Virginia Property Tax: Simple Facts and How to Keep Your Costs Low

If you own or are thinking about buying a home in Virginia, property tax is one of the biggest annual costs you’ll face. It’s not a mystery – it’s just a percentage of your property’s assessed value that the local government uses to fund schools, roads, and public services. Below you’ll get the basics, the numbers you need, and a few practical tricks to save money.

How Virginia Property Tax Is Calculated

First, the county or city assessor decides what your home is worth. This “fair market value” is usually about 100% of what the property would sell for on the open market. Next, the local tax rate – also called the “millage rate” – is applied. One mill equals $1 of tax per $1,000 of assessed value. For example, if your house is valued at $250,000 and the millage rate is 6.5, the calculation looks like this:

Tax = (Assessed Value ÷ 1,000) × Millage Rate
(250,000 ÷ 1,000) × 6.5 = $1,625 per year.

Rates differ by locality. In 2025, Fairfax County averages around 8.5 mills, while rural counties like Augusta often sit under 5 mills. Check your county’s website or the Virginia Department of Taxation for the exact figure.

Saving Money on Your Virginia Property Tax

Virginia offers a few exemptions that can cut down your bill:

• Homestead Exemption: Homeowners 65 or older, or those with permanent disabilities, can get a $25,000 reduction in assessed value.
• Veteran Exemption: Qualified veterans receive a $5,000 reduction.
• Agricultural Use: If you farm a sizable portion of your land, you may qualify for a lower assessment based on its productive use.

Another tip is to challenge the assessment if you think it’s too high. You have 45 days after receiving your notice to request a hearing. Bring recent sales data for similar homes in your area and be ready to explain why yours should be valued lower.

Paying on time avoids penalties. Most Virginia localities allow online payments, automatic bank drafts, or in‑person drops at the county clerk’s office. Some counties even offer a 10% discount if you pay before the June 30 deadline.

Finally, use the free online property tax calculators provided by many counties. Plug in your address and the latest millage rate to see a quick estimate. It helps you budget and spot any unusual spikes early.

Remember, property tax isn’t something you can ignore. It funds the schools your kids attend and the roads you drive on, so staying informed protects both your wallet and your community. Keep these basics handy, check your local rates each year, and take advantage of any exemptions you qualify for. That way you’ll pay only what you truly owe and avoid surprise bills.