Real Estate Tax Rate Hike In Adopted FY 2027 Budget In Arlington

ARLINGTON, VA — Arlington County Board voted Wednesday to adopt a $1.7 billion balanced budget for fiscal year 2027, a 0.7 percent increase over FY 2026. The board also voted 4-1 to adopt a 2-cent real estate tax rate increase, changing the rate from $1.033 to $1.053 per $100 of assessed value. Board member Susan Cunningham voted no.

The tax rate increase will raise the average real estate tax payment by $466 for homeowners, based on the average home value of $882,900, according to the county. The average apartment renter could see an increase of $317, based on an average apartment value of $373,772 and assuming the increase is passed on by a landlord.

Chair Matt de Ferranti said, "The budget we adopted last night is not an easy one: it prioritizes public safety and serving our most vulnerable," Chair Matt de Ferranti said. "I am keenly aware that raising tax rates when our federal employees and community as a whole are under attack is not an easy ask. I hope and respectfully submit that the choices we made are sufficiently aligned with Arlington's ideals as to be worthwhile as we work to meet this difficult moment."

READ: Supplemental FY2027 Budget Guidance

The adopted budget includes investments in county employee compensation, public safety, housing and Arlington Public Schools. Under the county's revenue-sharing principles, the transfer to Arlington Public Schools will increase by 1.2 percent to $655.4 million, including $654.3 million ongoing and $1.1 million one-time.

The FY2027 adopted budget includes:

• County Workforce Stability: Increases in employee compensation that account for the majority of the overall increase in County investment. This is for both collective bargaining (as outlined in agreements, and with police and fire in particular receiving higher increases to address vacancies and mandatory holdovers) and non-bargaining staff (3 percent merit increase) and includes increases in employee healthcare premiums and deductibles to address rising healthcare costs;
• Arlington Public Schools: Per the county's revenue sharing principles, the transfer to APS will increase by 1.2 percent to $655. 4 million ($654.3 million ongoing and $1.1 million one-time). The FY 2027 adopted transfer amount includes the addition of $2.2 million in ongoing funds and $1.1 million in one-time funds from the additional 0.5 cent real estate tax rate increase approved at the mark up work session along with $1.8 million in ongoing funding from the additional PPTRA changes;
• Housing Support: $100.3 million dedicated to housing programs; and
• Personal Property Tax Relief Act: Full tax relief on the first $4,000 of vehicle value, up from $3,000 in CY 2025, with taxes on the remaining vehicle value up to $20,000 relieved at 13 percent for conventional and clean fuel vehicles.

The county also approved additional funding for the Sheriff's Office, housing assistance, parks and recreation programs, the Cherrydale Library branch, the Commonwealth's Attorney Office, the Office of the Independent Policing Auditor, Vision Zero initiatives, food security mini grants and other items. The new fiscal year begins July 1, 2026.