One expense of being a homeowner that a lot of people don’t think about enough when shopping for a home is property taxes. These are a lifelong annual expense, unlike your mortgage, which you will eventually be able to pay off given enough time. Let’s go over a few basic things you should know about property taxes in Virginia.
- Property taxes are charged and paid at the local level. Property taxes are assessed at the local level, not the state level. Cities, counties and towns all can set property tax rates. So, what you will owe in property taxes depends on 1-the value of your property, and 2-your specific locale within Virginia. To find out what your property tax rate is, you can reach out to your local tax office. In fact, you may be able to find what you need on their website. They usually will let you search using your address, parcel ID, or the name of the owner (you, presumably). Multiply the local millage rate by your home’s assessed value. This will tell you what you owe.
- VA as a whole has competitive property tax rates. Based on data from 2025 and 2026, the average effective property tax rate in Virginia has ranged between 0.71% and 0.77%. The national average has been closer to 0.89%. That is great news, because it means that many VA homeowners are paying lower property taxes than the average American. This may come as some surprise, given the high values of many VA homes. So, you are in a situation where you get the best of both worlds. Your property can be worth a lot without the tax rate bleeding you dry.
- Property taxes can rise over time. The property taxes at the time you buy your home will not be your property tax rate forever. This is not like a fixed mortgage rate. It’s a cost that changes over time.
- If local property tax rates rise, so does what you have to pay.
- If the value of your property rises, then your property taxes can increase.
It is common for both of these things to happen. So, you should assume that in future years, your property taxes will be higher.
- You need to budget for property taxes. One of the biggest mistakes homebuyers make when they are calculating how much home they can afford is to neglect to account for the likely future rise in property taxes. Speaking of which, you should also remember to account for inflation and other rising costs in the future as well. It is important to be aware that even after your mortgage is completely paid off, you will always owe property tax. Since it can amount to hundreds of dollars a month, it is a little like rent, though usually quite a bit less expensive. Sometimes a homebuyer will be able to afford their property taxes when they move in, but after they go up many years later, they suddenly discover they are priced out of their own home. That can even happen after paying off the home loan, especially if you are retired and living on a fixed income.
The solution is just to make sure you are prepared in advance for this possibility.- Look up the historical property tax rates for that area. See how they have increased in the past.
- Research development plans and potential for the area, and any other factors that might drive up property values and/or tax rates in the future.
Take a guess what your property taxes might be in 10 years, 20, or 30, if you plan to stay in the home that long. Try to predict how your other costs will rise as well. Consider your career plans and salary growth potential over the same time period, as well as changes that could affect your industry.
Do your best to estimate your future income and expenses. Calculate how much you can afford to spend on a home based both on your current finances and these hypothetical calculations. This should give you the best chance of keeping homeownership affordable over the long term.
Buy a Home in Blacksburg or Beyond
First Residential Mortgage can answer your questions about property taxes, and help you buy a home with a competitive mortgage. We are based in Blacksburg, and work with homebuyers and homeowners throughout the state. To get started now, please give us a call at (540) 838-5868.
