Richmond, the capital city of Virginia, is home to about 218,000 residents. As of the 2010 census, there were about 85,000 households and just over 92,000 housing units in the city. Real estate taxes collected in Richmond make up about 15 percent of the city’s operating budget each year. Tax revenue is used to fund infrastructure, garbage collection, animal control, schools, and other municipal benefits. The city estimates that untaxed real estate, such as churches and government sites, costs Richmond more than $72 million each year. To make up for that, each citizen pays about $0.36 per $100 in real estate taxes. Eleven cents per $100 covers tax abatements, which are primarily rehabilitation exemptions for restoring historic homes.
How Much Is Richmond Property Tax?
Richmond’s real estate tax rate is set by the City Council each year. Since 2011, the tax rate has been $1.20 per $100 of assessed value, a 35-year low. However, some new construction may fall under a different rate. The median list price of a home in Richmond is about $160,000, so the median real estate tax cost is about $1,920. For a single-family home at a median list price of about $140,000, the annual real estate tax would be $1,680. The median price of a condo or townhome in Richmond is about $224,000, so the real estate tax is a median $2,688. To find the real estate tax amount on any Richmond property, divide the assessed value by 100, then multiply this number by $1.20. The city’s website has a property search feature to view the current assessed fair market value of any real estate.
How Does It Compare In-State?
Richmond city residents pay one of the highest property tax rates in the state. This is in part because, as the state capital, Richmond has a higher percentage of untaxed government property than other locales. The state of Virginia’s average property tax as a percentage of property value is 0.74 percent. Tax rates vary widely by city and county. For example, in Charlottesville, the effective tax rate is 0.719 percent of assessed value. For Arlington, the rate is 1.164; for Chesapeake, .968; in Roanoke, it’s 1.045; Bristol pays 0.814; and Virginia Beach’s rate is 0.88 percent. The lowest rate in the state is rural Buchanan County, whose residents pay just 0.46 percent of their home’s assessed value.
How Does It Compare Nationally?
Richmond real estate tax is slightly lower than the national average. According to the Lincoln Institute, the US average effective tax rate for urban areas is 1.49 percent, while rural areas pay an average 1.345 percent. Among urban centers, New England states pay an average 2.085, Mid-Atlantic states pay 1.548, the South pays 1.131, the Midwest pays 1.979, the Southwest pays 1.357, and the Western states pay the lowest tax rate in the country at 0.989 percent. Some cities offer homestead exemptions, which can affect these rates. For example, Boston’s homestead exemption is up to 90 percent of market value, so Boston residents pay some of the lowest real estate taxes in the nation, while citizens in Bridgeport, Connecticut pay the highest
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How Are Fair Market Values Assessed?
Homes in Richmond are assessed annually. Elements that could change assessment values year to year include significant fluctuations in the market, home improvements, and demolition. Richmond primarily uses a combination of three factors to determine a home’s fair market value, and property inspections and evaluations are generally performed July through September. The assessor considers the value of comparable homes in the area that have recently sold. The assessor also calculates a probable replacement cost based on current material and labor markets, factoring in deterioration of the property. In the case of rental properties, they consider the potential income produced compared with the property owner’s operating and maintenance costs. Fair market values are entered in the Richmond Land Book by January 1st, and new assessments are mailed to home owners by January 25th.
Are There Tax Relief Programs?
The City of Richmond offers a tax relief program to qualifying seniors and disabled persons. Relief amount is based on income; eligible participants may qualify for 30 to 100 percent tax relief. The city also offers a tax freeze option, which protects against real estate tax increases. Requirements for either option include:
- Age 65 or older or fully and permanently disabled
- Total household income of $50,000 or less
- Less than $200,000 in total assets
Interested residents can pick up an application at City Hall, any library branch, or the Department of Social Services offices. Virginia also offers a real estate tax exemption to disabled veterans or their surviving spouses.
What Else Should I Know?
Real estate tax is due in two equal payments in January and June. However, you can participate in Richmond’s escrow program if you prefer to make monthly or other periodic payments. If you cannot pay your taxes in full, contact the city’s Delinquent Collection office for assistance. If you disagree with the assessor’s estimated fair market value of your property, you can file an appeal with the Real Estate Assessor’s Office or the Richmond Circuit Court. The filing deadline is in March.
2 Point Highlight
Richmond real estate tax is slightly lower than the national average.
Real estate taxes collected in Richmond make up about 15 percent of the city’s operating budget each year.
