Expanded Real Estate Tax Relief For Seniors, People With Disabilities Considered

FAIRFAX COUNTY, VA — The Fairfax County Board of Supervisors will consider expanding eligibility for seniors and people with disabilities to receive real estate tax relief. On Tuesday, the board set a public hearing for Dec. 7.

The expanded eligibility would allow people with higher incomes and net worth to qualify, add a new 75 percent tax relief bracket and provide a tax payment deferral option. The tax relief program's qualifications haven't been changed since fiscal year 2006. If approved, changes would happen in two phases over the next two years.

Starting Jan, 1, 2022, the maximum gross income to qualify for real estate tax relief (25 percent tax relief) is proposed to increase from $72,000 to $90,000. The cutoff for 50 percent tax relief is proposed to increase from $62,000 to $80,000. To qualify for 100 percent tax relief, the maximum income would increase from $52,000 to $60,000. In addition to proposed income eligibility changes, the net worth limit would increase from $340,000 to $400,000.

Other changes are recommended for Jan, 1, 2023. A new proposed bracket to qualify for 75 percent tax relief would be available to incomes up to $70,000. Starting Jan. 1, 2023, residents would also have the option to defer tax payments if their household has a maximum combined income of $100,000 and net worth of $500,000. Deferred taxes would collect interest at the Wall Street Journal prime rate plus 1 percent per year, or a maximum of 8 percent per year.

Tax relief for all tax relief brackets would be capped at 125 percent of the mean assessed value of Fairfax County homes. For example, a resident approved for 100 percent tax relief with a home value of $1 million would get $8,660 in taxes relieved and owe $2,740 in taxes. A resident with 100 percent tax relief and a home assessed at $759,000 would get $8,653 in taxes relieved and owe no taxes.

The tax relief program currently has 5,306 participants with 100 percent tax relief, 816 with 50 percent tax relief, and 517 with 25 percent tax relief. The county expects an additional 2,040 participants across the three brackets by expanding eligibility in 2022.

Fairfax County offers real estate and car tax relief for seniors 65 or older as well as people with disabilities who meet income and asset eligibility requirements. Exemptions are provided to disabled veterans or surviving spouses, surviving spouses of a service member killed in action, and surviving spouses of first responders killed in the line of duty. Next year's tax relief applications will open in January 2022 and be due on May 1, 2022.

Feedback may be provided on the proposed tax relief program changes. Provide written testimony to taxrelief@fairfaxcounty.gov or by mail to 12000 Government Center Parkway, Suite 225.5, Fairfax, VA 22035. Testimony may be provided at the Dec. 7 public hearing as well.