VA Taxes Explained: What Virginia Homeowners and Renters Need to Know

If you live in Virginia, taxes are part of daily life, but they don’t have to be a mystery. Whether you own a house in Shriram Chirping Woods or rent an apartment in Richmond, understanding the basics can save you money and avoid surprise bills.

Property Tax Basics

Virginia’s property tax is set by local counties and cities. The tax rate, called the "millage rate," is expressed in dollars per $1,000 of assessed value. Your assessment usually reflects market value, but you can appeal if you think it’s too high. Most counties send an assessment notice each spring; check the figures, compare with recent sales, and file an appeal before the deadline.

Paying on time prevents penalties, but many jurisdictions offer a discount for early payment—often 2% off the bill. Set up automatic debit to lock in the discount and never miss a due date.

Other Taxes You Should Watch

Virginia does not have a state income tax on Social Security benefits, and retirees often qualify for the "Virginia Income Tax Relief" program, which can lower the tax rate on other retirement income. If you’re a veteran, look for the "Veterans Property Tax Exemption"—some counties waive up to 100% of the property tax for qualifying service members.

Sales tax is 5.3% statewide, with an extra 0.7% for localities that levy a regional tax. When you buy big-ticket items—appliances, furniture, or building materials—keep receipts. If you’re renovating a rental property, you may be able to claim a tax credit for the improvement costs.

Even if you rent, you’re not exempt from taxes. Renters in Virginia sometimes qualify for the "rental energy efficiency credit" if the landlord upgrades insulation or windows, and the credit can be passed on in the form of a reduced rent.

Here are three practical steps to keep your VA tax bill in check:

1. Check your property assessment. Verify the value, note any errors, and appeal within 30 days if needed.
2. Explore exemptions. Veterans, seniors, and low‑income households have specific credits—apply online or at your county tax office.
3. Plan payments. Use automatic payments to snag early‑pay discounts and avoid penalties.

Finally, keep an eye on legislative changes. Virginia often tweaks tax rates or introduces new credits. Subscribing to your county’s newsletter or checking the Virginia Department of Taxation website each quarter ensures you stay ahead of the curve.

Understanding VA taxes doesn’t require a degree in finance—just a few minutes each year to review, appeal, and apply for credits. Follow these steps, and you’ll keep more of your hard‑earned money where it belongs: in your pocket or your home.