How Do Property Taxes Work in Richmond, VA?

by Khaliyah Heaven Barakhyahu

If you're thinking about buying a home in Richmond, you've probably spent a lot of time thinking about the purchase price and your mortgage payment. One expense that's just as important—but sometimes gets less attention—is property taxes.

We talk with buyers who understand they'll have property taxes but aren't quite sure how those taxes are calculated, when they're paid, or how they affect the monthly mortgage payment.

The good news is that property taxes aren't difficult to understand once you know the basics.

If you're buying a home in Richmond VA, knowing how property taxes work can help you estimate your true monthly housing costs and avoid surprises after closing.

How Are Property Taxes Calculated in Richmond?

For properties located within the City of Richmond, real estate taxes are based on the property's assessed value.

The City Assessor determines the fair market value of real property, and Virginia law requires assessments to be at 100% of fair market value. Richmond's current real estate tax rate is $1.20 for every $100 of assessed value.

For example, if a home has an assessed value of $400,000, the basic calculation would look like this:

$400,000 ÷ $100 = $4,000

$4,000 × $1.20 = $4,800 in annual real estate taxes

That works out to about $400 per month when divided across 12 months.

Keep in mind that the tax rate and assessed value can change, so buyers should always verify the current numbers for the specific property they're considering.

Assessed Value and Purchase Price Aren't Necessarily the Same

This is an area that can confuse buyers.

The price you agree to pay for a home and the property's assessed value aren't necessarily the same number.

Your purchase price is what you and the seller agree the home is worth for the transaction. The assessed value is determined by the City Assessor for property-tax purposes.

A home's assessed value can change over time as market conditions and property characteristics change.

When you're looking at Richmond VA homes for sale, it's helpful to review the current assessment and tax history, but you shouldn't automatically assume the existing tax bill will remain exactly the same throughout your ownership.

When Are Richmond Property Taxes Due?

For properties within Richmond city limits, real estate taxes are billed in two installments. According to the City of Richmond, the first-half payment is due January 14 and the second-half payment is due June 14.

That doesn't necessarily mean you'll personally write two checks to the City every year.

Many homeowners with mortgages pay their property taxes through an escrow account managed by their mortgage servicer.

Are Property Taxes Included in My Mortgage Payment?

For many homeowners, yes.

If your mortgage has an escrow account, a portion of your estimated property taxes is collected as part of your monthly mortgage payment.

Your lender or mortgage servicer holds that money and then uses it to pay the tax bill when it becomes due.

This can make budgeting easier because instead of receiving a large tax bill and having to come up with the money all at once, you're essentially setting aside part of the expense each month.

Your mortgage payment may therefore include principal, interest, property taxes, homeowners insurance, and possibly mortgage insurance.

That's why we encourage buyers to focus on their total monthly housing payment, not just principal and interest.

Can My Property Taxes Increase?

Yes.

Even if the City's tax rate stays the same, your property tax bill can change if the assessed value of your home changes.

For example, if property values in your area rise and your home's assessment increases, your annual tax bill could increase even if the tax rate remains unchanged.

The reverse can also happen.

This is an important consideration when you're determining how much home you can comfortably afford. Your housing expenses aren't necessarily frozen at the amount you pay during your first year of ownership.

What If I Think My Assessment Is Too High?

Property owners do have the ability to appeal their assessment.

The City of Richmond provides an assessment appeal process through the Assessor's Office. The deadlines matter, so homeowners who disagree with an assessment should review the current appeal requirements rather than waiting until the tax bill is due.

An assessment increasing doesn't automatically mean it's incorrect, but homeowners have the right to review the information and use the City's appeal process when appropriate.

Does Every "Richmond" Home Have the Same Property Tax Rate?

No, and this is especially important for buyers moving into the area.

A home with a Richmond mailing address isn't necessarily located within the City of Richmond.

Properties throughout the greater Richmond area may actually be located in Henrico County, Chesterfield County, or another surrounding locality. Those jurisdictions establish their own real estate tax rates and assessment processes.

That means two similarly priced homes in the Richmond area can have different property-tax obligations simply because they're located in different jurisdictions.

A knowledgeable Richmond Realtor can help you identify the actual locality before you compare the ownership costs of different homes.

Are There Property Tax Relief Programs?

Richmond does offer real estate tax relief for certain qualifying homeowners.

For example, the City's Older Adults and Persons with Disabilities Real Estate Tax Relief Program provides exemption or freeze options for qualifying residents who meet age or disability requirements as well as applicable income and financial-worth requirements. Richmond also provides information about exemptions for qualifying disabled veterans.

Eligibility rules can change, so homeowners interested in tax relief should verify current requirements directly with the City rather than assuming they qualify.

Why Property Taxes Matter When You're Comparing Homes

Let's say you're considering two homes with similar purchase prices.

At first glance, the monthly payments may appear almost identical.

But if the homes are located in different jurisdictions or have different assessed values, the total monthly housing costs may be different once property taxes are included.

That's why we encourage buyers to compare more than asking prices.

Look at the mortgage payment, taxes, insurance, HOA fees if applicable, utilities, and expected maintenance.

The home that looks less expensive online isn't always the one that costs less to own.

Understanding the Full Cost of Homeownership

Property taxes are simply one part of owning a home, but they're an important part.

Before making an offer, take the time to understand the property's current assessment, tax rate, tax history, and the jurisdiction where the home is actually located.

When you understand those numbers before closing, it's much easier to create a realistic budget and choose a home you can comfortably afford.

Khaliyah Heaven Barakhyahu and the Richmond VA real estate team at New Canaan Properties help buyers throughout Richmond and Central Virginia look beyond the listing price and understand the bigger financial picture. From property taxes and HOA fees to financing and ongoing ownership costs, we want our clients to understand what owning a particular home may actually look like before they make an offer.

FAQs

How much are property taxes in Richmond, VA?

For property located within the City of Richmond, the current real estate tax rate is $1.20 per $100 of assessed value. Your actual tax bill depends on the property's assessed value.

How are Richmond property taxes calculated?

The property's assessed value is divided by $100 and then multiplied by the City's real estate tax rate. Richmond assessments are based on 100% of fair market value.

When are property taxes due in Richmond?

The City currently bills real estate taxes twice a year, with payments due January 14 and June 14.

Are property taxes included in my mortgage?

They often are if your mortgage includes an escrow account. Your lender collects part of the estimated tax expense with your monthly payment and pays the tax bill when it's due.

Can property taxes increase after I buy a home?

Yes. Your property's assessed value can change, and the City's tax rate can also change in the future, which means your tax bill isn't necessarily fixed for as long as you own the property.

Is a Richmond mailing address the same as being in the City of Richmond?

Not necessarily. Some properties marketed as being in the Richmond area are located in surrounding jurisdictions, so buyers should confirm the property's actual locality when calculating taxes.

Can a Richmond Realtor help me understand property taxes?

Yes. A Richmond Realtor can help you identify the property's jurisdiction, review available tax and assessment information, and incorporate those costs into your overall home-buying budget.

A Local Perspective

Khaliyah Heaven Barakhyahu and the team at New Canaan Properties help buyers throughout Richmond and Central Virginia understand the complete cost of homeownership before they make a decision. Property taxes may not be the most exciting part of buying a home, but knowing how they affect your monthly payment can prevent surprises later. We believe buyers should understand the numbers clearly so they can choose a home that fits both their lifestyle and their budget.

Khaliyah Heaven Barakhyahu
Real Estate Team Leader at New Canaan Properties
Based in Midlothian

Helping buyers and sellers across Richmond and Central Virginia with the support of a dedicated real estate team focused on clear guidance and results.

New Canaan Properties
804.312.3405