Real Estate Tax Increase Possible In Fairfax City

FAIRFAX, VA — Fairfax City homeowners could see their annual real estate bill increase by an average of $625.84 if the City Council adopts the maximum real estate tax rate it set at its meeting on Tuesday night.

The council voted 4-3 to advertise a maximum real estate tax rate of $1.095 per $100 of assessed value for Fiscal Year 2027.

The decision establishes a legal ceiling for the upcoming budget. While the council can adopt a lower rate during final deliberations on May 5, it cannot exceed this advertised limit without restarting the public notification process.

For the average Fairfax City homeowner, the combined annual impact of the advertised tax rate and utility fee increases is estimated at $680.68, or approximately $56.32 per month. This total does not include the additional costs associated with the 0.5 percent meals tax increase.

The advertised rate is higher than the $1.08 rate originally proposed by City Manager Daniel Alexander.

Also See ...

• Fairfax City Manager Proposes FY27 Budget With Tax Rate Adjustments
• Rising Costs Of Willard Sherwood, Other Projects Addressed By City Council
• Tie Votes On Willard-Sherwood Project Alarm Fairfax County Official

Councilmembers Anthony Amos, Stacey Hardy-Chandler, Billy Bates, and Mayor Catherine Read voted in favor of the higher ceiling to provide more budgetery flexibility. Councilmembers Stacy Hall, Tom Peterson, and Rachel McQuillen voted against the motion.

Residential Financial Impact

The potential increase for homeowners is driven by two factors: a 4-cent hike in the tax rate (up from the current $1.055) and a projected 4.58 percent average increase in property assessments.

Estimated Tax Increases By Property Value

Utility Fees And Additional Taxes

The proposed budget also includes adjustments to utility rates and the city’s meals tax:

• Wastewater Utility Fee: A proposed 6 percent increase, adding approximately $44.65 to the average annual residential bill.
• Stormwater Utility Fee: A proposed 5 percent increase, adding approximately $10.19 to the average annual residential bill.
• Meals Tax: A proposed increase from 4 percent to 4.5 percent

Total Combined Costs

For the average Fairfax homeowner, the combined annual impact of the advertised tax rate and utility fee increases is estimated at $680.68, or approximately $56.32 per month. This total does not include the additional costs associated with the 0.5 percent meals tax increase.

FY 2027 Budget Plan Timeline

• March 10 - Public Hearing: FY 2027 budget public hearing; consideration of real estate tax rate to be advertised (A 30-day advance notice is required before a public hearing on the real estate tax rate when assessments increase more than 1 percent.)
• March 24 - Public Hearing: FY 2027 public hearing
• April 7 - Work Session: FY 2027 budget discussion work session
• April 14 - Public Hearing: FY 2027 budget public hearing; introduction of C&I, wastewater, stormwater utility and Old Town Service District rates; introduction of FY 2027 budget appropriations; budget work session
• April 28 - Public Hearing: FY 2027 public hearing for real estate tax rate; C&I, wast wastewater, stormwater utility and Old Town Service District rates; FY 2026 quarterly financial review; budget discussion work session
• May 5 - Adoption: Special Council Meeting — public hearing on FY 2027 budget appropriation; budget adoption.

City residents can use Engage Fairfax to provide feedback on the FY 2026 budget. They can also send an email to the mayor or City Council, speak at a council meeting or submit a video for a public hearing. Learn how to use all these tools at the City Meetings page.