What happens if my property value increases?

In Virginia, if your property value increases after being assessed, then your property taxes also increase. This is because your property tax calculation is based on the assessed value of your property. The assessed value is essentially an estimate of the market value of your property. Each locality in Virginia is responsible for setting its own tax rate, determining how much of the assessed value is taxable, and calculating how much you owe in property taxes. When property values increase, the amount you owe in property taxes also increases. Property values typically increase when improvements or additions have been made to the property, or if there is an overall increase in the real estate market. To reduce the burden of an increase in property taxes, Virginia allows homeowners to appeal their assessments to the local board of equalization. This board reviews appeals and can make adjustments when the assessed value is incorrect. Additionally, Virginia law provides a real estate tax relief program known as the Circuit Breaker Program. This program provides tax relief to people who have low incomes, are disabled, or are elderly. Under the program, eligible homeowners can receive a partial or full exemption of their real estate taxes. Overall, if your property value increases in Virginia then your property taxes increase as well. However, there are resources available to provide some relief, such as appealing your assessment to the local board of equalization or applying for the Circuit Breaker Program.

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What happens if my property value increases?

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