Virginia Rental Property Taxes: What Investors Actually Pay in 2026
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Virginia's property-tax story is the corrective investors most need to hear: there is no cap on how much a single reassessment can raise your bill. Rates are mild by East Coast standards, but nothing shields a rental from a market-driven jump.
How high are property taxes on a Virginia rental property?
Moderate, and locality-set. Virginia real estate tax rates run roughly 0.7% to 1.2% of value a year, expressed as a rate per $100 of assessed value. At the low end, Loudoun County sits at 0.805 and Prince William at 0.906; at the high end, the cities of Norfolk (1.230), Richmond (1.200), and Falls Church (1.200) run higher, and Northern Virginia's Fairfax County lands near 1.123 (2025 tax year). Cities generally run higher than the surrounding counties, which is the real "where the tax bill lands" corrective when you compare a Norfolk purchase to a Loudoun one. That tax line sits inside the PITIA payment your DSCR ratio is measured against.
Is there a reassessment cap like a homestead exemption? (No)
This is the corrective. Virginia has no cap on the size of a single reassessment increase, for rentals or for homesteads. States with homestead-style assessment caps limit how fast a taxable value can climb; Virginia does not, so every reassessment passes through at full fair market value. Reassessment cycles are locality-set: cities with more than 30,000 residents must reassess at least every two years, many localities reassess annually, and smaller counties can run a 4-year cycle. Combined with the missing cap, that means a rental's assessment can jump sharply in a single cycle with no legal ceiling, which is exactly the risk to model before you buy. There is also no statewide homestead exemption that would help a rental; the only local-option relief is for qualifying owners 65+ or permanently disabled, and investment property never qualifies.
Does Virginia have a real estate transfer tax?
Not a single flat "transfer tax," but two recording taxes that function like one. Virginia charges a recordation tax of $0.25 per $100 of value on the grantee (buyer) side, plus a local recordation tax of up to one-third of the state amount where a locality imposes it. Separately, the grantor tax is a seller cost at $0.10 per $100, with regional add-ons stacked on top in Northern Virginia (a WMATA $0.10 and a congestion-relief $0.10) and Hampton Roads (a $0.06 regional rate). Framing this as "recordation plus grantor" rather than one transfer tax matters for closing-cost comparisons, and it is a seller-side cost investors underestimate. On a refinance the recordation tax on the new deed of trust applies; the grantor tax generally does not: investor cash-out refinance.
The rollback tax on land-use parcels
One tax catches investors buying land-use-classified parcels in the exurbs and the Shenandoah Valley. Virginia localities may adopt a use-value assessment ordinance that taxes qualifying agricultural, forestal, or open-space land on its use value instead of fair market value. When the use or zoning changes to something that disqualifies it, a rollback tax triggers: the owner owes the deferred tax for the five most recent complete tax years, plus simple interest at the locality's delinquent-tax rate, and the current year is reassessed to fair market value. If your plan is to buy a land-use parcel and develop or convert it, model the rollback tax with your CPA or attorney before you close. It is a real number, not a footnote.
Does Virginia tax rental income?
Yes. Virginia taxes individual income, including net rental income, on a graduated schedule from 2% to 5.75%, and the top 5.75% bracket reaches Virginia taxable income above $17,000. The bracket compresses quickly, so most rental-income filers land in the top bracket. Federal income tax applies on top, and your CPA runs both. Rent control does not factor in here because Virginia has none; the landlord-law side, including deposit caps and notice periods, is in our Virginia landlord-law guide.
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Frequently asked questions
Is there a cap on Virginia property tax reassessments?
No, and this is the corrective. Virginia has no cap of any kind on the size of a single reassessment increase, for rentals or homesteads. Reassessment cycles are locality-set (annual in many cities, up to every four years in smaller counties), so every reassessment passes through at full market value and a rental's bill can jump sharply in one cycle with no legal ceiling.
How high are property taxes on a Virginia rental property?
Roughly 0.7% to 1.2% of value a year, locality-set (2025 tax year). Loudoun County (0.805 per $100) and Prince William (0.906) sit low; the cities of Norfolk (1.230), Richmond (1.200), and Falls Church (1.200) run higher, and Fairfax County lands near 1.123. Cities generally run higher than surrounding counties, and no statutory cap limits a single reassessment.
Does Virginia have a real estate transfer tax?
Virginia charges a recordation tax (state $0.25 per $100, buyer-paid, plus a local add-on up to one-third of that) and a grantor tax (state $0.10 per $100, seller-paid, with Northern Virginia and Hampton Roads regional add-ons) rather than one flat transfer tax. The framing distinction matters for closing-cost comparisons; on a refinance, only the recordation tax on the new deed of trust generally applies.
What is Virginia's rollback tax on land-use land?
If land taxed under a local land-use (use-value) ordinance changes to a disqualifying use or zoning, the owner owes a rollback tax: the deferred tax for the five most recent complete tax years plus simple interest, and the current year is reassessed to fair market value. It is relevant to investors buying land-use-classified exurban or Shenandoah Valley parcels to develop. Confirm the figures with your CPA or attorney.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. City and county STR rules, tax figures, and filing fees change; verify current requirements with the locality, your CPA, or a Virginia real estate attorney before you buy. Loans are subject to buyer and property qualification.