Real Estate Taxes Virginia: What You Need to Know About Property Taxes and Rules

When you own property in Virginia, a U.S. state with no state-level rent control and property taxes set by local governments. Also known as Virginia property tax, it's not a flat rate—it changes depending on where you live, what type of property you own, and whether it's used for rental or personal use. Unlike states that cap how much landlords can raise rent, Virginia lets localities decide tax amounts, and those can jump fast if your neighborhood grows or gets upgraded.

Real estate taxes in Virginia are based on assessed value, not purchase price. That means even if you bought a house five years ago for $300,000, your tax bill could be higher today because the county reassessed it at $400,000. Counties like Fairfax, Arlington, and Loudoun have some of the highest rates in the state—often over 1% of the home’s value. For a $500,000 home, that’s $5,000 a year in taxes alone. If you’re renting it out, those taxes are part of your operating cost, and you can deduct them on your federal return. But if you’re a tenant, you don’t pay them directly—yet you still feel the impact when rent goes up to cover them.

There’s also a big difference between residential and commercial property taxes. A small office building in Richmond might pay double the rate of a single-family home nearby. And if you’re thinking about buying land for development, don’t forget: Virginia doesn’t have a homestead exemption for investment properties. That means investors get no tax break, even if they live in the house. Some counties offer relief for seniors or disabled owners, but those programs vary wildly. One county might freeze taxes for retirees; another might not offer anything.

And here’s something most people miss: Virginia rental income tax, the state tax on money earned from renting out property. Also known as Virginia landlord tax, it’s not a separate tax—it’s just part of your regular state income tax. But if you don’t track your expenses correctly, you could overpay. Repairs, property management fees, insurance, and yes, even property taxes themselves, are deductible. Keep receipts. Use a spreadsheet. Don’t guess. The state doesn’t send reminders. The IRS doesn’t either. It’s all on you.

Then there’s the issue of penalties. If you don’t pay your property taxes on time, Virginia allows counties to place liens on your home. That’s not a small thing. A lien can block you from selling, refinancing, or even getting a second mortgage. And if it goes unpaid for too long? The county can auction your property. It’s happened in places like Roanoke and Chesapeake to owners who thought they had more time.

So if you’re a homeowner, a landlord, or just thinking about buying in Virginia, understanding how real estate taxes work isn’t optional—it’s survival. You can’t rely on a realtor to explain it. You can’t assume your neighbor’s bill is yours. And you definitely can’t ignore it until it’s too late.

Below, you’ll find real cases, real numbers, and real rules from people who’ve been through it. From how much a $1 million home costs to tax in Loudoun County, to what happens when a landlord forgets to report rental income, to why some Virginia counties are quietly raising rates every year—you’ll see exactly what’s at stake.