Personal Property Tax on a Car in Virginia
Virginia imposes a personal property tax on vehicles, making car ownership slightly more expensive than in states without such a tax. This annual tax is based on the assessed value of your vehicle and is collected by the local government—usually your county or city of residence—rather than the state itself.
How the Personal Property Tax Works
Each locality determines the assessed value of your car using recognized pricing guides like the NADA (National Automobile Dealers Association) guide. The value is usually based on the fair market value as of January 1 of the tax year. Once the value is set, your locality applies a specific tax rate, often ranging between $3.50 to $5.00 per $100 of assessed value.
For example, if your car is valued at $15,000 and your locality’s rate is $4.20 per $100, your base tax would be: (15,000 ÷ 100) × 4.20 = $630
Tax Relief for Personal-Use Vehicles
Virginia offers relief through the Personal Property Tax Relief Act (PPTRA). If your car is used for personal, non-business purposes, the state may cover a portion of your tax—often between 30% and 50%—on the first $20,000 of assessed value. The exact percentage varies annually and by locality.
So, using the earlier example, if you’re eligible for 40% relief, your tax bill could be reduced to: $630 × 0.60 = $378
Keep in mind that any assessed value above $20,000 is taxed at the full local rate with no discount.
Who Must Pay?
All Virginia residents who own or lease vehicles registered in the state are subject to this tax. Even if your car is not used daily or is kept off the road, it is still taxable if registered in Virginia.
Payment Deadlines
The tax is typically billed annually, though deadlines vary by locality. For example:
- Loudoun County: May 1 and October 5 (two installments)
- Fairfax County: June 5
- Arlington County: October 5
Late payments may incur penalties and interest, and continued nonpayment can affect your ability to renew your vehicle registration.
Final Thoughts
The personal property tax on a car in Virginia depends on your vehicle’s value, where you live, and whether you qualify for state relief. To avoid surprises, check with your local Commissioner of the Revenue or Treasurer’s Office and explore ways to reduce your tax burden.
Dimov Tax is ready to present expert assistance. Contact us today for professional aid for full compliance.