Quick Summary
- Virginia Beach reassesses property values every year to ensure fairness and accuracy in tax distribution.
- Assessed values are not the same as appraised or market values and can be appealed if inaccurate.
- Homeowners may be eligible for tax relief programs, and understanding your assessment is key to protecting your financial interests.
If you own property in Virginia Beach, or anywhere in the Commonwealth of Virginia, your real estate tax assessment is one of the most important — and often misunderstood — aspects of homeownership. Every year, property owners receive a notice from the City treasurer or assessor where they live estimating what their home is worth for tax purposes. This estimate, known as your assessed value, directly affects how much you owe in property taxes.
But how are these values calculated? Can they be contested? And what should you do if you think your property has been over-assessed?
This comprehensive guide will walk you through how real estate tax assessments work in Virginia Beach, VA, and what every property owner should know to avoid overpaying and plan ahead.
What Is a Real Estate Tax Assessment?
A real estate tax assessment is the valuation of a property by a local government to determine its taxable value. This assessed value is used to calculate the annual property taxes owed by the homeowner.
It’s important to note that assessed value is not always equal to:
- Appraised value: A value determined by a licensed real estate appraiser during a transaction or refinance.
- Market value: What a buyer would likely pay for the property in the open market.
In Virginia Beach, the Office of the Real Estate Assessor is responsible for conducting assessments on over 160,000 parcels of land. These assessments are based on market conditions, recent sales, and the characteristics of each property.
How Real Estate Tax Assessments Work in Virginia Beach
Unlike some localities that reassess properties every two to five years, Virginia Beach performs reassessments annually. This practice helps ensure that property values reflect current market trends and provides a more accurate basis for tax calculations.
Key Points:
- Assessments are completed each January 1st and mailed to property owners in early spring.
- The valuation date is as of July 1st of the previous year.
- The city uses a mass appraisal system to determine value, relying on recent comparable sales, property data, and automated valuation models.
Understanding the Mass Appraisal Process
The Real Estate Assessor’s Office uses a Computer Assisted Mass Appraisal (CAMA) system to analyze property data and calculate assessments. This method involves grouping properties with similar characteristics (e.g., neighborhood, size, style, age) and applying statistical models based on recent sales data.
While not as individualized as a private appraisal, mass appraisal allows for consistent and scalable valuation across thousands of properties.
What Causes a Change in Assessed Value?
Several factors can cause your property’s assessed value to increase or decrease:
1. Market Activity
If home values are rising in your neighborhood — whether due to demand, school ratings, or redevelopment — your assessment may increase even if you haven’t made any changes to the property.
2. Permits and Renovations
Major improvements such as kitchen remodels, home additions, or finishing a basement may increase your assessed value. These changes are usually tracked through building permits.
3. New Construction
If you build a new home or substantially rebuild an existing one, expect a reassessment once construction is complete.
4. Corrected Errors
If the Assessor’s Office identifies a mistake in the previous assessment (e.g., wrong square footage), your value may be adjusted accordingly.
How Real Estate Taxes Are Calculated in Virginia Beach
Your property taxes are calculated using this formula:
Assessed Value × Tax Rate = Annual Property Taxes
As of the most recent tax year, Virginia Beach’s real estate tax rate is $1.03 per $100 of assessed value. So, if your home is assessed at $400,000:
$400,000 ÷ 100 = 4,000
4,000 × $1.03 = $4,120 in annual property taxes
In addition to the base rate, Virginia Beach may impose special levies or stormwater fees, depending on your location. The tax rate varies between Cities/Counties in Virginia.
Tax Proration for New Buyers or Builders
If you purchase a home partway through the year or finish new construction mid-year, your taxes may be prorated. The city will calculate the taxes owed for your period of ownership, ensuring you’re only responsible for your portion of the year. Also, SUPPLEMENTAL ASSESSMENTS may be levied, even after you close on the purchase of your home, especially, if it was changed from property zoned for farming and converted to a residential zoning.
Available Tax Relief and Exemptions
Virginia Beach offers several property tax relief programs for qualifying residents:
1. Tax Relief for the Elderly or Disabled
Eligible homeowners may receive full or partial exemptions based on:
- Age (65 or older)
- Total income
- Net worth (excluding the home)
2. Disabled Veteran Exemption
Veterans with a 100% service-connected, permanent, and total disability may receive a full exemption on their primary residence.
3. Surviving Spouses
Surviving spouses of eligible veterans or first responders may also qualify for exemptions.
Each program has its own application process and annual deadlines, usually in the spring.
For detailed requirements and forms, visit the Virginia Beach Tax Relief Portal.
How to Appeal Your Property Assessment
If you believe your assessment is too high or based on inaccurate information, you have the right to appeal.
Step 1: Informal Review
- Contact the Assessor’s Office directly.
- Discuss your concerns and submit any documentation (appraisals, photos, comps).
- Often this step resolves the issue without a formal appeal.
Step 2: Board of Equalization (BOE)
- If you’re not satisfied after the informal review, you can file a formal appeal with the BOE.
Consider carefully WHEN you might want to take this action! If you plan to sell your home soon, you might want to leave the assessment as high as possible. On the other hand, if you intend to live in the property for the long run, trying to lower the assessment could save you a significant amount of money. - This independent board reviews assessments and holds public hearings.
- Evidence is required: recent comparable sales, contractor receipts, or independent appraisals.
Step 3: Circuit Court Appeal
- As a final option, property owners may appeal to the Virginia Beach Circuit Court.
- This route is more complex and may require legal representation.
📅 Deadline to Appeal: Typically in mid-May — check the Assessor’s website each year for the exact date.
How Assessments Affect Buyers and Sellers
For Buyers
- The assessment helps estimate annual property taxes.
- Important during escrow and budgeting.
- Be aware: your first tax bill may differ from the seller’s if the assessment increases post-sale.
For Sellers
- A low assessment may be used by buyers to argue a lower offer.
- A high assessment may discourage interest if it implies higher taxes.
- Understand how your assessment compares to market value when pricing your home.
Strategies to Manage Your Property Tax Burden
- Monitor your assessments yearly. Don’t ignore them — you only have a short window to challenge errors.
- Save documentation for home improvements, repairs, or damage. These may help reduce your assessment if needed.
- Understand your rights and options for relief programs.
- Consult a real estate attorney if you feel your property rights are being affected or if you face a complex appeal.
Frequently Asked Questions
Is my assessed value the same as my home’s market value?
Not necessarily. Assessed values are calculated using mass appraisal techniques and may lag behind actual market conditions.
Can my assessment go up even if I haven’t changed anything?
Yes. If market values increase in your neighborhood, your property’s assessed value may rise based on comparable sales.
When are property taxes due in Virginia Beach?
Taxes are billed twice per year — typically due on June 5 and December 5.
What happens if I don’t pay my real estate taxes?
Failure to pay may result in penalties, interest, and eventually a tax lien or foreclosure action by the city.
Conclusion
Understanding how real estate tax assessments work in Virginia Beach can help you:
- Budget more effectively,
- Avoid overpaying on your tax bill, and
- Protect your rights as a property owner.
Whether you’re a long-time resident or a first-time buyer, keeping an eye on your assessment and knowing when and how to appeal could save you thousands over the life of your homeownership.
For more information or to appeal your assessment, visit the Virginia Beach Real Estate Assessor’s website.