Virginia real estate: property tax, closing costs & insurance
Virginia keeps property tax below the national average and splits its deed taxes between buyer and seller by custom, but Northern Virginia counties layer extra regional fees that a generic statewide number will understate.
Property tax in Virginia
The effective rate runs about 0.78% of assessed value. Assessed at fair market value; no statewide cap on annual growth or broad homestead exemption. County reassessment cycles vary; effective rates range from ~0.41% to ~1.33% by locality (Tax Foundation, 2026).
Transfer tax & closing costs
Buyer customarily pays the state + local recordation tax on the deed ($0.25/$100 state + up to $0.083/$100 local, ~0.33% combined); seller pays the grantor’s tax ($0.50/$500, ~0.10%). Northern Virginia (Fairfax, Arlington etc.) adds an extra buyer-paid $0.10/$100 grantor tax plus Congestion Relief + WMATA Capital fees (~0.20/$100 combined) not modeled in this baseline. Recording runs a flat $75. Title insurance is customarily paid by the buyer, with a minimum owner’s premium of $150.
Insurance & capital gains
Coastal Hampton Roads/Virginia Beach carries wind and storm-surge exposure; inland Piedmont and Northern Virginia rates run meaningfully lower — treat this as a statewide approximation, not a coastal quote. Capital gains taxed as ordinary income under Virginia’s progressive brackets (2%–5.75%); no preferential long-term rate.
Worked example: a $350,000 ARV flip in Virginia
Six-month hold, $45,000 rehab, 15% target profit margin, all-cash. This is the same reverse waterfall the calculator runs — see it live for your actual property.
- After-repair value$350,000
- Rehab budget−$45,000
- Closing costs — acquisition−$5,875
- Closing costs — disposition−$18,750
- Holding costs, 6 months−$2,661
- Target profit, 15%−$52,500
- Maximum Allowable Offer$225,214
If you’re investing
Virginia’s transfer costs are unusually split: the buyer customarily pays the state and local recordation tax on the deed, while the seller pays a separate grantor’s tax — check both sides of your closing statement rather than assuming one party owes “the transfer tax.”
If this is your home
If you’re buying in Fairfax County or elsewhere in Northern Virginia, budget for the region’s extra grantor’s tax ($0.10/$100) plus the Congestion Relief and WMATA Capital fees (another $0.20/$100 combined, buyer-paid) on top of the statewide baseline — those regional add-ons aren’t in most generic Virginia closing-cost estimates.
Best suited for: Investors who want a below-average property tax rate and don’t mind a two-sided (buyer-and-seller) transfer-tax structure instead of one flat fee.
Virginia FAQ
Who pays the transfer tax in Virginia, the buyer or the seller?+
Both, but for different taxes. The buyer customarily pays the state and local recordation tax on the deed (about 0.33% combined), while the seller pays a separate grantor’s tax (about 0.10%). Northern Virginia adds an extra buyer-paid regional fee on top.
Does Virginia have a homestead exemption or assessment cap like Florida or California?+
No. Virginia assesses residential property at fair market value with no statewide cap on annual growth or exemption for owner-occupants — some localities offer limited relief for elderly or disabled homeowners, but there is no broad homestead program.
Is Virginia capital gains tax on a home sale different from ordinary income tax?+
No. Virginia taxes all capital gains, long-term or short-term, as ordinary income under its progressive brackets (2% to 5.75%) — there is no reduced state rate for long-term gains as there is federally.
See the exact number for your Virginia property
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Other state guides
Sources: state and county assessor publications, state department of revenue transfer-tax schedules, and title-rate manuals filed with each state’s insurance regulator, effective 2025-01-01. Figures are estimates for planning purposes, not tax or legal advice — confirm with a licensed professional before closing. How the calculator works