How Do Property Tax Rates Compare to Nearby Cities?
When considering buying a home, especially in Hampton Roads, property taxes are one of the biggest line items to understand. Whether you're looking to settle in Virginia Beach or comparing costs across nearby cities like Norfolk or Chesapeake, knowing the local property tax rates can help you better estimate your long-term expenses and sometimes even impact your home buying decision.
Understanding these rates is essential for budgeting and financial planning. Even small differences in tax rates can lead to significant variations in annual property tax bills, especially when considering properties of substantial value.
To provide a clearer comparison, here's a snapshot of the current real estate tax rates:
Virginia Beach: $1.03 per $100 of assessed value
Norfolk: $1.23 per $100 of assessed value
Chesapeake: $1.01 per $100 of assessed value
Suffolk: $1.07- 1.31 per $100 of assessed value depending on the area
Portsmouth: $1.30 per $100 of assessed value
Hampton: $1.15 per $100 of assessed value
Newport News: $1.18 per $100 of assessed value
As you can see, Virginia Beach and Chesapeake rates are among the lowest in the region. For buyers looking to maximize their purchasing power without compromising on amenities or location, this can make a noticeable difference over time.
While tax rates are only one part of the equation, they can affect your monthly mortgage payment if you are escrowing taxes with your lender. For example, two homes with the same price tag could result in different monthly payments depending on which city they are in. Lower tax rates also allow room for buyers to afford a slightly higher home price or to allocate more toward renovations, insurance, or savings. For investors and landlords, a lower tax rate often means stronger cash flow and more flexibility with rental pricing.
Keep in mind that each city may have additional fees or assessments. It's also important to note that assessed value is not always equal to market value. Cities conduct periodic assessments to determine property value, and these can fluctuate over time.
Whether you are buying your first home, relocating from another city, or expanding your investment portfolio, understanding property tax rates can help you make a smarter financial decision. If you want help calculating taxes on a specific property or comparing costs between neighborhoods, I am happy to walk you through it step-by-step. Local knowledge can make all the difference when planning your next move.
For more information check out these links:
Norfolk: https://www.norfolk.gov/FAQ.aspx?TID=48
Virginia Beach: https://assessor.virginiabeach.gov/tax-rates
Chesapeake: https://www.cityofchesapeake.net/948/Real-Estate-Assessors-Office
Newport News: https://www.nnva.gov/277/Real-Estate-Assessor