Car Demand Causes Higher Car Tax Bills For Some In Fairfax County

FAIRFAX COUNTY, VA — The average car tax bill increased in Fairfax County this year due to economic factors affecting car values.

Because car values normally depreciate, a car tax (personal property tax) bill from the county government typically falls year by year for the same vehicle. That's not the case this year as nationwide used car demand with limited supply has contributed to increasing car values. Car production has been impacted by supply chain shortages on key parts like chips, resulting in less new cars being produced and car values increasing across the U.S.

According to Fairfax County, car tax bills increased by 33 percent on average. The county says steep increases can be seen in the most popular car models. For example, the county cited the value of a 2020 Honda CR-V increasing from $24,925 last year to $33,175 this year based on J.D. Power values.

In response to the increasing car values, the budget passed by the Board of Supervisors approved a 15 percent reduction in the assessment ratio. That means cars are being assessed at 85 percent of the fair market value rather than 100 percent to calculate the car tax. Values come from the National Automobile Dealers Association pricing guide published by J.D. Power as of Jan. 1. The tax rate remains the same at $4.57 per $100 of assessed value.

State relief funds reduce some of the taxes owed. The Personal Property Tax Relief Act of 1998 covers a percentage of the taxes on the first $20,000 of assessed value. In addition, cars values at $1,000 or less will not owe taxes. Seniors and people with disabilities can receive car tax relief if they meet income and asset eligibility requirements.

Bills also include the local registration fee for Fairfax County. Residents of the towns of Clifton, Herndon or Vienna will have that local registration fee included on the car tax bill.

Car tax payments are due by Oct. 5. Car tax payments may be made online, in person at the Fairfax County Government Center, by phone at 703-222-6740 (third-party service fee applies), or by mail with check or money order with the envelope provided with your bill to Department of Tax Administration, 12000 Government Center Parkway, Suite 223Fairfax, VA 22035. Checks or money orders should be payable to County of Fairfax. Checks or money orders may also be put in a secure drop box at the Fairfax County Government Center or book drops at the Burke Centre Library, Dolley Madison Library, George Mason Regional Library, Oakton Community Library, Reston Regional Library or Sherwood Regional Library.

In-person payments are available 8 a.m. to 4:30 p.m. on weekdays at the Fairfax County Government Center, Suite 223. Extended hours of 8 a.m. to 6 p.m. on weekdays will be offered from Monday, Sept. 26 to Wednesday, Oct. 5.

See more information about the car tax on the county's website.