By Michela Worthington, ABR, SRS, REALM Certified | The OwnRVA Group, brokered by Real Broker, LLC
When you are shopping for a home around Richmond, the list price is only part of the picture. Property taxes show up every single year you own the home, and they can vary by hundreds — sometimes more than a thousand — dollars depending on which county or city line a house sits on. Two nearly identical homes at the same price can carry very different tax bills simply because one is in Richmond City and the other is across the line in Henrico or Chesterfield.
I want you to walk into your home search understanding exactly how this works, so the number on your closing disclosure and your monthly payment never catches you off guard. Here is how Virginia real estate taxes work for the Richmond region, what the 2026 rates look like, and how to plan for them.
A quick but important note: I am a real estate agent, not a tax advisor or accountant. Everything below is meant to help you understand the mechanics so you can ask better questions. Always confirm the exact rate, your specific bill, and your eligibility for any relief program directly with the locality's office of the commissioner of the revenue or treasurer, or with a qualified tax professional.
How Virginia Real Estate Tax Is Calculated
Virginia keeps the math refreshingly simple. Your annual real estate tax is based on two things:
The assessed value of your property, set by the local assessor and meant to reflect fair market value.
The tax rate, expressed as a dollar amount per $100 of assessed value.
The formula is:
(Assessed value ÷ 100) × tax rate = annual real estate tax
So if a home is assessed at $400,000 and the rate is $0.90 per $100, the math is (400,000 ÷ 100) × 0.90 = $3,600 per year. That is the whole calculation. The complexity comes entirely from the fact that every city and county sets its own rate — and that is where buyers around Richmond need to pay attention.
2026 Real Estate Tax Rates by Jurisdiction
Below are the real estate tax rates I am seeing adopted for 2026 across the core Richmond-area jurisdictions, each expressed per $100 of assessed value. Rates are set annually by each locality's governing body, so treat these as a 2026 snapshot and always confirm the current rate with the locality before you rely on it.
Jurisdiction2026 real estate rate (per $100)Richmond City$1.20Henrico County$0.83Chesterfield County$0.89Hanover County$0.81Goochland County$0.53Powhatan County$0.77
A few things jump out. Richmond City has the highest rate of the group, which partly reflects the services and infrastructure of an urban core. Hanover and Henrico sit on the lower end among the developed suburban counties, and Goochland is notably low. These rates change over time — several counties have trimmed their rates in recent years while others have nudged them up — so the table above is a starting point, not a permanent fact. Confirm the current adopted rate with the jurisdiction.
What This Looks Like in Real Dollars
Rates on paper are abstract. Let me show you the actual annual difference on a home in the price range many of my buyers are shopping. Here is the estimated annual real estate tax on a home assessed at $400,000 and one assessed at $500,000, using the 2026 rates above. (Assessed value is not always identical to your purchase price, but it is a reasonable planning estimate.)
JurisdictionAt $400,000 assessedAt $500,000 assessedRichmond City ($1.20)$4,800$6,000Henrico County ($0.83)$3,320$4,150Chesterfield County ($0.89)$3,560$4,450Hanover County ($0.81)$3,240$4,050Goochland County ($0.53)$2,120$2,650Powhatan County ($0.77)$3,080$3,850
Look at the spread. On a $500,000 home, the annual tax ranges from roughly $2,650 in Goochland to $6,000 in Richmond City — a difference of about $3,350 a year, or close to $280 a month in your housing payment. That gap can absolutely change what you can comfortably afford, which is exactly why I bring taxes into the conversation early when we are mapping out where to look. If you want to see how tax costs interact with home prices in different areas, my 2026 Richmond market report is a good companion read.
The Separate Virginia Personal Property (Car) Tax
Here is something that surprises a lot of people moving to Virginia: there is a separate annual personal property tax, most commonly known as the "car tax," on vehicles you own. This is completely distinct from your real estate tax — it is not on your house, it is on your cars, trucks, motorcycles, and sometimes trailers or boats.
Each locality sets its own personal property rate per $100 of the vehicle's assessed value, and these rates are much higher than real estate rates. For 2026, for example, Henrico's personal property rate is $3.35 per $100 and Hanover's is $3.57 per $100. Virginia also offers partial Personal Property Tax Relief on qualifying vehicles, which reduces the bill on the first portion of a vehicle's value, with the relief percentage set each year.
The takeaway: when you budget for life in the Richmond area, remember the car tax is a real, recurring cost on top of your home's real estate tax. Confirm the current vehicle rate and relief percentage with your locality, since they vary and change annually.
How Assessments and Appeals Work
Your tax bill starts with the assessment — the locality's estimate of your property's fair market value as of a set date (in Richmond City, January 1 of each year). Localities reassess on their own schedules; some do it annually, others on a multi-year cycle. When values rise, your bill can go up even if the tax rate stays flat, because the rate is being applied to a higher assessed value.
If you believe your assessment is too high — say it does not reflect your home's actual condition or recent comparable sales — you generally have the right to appeal. The process usually starts with the local assessor's office, and there is typically a window and deadline to file. Many localities also have a board of equalization or review for appeals that are not resolved at the assessor level.
This is an area where I can genuinely help. Because I track local sales every day, I can pull comparable sales data that may support an appeal, and I am always glad to do that for clients and past clients. For the formal appeal procedure and deadlines, though, go straight to the assessor's office for your jurisdiction.
Escrow and Impound: How You Actually Pay
Most buyers do not write a separate check to the county every year. If you have a mortgage, your lender will usually set up an escrow (also called an impound) account. Each month, you pay roughly one-twelfth of your estimated annual property taxes — and often homeowners insurance — along with your principal and interest. The lender holds that money and pays the tax bill on your behalf when it comes due.
A few practical points I want you to understand:
Your monthly payment is principal + interest + taxes + insurance (often abbreviated PITI). Property taxes are baked right into that monthly number, which is why the jurisdiction you choose affects your monthly affordability, not just an annual bill.
Because assessments and rates change, your escrow can be adjusted each year. If taxes go up, your monthly payment can rise even though your loan terms never changed.
If you buy with no mortgage, or your loan does not require escrow, you pay the locality directly on its billing schedule (often twice a year).
When we get to the offer stage, I make sure you have a realistic monthly payment estimate that includes the correct jurisdiction's taxes — not a generic guess.
Tax Relief and Exemption Programs
Virginia localities offer several real estate tax relief and exemption programs that can meaningfully lower or even eliminate a qualifying owner's bill. These commonly include:
Elderly and disabled relief — programs for older homeowners and homeowners with qualifying disabilities, usually subject to income and net-worth limits.
Disabled veteran exemption — Virginia provides a real estate tax exemption for veterans with a 100% service-connected, permanent and total disability rating (and, in many cases, surviving spouses), on their primary residence.
Surviving spouse provisions — certain surviving spouses of qualifying first responders or service members may also be eligible.
Each program has its own eligibility rules, income and asset thresholds, application deadlines, and required documentation, and they vary by locality. I mention these so you know they exist and can ask the right questions — please do not assume you qualify or do not qualify based on this general summary. Confirm eligibility and applications directly with the commissioner of the revenue's office in your locality or with a tax professional.
Putting It All Together for Your Home Search
Here is how I'd encourage you to use all of this. Pick a realistic price range, then look at the after-tax monthly cost in each area you are considering, not just the sticker price. A home in one jurisdiction might leave more room in your budget than a slightly cheaper home in a higher-rate jurisdiction once taxes are factored in. Then layer in everything else that matters to you about a location.
If you are still narrowing down where to look, my guide to the best neighborhoods in Richmond walks through the character of different areas, and if this is your first purchase, my first-time homebuyer guide for Richmond covers the full process from pre-approval to closing.
Frequently Asked Questions
How are property taxes calculated in the Richmond area?
Take the home's assessed value, divide by 100, and multiply by the local tax rate. For example, a $400,000 assessment at a $0.90 rate is (400,000 ÷ 100) × 0.90 = $3,600 per year. Each city and county sets its own rate, so the same-priced home can carry a different bill depending on location. Confirm the current rate with the locality.
Which Richmond-area jurisdiction has the lowest property taxes?
Among the jurisdictions covered here, Goochland County has the lowest 2026 real estate rate at $0.53 per $100, followed by Powhatan ($0.77), Hanover ($0.81), Henrico ($0.83), and Chesterfield ($0.89). Richmond City is the highest at $1.20. Rates change annually, so always confirm the current adopted rate before relying on it.
Is the assessed value the same as what I pay for the home?
Not necessarily. The assessed value is the locality's estimate of fair market value as of a set date, and it can be higher or lower than your purchase price. It is a reasonable planning estimate, but your actual bill is based on the assessed value, not your contract price.
What is the Virginia personal property tax, and do I have to pay it?
It is a separate annual tax on vehicles you own — cars, trucks, and motorcycles — set by each locality per $100 of the vehicle's assessed value, and the rates are much higher than real estate rates. Virginia offers partial relief on qualifying vehicles. It is distinct from your home's real estate tax, so budget for both, and confirm your locality's current rate and relief percentage.
Can I appeal my property tax assessment?
Yes. If you think your assessment is too high, you can generally appeal through the local assessor's office, usually within a set window. Comparable sales data can support your case, and I'm glad to help past and current clients pull that. Contact the assessor's office for the exact procedure and deadlines.
How do property taxes affect my monthly mortgage payment?
If you have an escrow (impound) account, your lender collects roughly one-twelfth of your annual taxes each month as part of your payment, then pays the bill for you. That means a higher-tax jurisdiction raises your monthly payment, and your escrow can be adjusted each year as rates and assessments change.
Are there property tax relief programs for seniors, disabled homeowners, or veterans?
Yes. Virginia localities offer elderly and disabled relief programs (typically with income and net-worth limits) and a real estate tax exemption for veterans with a 100% service-connected permanent and total disability rating, with provisions for certain surviving spouses. Rules vary by locality, so confirm eligibility and deadlines with the commissioner of the revenue or a tax professional.
Working With Michela
Property taxes are one of those costs that quietly shape what you can afford and where it makes sense to buy — and they are easy to overlook until they show up on your closing disclosure. My job is to make sure you see the full picture for every home and every jurisdiction we consider, so your monthly payment is something you planned for, not something you discovered.
If you are ready to start your Richmond home search, or you just want help comparing the real, after-tax cost of homes across the area, I would love to help. Reach out anytime through my contact page and let's map out a plan that fits your budget and your goals.
Michela Worthington, ABR, SRS, REALM Certified — The OwnRVA Group, brokered by Real Broker, LLC.