Virginia Beach Raises Real Estate Tax Rate; Bills Change June 2027

The City of Virginia Beach adopted its fiscal year 2027 operating budget on June 16, 2026, which includes a 2-cent increase in the real estate tax rate to $1.04 per $100 of assessed value. This change applies to all residential and commercial properties within city limits and takes effect with the 2027 tax year assessments.

City budget documents released in May 2026 show the adjustment stems from higher projected costs for public safety staffing and school operations that exceed current revenue projections. The increase follows two years of flat rates held at $1.02 per $100 after the 2024 reassessment cycle.

Direct Effects on Household Costs

Homeowners in neighborhoods such as Kempsville and Great Neck will receive new assessed values in January 2027 based on 2026 market data. A median-valued home assessed at $450,000 would owe an additional $90 annually under the new rate, with the first half-year payment due by June 30, 2027.

Renters may encounter indirect effects through landlord adjustments to lease renewals scheduled after the tax bills arrive. Local business owners along Virginia Beach Boulevard report they will factor the added commercial property tax into 2027 operating budgets that cover payroll and inventory.

City finance records indicate the real estate tax generates $312 million of the $1.48 billion total general fund revenue for fiscal 2027. This figure represents a 4.1 percent rise from the prior year's collections and funds 21 percent of the education department allocation.

Assessment notices will be mailed by the Commissioner of the Revenue in February 2027, giving property owners 30 days to appeal valuations before final bills are prepared. Payments can be made in two installments, with the second due December 5, 2027.