The mechanics are simple, and they matter because the state of Virginia does not collect a property tax at all. Under state law, real estate is taxed locally: your county or city assesses every home at 100 percent of its fair market value, then the elected board of supervisors or city council sets the tax rate. In Fairfax, the county bases the value on your home as of January 1 each year and mails assessment notices early in the year. Your annual bill is the assessed value divided by 100, multiplied by the rate the board adopted.
Bills arrive in installments. In Fairfax County, real estate taxes are due twice a year, on July 28 and December 5, and most bills go straight to mortgage companies electronically because lenders collect the taxes monthly through your escrow account. If you carry no mortgage, the bill comes to you directly. Keep the notice even if you never see it: the county notes that missing a bill does not remove the penalty for paying late, so Ashburn homeowners with escrow should still check their assessment when it arrives.
What the money buys is the part most buyers care about, and it stays in your community. Real estate taxes are the primary revenue source for local government in Northern Virginia. Public schools take the largest share of the budget, followed by public safety (police, fire and rescue), parks and libraries, roads and transportation, and general government services. Some properties sit in special tax districts that add a small additional levy for roads or transit, which is why tax bills can differ across streets in the same county, including in Alexandria.
Three things to know before you buy. First, taxes are prorated at closing: the seller covers the days they owned the home and you pick up the rest, all handled at the settlement table. Second, if you disagree with your assessment, every locality has an appeal process through its tax administration office, and comparable sales are the usual evidence. Third, most counties offer tax relief programs for qualifying seniors, veterans, and homeowners with disabilities, so ask the county directly if one applies to you. Ask your agent to walk you through the escrow line on your monthly payment estimate before you commit.
FAQ
Does Virginia charge a state property tax?
No. Real estate taxes in Virginia are levied by cities and counties, not the state. The locality assesses your home and sets the rate, and the Commonwealth collects no property tax of its own.
How does the county decide what my home is worth?
Assessors estimate 100 percent of fair market value, meaning the price the home would likely bring in an open sale. They review recent sales, property characteristics, and market conditions. Fairfax County, for example, reassesses every year and mails notices in February.
Can I appeal my property assessment?
Yes. Every locality offers an appeal process through its tax administration or assessment office. The usual path is to present comparable recent sales showing your assessment is higher than fair market value. File promptly, because appeal windows are short.
I have a mortgage. Do I still pay property taxes?
Yes, just not directly. Your lender divides the estimated annual tax into twelve parts, adds it to your monthly payment, and holds it in an escrow account to pay the county in installments. If you pay off the loan, the bills come to you directly.