If you’re thinking about buying a home in Fredericksburg, Virginia, understanding the property tax system is an essential step in planning your budget and making smart decisions. While property taxes may not be the most exciting part of the buying process, they do play a significant role in your long-term homeownership costs.
The good news is that Fredericksburg’s property tax structure is relatively straightforward once you break it down. This guide will walk you through how the system works, what to expect in terms of costs, and what questions to ask as a buyer.
How Property Taxes Are Calculated in Fredericksburg
Property taxes in Fredericksburg are based on the assessed value of your home and the current real estate tax rate. The City of Fredericksburg reassesses property values every four years to reflect current market conditions. Once your property is assessed, the city applies its tax rate to calculate what you owe.
For the 2025–2026 fiscal year, Fredericksburg's real estate tax rate is $0.80 per $100 of assessed value. In addition, there is a fire tax of $0.01 per $100 of assessed value. These rates apply to residential real estate within city limits.
As an example, if your home is assessed at $400,000, your annual tax bill would be calculated like this:
For the 2025–2026 fiscal year, Fredericksburg's real estate tax rate is $0.80 per $100 of assessed value. In addition, there is a fire tax of $0.01 per $100 of assessed value. These rates apply to residential real estate within city limits.
As an example, if your home is assessed at $400,000, your annual tax bill would be calculated like this:
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$400,000 ÷ 100 = 4,000
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4,000 × $0.80 = $3,200 (real estate tax)
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4,000 × $0.01 = $40 (fire tax)
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Total = $3,240 per year
When Are Property Taxes Due?
The City of Fredericksburg operates on a fiscal year calendar from July 1 through June 30. Real estate taxes are billed in two installments:
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First installment due December 5
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Second installment due June 5
If you're purchasing a home partway through the year, your closing attorney will typically prorate the taxes so both the buyer and seller pay their fair share for the year. This will be included in your closing disclosure.
What Is a Property Assessment?
A property assessment is the city’s estimate of your home’s fair market value. The assessment process considers several factors including the size of your home, location, number of bedrooms and bathrooms, condition, lot size, and recent comparable sales in the area.
The most recent general reassessment in Fredericksburg became effective July 1, 2024. These values are used for four years, but you may see a supplemental assessment if you make major improvements like an addition, garage, or finished basement.
It's worth noting that your home’s assessed value is not always the same as your purchase price. Sometimes the assessment is lower or higher, depending on market timing or property condition.
The most recent general reassessment in Fredericksburg became effective July 1, 2024. These values are used for four years, but you may see a supplemental assessment if you make major improvements like an addition, garage, or finished basement.
It's worth noting that your home’s assessed value is not always the same as your purchase price. Sometimes the assessment is lower or higher, depending on market timing or property condition.
Tax Relief and Exemptions
Fredericksburg offers several tax relief programs for eligible homeowners, including:
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Tax relief for elderly or disabled residents who meet income and asset thresholds
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Tax credits for rehabilitating historic properties within designated districts
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Tax incentives for certain types of commercial redevelopment
If you’re considering buying a historic home in downtown Fredericksburg, be sure to ask whether the property qualifies for any historic tax relief. These credits can significantly reduce your annual tax burden, especially during the first several years of ownership following improvements.
How to Estimate Property Taxes on a Home You’re Buying
When house hunting, it's smart to estimate the property taxes on each home you’re considering. You can usually find the most recent assessed value on the city’s real estate tax database or ask your real estate agent to provide it.
To estimate the tax bill, divide the assessed value by 100 and then multiply by the combined tax rate of $0.81 (which includes both real estate and fire tax). If you're looking at homes near $500,000 in value, expect annual taxes of around $4,050 based on that rate.
Also keep in mind that your lender will likely require property taxes to be included in your monthly mortgage payment as part of your escrow. This means a portion of your monthly payment will be set aside to pay taxes when they are due.
To estimate the tax bill, divide the assessed value by 100 and then multiply by the combined tax rate of $0.81 (which includes both real estate and fire tax). If you're looking at homes near $500,000 in value, expect annual taxes of around $4,050 based on that rate.
Also keep in mind that your lender will likely require property taxes to be included in your monthly mortgage payment as part of your escrow. This means a portion of your monthly payment will be set aside to pay taxes when they are due.
Appealing an Assessment
If you believe the city’s assessed value of your property is too high, you can file an appeal. Typically, this involves submitting documentation such as a recent appraisal, photos, or comparable sales to support your claim.
Appeals must be filed within a specific window after the new assessment notice is sent. While it may not affect your current year’s tax bill, a successful appeal can lower your long-term costs. Your real estate agent can help connect you with an appraiser or provide comparable sales to support your case.
Appeals must be filed within a specific window after the new assessment notice is sent. While it may not affect your current year’s tax bill, a successful appeal can lower your long-term costs. Your real estate agent can help connect you with an appraiser or provide comparable sales to support your case.
How Property Taxes Compare Regionally
Compared to some neighboring counties and cities in Northern Virginia, Fredericksburg’s property taxes are relatively moderate. Areas like Arlington and Alexandria tend to have higher tax rates and higher home values, resulting in significantly larger annual bills.
That said, property taxes in Fredericksburg can vary based on whether the home is inside city limits or located in Spotsylvania or Stafford County, which have their own tax systems. This is why it’s important to work with a local expert who knows how each jurisdiction operates and how taxes may affect your budget.
That said, property taxes in Fredericksburg can vary based on whether the home is inside city limits or located in Spotsylvania or Stafford County, which have their own tax systems. This is why it’s important to work with a local expert who knows how each jurisdiction operates and how taxes may affect your budget.
What Buyers Should Ask Before Making an Offer
Before you make an offer on a home, it’s wise to ask the following:
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What is the current assessed value of the property?
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When was the last reassessment completed?
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Are there any outstanding or future assessments for improvements?
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Does the home qualify for any tax relief programs or historic district credits?
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How much were the taxes for the past two years?
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Will the purchase price likely trigger a reassessment or supplemental assessment?
Having this information upfront can help you avoid surprises and ensure the property fits comfortably within your budget.
Let Tracey Farmer Help You Navigate the Details
Understanding the Fredericksburg property tax system is an important step in buying a home with confidence. From calculating expected tax bills to identifying properties eligible for exemptions or credits, there are many factors to consider.
When you work with Tracey Farmer, you’ll get more than a property search—you’ll get a local expert who knows the ins and outs of homeownership in Fredericksburg. She will walk you through how taxes affect your total monthly payments, help you compare properties accurately, and make sure you’re buying a home that aligns with your long-term goals.
Connect with Tracey to explore current listings, neighborhood insights, and personalized guidance for your home search. Let’s make your move to Fredericksburg smooth, smart, and financially sound.
When you work with Tracey Farmer, you’ll get more than a property search—you’ll get a local expert who knows the ins and outs of homeownership in Fredericksburg. She will walk you through how taxes affect your total monthly payments, help you compare properties accurately, and make sure you’re buying a home that aligns with your long-term goals.
Connect with Tracey to explore current listings, neighborhood insights, and personalized guidance for your home search. Let’s make your move to Fredericksburg smooth, smart, and financially sound.
