Car Tax Bill To Rise For Portion Of Fairfax County Vehicle Owners

FAIRFAX COUNTY, VA — Rising used car prices driven up by the COVID-19 pandemic will cause car tax bills to be higher for about 12 percent of Fairfax County vehicle owners, according to the county government.

The personal property tax is paid annually by vehicle owners for vehicles garaged in Fairfax County. The tax is calculated by finding the assessed value, dividing it by 100 and multiplying it by the tax rate ($4.57 per $100 of assessed value). Fairfax County uses the "clean trade-in value" from the J.D. Power Used Car Guide. Virginia's Personal Property Relief Act 1998 subsidizes a percentage of the tax on the first $20,000 of assessed value for personal use vehicles.

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While car value typically decreases every year, low supply and high demand for vehicles is increasing prices during the pandemic. Automobile manufacturers are impacted by a global chip shortage due to the pandemic, which affects their ability to make new cars. That has driven people to seek out used vehicles instead, which in turn drives up prices. County government also cited low interest rates and stimulus payments boosting car purchases.

In 2021, the average car tax bill will increase by $25 from last year for vehicles valued at $20,000 or less, according to Fairfax County tax officials. Car tax bills will start to be mailed to vehicle owners. Car tax bills will be due by Oct. 5.

Vehicle owners who believe their vehicle was overassessed can appeal of their taxes. The appeal can be based on body damage, rusting or high mileage, but the tax bill must still be paid by the due date.