Real Estate taxes are going up. The City Manager’s proposed budget increases the real estate tax rate by $0.095 to $1.125 per $100 of assessed value. For CY 2025, the average City resident’s (assessed value of $694,503) annual real estate tax bill would raise the average annual bill by $1,126.
According to the City Manager’s proposed budget, the real estate tax rate necessary to provide residential equalization, whereby the average homeowner would pay no more in taxes than in the prior year, equates to $0.9629 per $100 of assessed value. The real estate tax necessary to provide commercial equalization equates to $1.0237 per $100 of assessed value and a combined equalization rate of $0.9843 per $100 of assessed value.
The council’s decision to adopt a higher advertised rate provides flexibility to address potential economic uncertainties before the final budget vote on May 6. Council members Anthony Amos, Billy Bates, Stacey Hardy-Hardy Chandler, and Rachel McQuillen voted in favor, while Stacy Hall and Tom Peterson opposed.
Key Components of the FY2026 Advertised Budget Proposal:
Real Estate Tax Rate: $1.150 per $100 of assessed value, a $0.120 increase.
Meals Tax Rate: Increase from 4% to 6%, marking the first adjustment in 21 years.
The Wastewater Utility Rate is also increasing by 6.0% to fund capital and operating costs and the Stormwater Utility Fee is increasing by 6.0%, with an estimated annual bill increase of $9.70 for a typical residential property.
All other tax rates, including commercial real estate tax, Old Town Service District tax, and personal property tax, will not change.
School Funding: $71,427,547 allocated for the City School Board’s tuition contract with Fairfax County Public Schools, plus a $3 million allocation to initiate a school bond program.
Employee Compensation: A proposed 3.5% merit increase for general employees.
The public comment period will stay open until April 8th so anyone who would like to make a public comment on their opinions on the budget can make a comment.
Remainder FY26 Budget Review Schedule
April 1: Budget work session
April 8: Budget public hearing, budget work session, introduction of proposed C&I, wastewater, storm utility, and Old Town Service District rates
April 22: Public hearing for proposed real estate tax rate, C&I, wastewater, stormwater utility, and Old Town Service District rates; introduction of the FY 2026 proposed budget appropriations; FY 2025 quarterly financial review; budget work session
May 6: Public hearing on proposed FY 2026 budget appropriations; budget adoptions
