Alexandria Property Tax: How Does it Compare to Other Major Cities? (2024)

The city of Alexandria, Virginia has a population of about 150,000. Located just eight miles from Washington, DC, it’s in one of the most affluent areas of Virginia, with a median household income of about $81,000. According to 2010 census data, there were just over 75,000 housing units in the city, with 65,000 individual households and a home ownership rate of 43 percent. About 63 percent of the city’s dwelling units are in multi-unit structures, such as apartment complexes. The city is a magnet for military, corporate, and government employees; therefore, much of the population is transient, and housing in many areas has a relatively high turnover rate.

How Much is Real Estate Tax?

Alexandria property tax on real estate is $1.043 per $100 of assessed value. The median list price for a single-family home in Alexandria is $828,000. The annual tax on a home assessed at that value would be about $8,636. The median list price for a condo or townhouse is about $340,000, which would cost about $3,546 in real estate tax.

Properties located in two special services districts pay additional real estate tax to finance the development of the Potomac Yard project. Tier I includes North Potomac Yard and Landbays G, H, and part of I. Since 2011, this area pays an additional $0.20 for a total real estate tax rate of $1.24 per $100. Tier II covers the southern part of Potomac Yard, including the rest of Landbay I and all of Landbay J. This area will pay an extra $0.10 for a total real estate tax rate of $1.14 per $100, beginning after the Potomac Yard Metrorail station opens. As of early 2016, the project is in the Environmental Impact Statement phase of the process, and no projected completion date is available.

How Much is Personal Property Tax?

The personal property tax rate on vehicles in Alexandria is fairly high at $5 per $100 of assessed value. However, the city recently began a tiered system that alleviates some of this tax burden. Vehicles with a value of $1,000 or less are untaxed. Depending on the car’s value, it may be eligible for up to 60 percent of relief. In additional to personal property tax, there is a decal fee for city residents: $33 for cars and recreational vehicles, $21 for motorcycles, and $14.50 to $40 for trailers, depending on vehicle size.

Members of Congress and their spouses as well as foreign diplomats and their families are exempt from the decal fee and personal property tax. Military personnel on extended active duty and not residents of Virginia are exempt from fee and tax, while active duty military Virginia residents are exempt from the decal fee but not property tax, as are vehicles with Virginia disable veteran license plates.

How Does Alexandria Compare In-State?

Alexandria is an independent city, so homeowners only pay the city’s real estate tax. In other localities, residents have to pay both city and county taxes, making Alexandria’s effective tax rate considerably lower than many municipalities. However, due to lofty home prices in Alexandria, the overall tax burden is fairly high.

The Virginia average tax rate is 0.74 percent of assessed market value, or $0.74 per $100. The state’s highest tax burden is in Falls Church, where median property tax is just over $6,000. Virginia’s lowest tax rate is in rural Buchanan County, averaging $284 per year.

How Does Alexandria Compare Nationally?

Alexandria’s tax rate is lower than that of most large cities. Among the nation’s top five largest cities, Chicago’s tax rate is the highest at $1.86 per $100. The lowest is New York City’s overall average of about $0.72 per $100, despite very high taxes in the area around Manhattan. The states with the highest average tax rates are New Jersey at $2.38, Illinois at $2.32, and New Hampshire at $2.15 per $100 of assessed fair market value.

Are There Tax Relief Programs?

All Virginia municipalities participate in the disabled veteran’s exemption program. The veteran must be deemed to have a 100 percent, permanent, service-connected disability via documentation from the US Department of Veteran’s Affairs. The surviving spouse of a veteran meeting these qualifications is eligible for the exemption as well.

Alexandria also offers a tax assistance program to qualifying seniors over the age of 65 and disabled persons. Those who meet these criteria and have a gross household income of $40,000 or less qualify for a full exemption; an income of up to $55,000 qualifies for a 50 percent exemption; and an income of up to $72,000 qualifies for 25 percent exemption. The application for Elderly and Disabled Tax Relief is due to the Department of Finance by April 15^th.

What Else Do I Need to Know?

Real estate taxes are split into two payments, due on June 15^th and November 15^th. Payments can be mailed or delivered to the Treasurer’s Office. The city also offers an automatic bank debit program which allows payments to be made monthly or in a lump sum on the two due dates.

2 Point Highlight

Alexandria is an independent city, so homeowners only pay the city’s real estate tax.

Alexandria also offers a tax assistance program to qualifying seniors over the age of 65 and disabled persons.