source: Virginia DOT Local Tax Rates Survey TY2025 (pdfplumber extraction, direct from source).

Vehicle Personal Property Tax

Rate and Assessment Method

Salem's general personal property tax rate was $3.40 per $100 of assessed value for tax year 2025, as reported in the Virginia DOT Local Tax Rates Survey. Under Code of Virginia § 58.1-3503, localities assess vehicles using a recognized pricing guide as of January 1 of the tax year.

Important note on rate classification: The Virginia DOT Local Tax Rates Survey reports the general tangible personal property rate. The DOT survey explicitly states that "certain items of property, including vehicles, may be considered separate classifications and may be taxed at a different tax rate." The current personal use vehicle rate in Salem may differ from the $3.40 general rate. Contact the Salem Commissioner of the Revenue to confirm the rate that applies to your vehicle.

PPTRA Relief

Virginia's Personal Property Tax Relief Act (PPTRA), Code of Virginia § 58.1-3524, provides partial state-funded relief on the first $20,000 of assessed value for qualifying personal use vehicles. Virginia distributes a fixed annual block grant of $950 million among all localities. Salem calculates its annual PPTRA relief percentage based on its share of that grant and the total qualifying vehicle assessed value in the city. This percentage changes each year. For a deeper explanation of how PPTRA works, see our Virginia PPTRA explained guide.

PPTRA percentage pending official confirmation. Contact the Salem Commissioner of the Revenue or visit salemva.gov to confirm the current-year vehicle personal property tax rate and PPTRA relief percentage.

Rate source: Virginia DOT Local Tax Rates Survey TY2025 (pdfplumber extraction, direct from source).

Sales Tax

Rate and Composition

The combined sales tax rate in Salem is 5.3%. Salem is not within the Northern Virginia, Hampton Roads, or Central Virginia regional transportation districts, so no 0.7% regional levy applies. The standard Virginia statewide rate applies.

Salem Sales Tax Rate Breakdown

Component	Rate
Virginia state rate	4.3%
Local rate	1.0%
Combined rate	5.3%

Qualifying food and grocery items are subject to Virginia's reduced 1.0% state rate. Note that some Virginia jurisdictions (Northern Virginia counties, Hampton Roads cities, Central Virginia counties) charge a 6.0% sales tax. If you shop across jurisdictional lines, the applicable rate depends on where the sale occurs, not your city of residence.

Source: Virginia Department of Taxation - Retail Sales and Use Tax (tax.virginia.gov)