Virginia Beach Property Tax: The Per-$100 Mechanic, FY2027's Flat Rate, and a Genuinely Strong Veteran Exemption

The Core Mechanic: Per $100 of Assessed Value, Reassessed Every Year

Virginia's property tax mechanic is structurally different from the two other systems this site has already documented. Florida (see this site's Destin guide) assesses homesteaded property at a capped percentage of market value versus a 10%-capped non-homestead rate, then applies a millage rate. South Carolina (see this site's Myrtle Beach guide) assesses property at either 4% of fair market value for an owner-occupied legal residence or 6% for everything else, then applies a millage rate measured in mills. Virginia does neither. Every locality in the Commonwealth, Virginia Beach included, sets its own real estate tax rate expressed as dollars and cents per $100 of assessed value, and Virginia Beach's own Real Estate Assessor reassesses property annually — not every two, three, or five years, which is common practice in many other states.

That annual-reassessment detail matters as much as the rate itself. Because assessed value and the tax rate are two independent levers, a city council can hold the rate perfectly flat year over year and still raise most homeowners' actual bills simply by letting rising assessments do the work — which is exactly what happened for fiscal year 2027, described below.

FY2027: The Rate Held Flat at $0.97, But Assessments Rose About 6%

Per WTKR's May 2026 reporting, Virginia Beach City Council approved a nearly $2.9 billion FY2027 budget on May 14, 2026 (effective July 1, 2026) that held the real estate tax rate at 97 cents ($0.97) per $100 of assessed value — unchanged from the prior year. Citywide assessments, meanwhile, rose an average of roughly 6% due to climbing property values. The council approved the flat rate unanimously, despite public pushback from residents who argued that holding the rate steady while assessments climb is itself a tax increase in practice.

One resident testifying against the flat rate put it directly: "When you raise our assessments and you don't lower the rate, you are actually increasing our taxes." As a partial offset, the council approved modest relief — up to an $80 personal-property-tax credit per vehicle plus a $77 real-estate-tax credit. The same resident was unimpressed with that offset: "$157. That's three bags of groceries now."

The arithmetic here is worth spelling out for anyone budgeting a purchase: on a home whose assessed value rises 6% while the rate stays at $0.97 per $100, the resulting tax bill rises by roughly that same 6%, before any credits are applied. A flat headline rate is not the same thing as a flat tax bill in a market where reassessments happen every year and are currently trending upward.

A Separate Number: The 0.80% Effective Rate, Not Reconciled to the $0.97 Nominal Rate

A second figure worth knowing is genuinely different from the $0.97-per-$100 nominal rate above, and the two should not be confused with each other. taxbycounty.com states Virginia Beach's effective property tax rate — actual tax paid as a percentage of home value, a different calculation than the nominal per-$100 rate — at 0.80%, which it describes as above Virginia's statewide average of 0.68%. That same source pairs the 0.80% figure with a stated median home value of $382,500 and a median annual tax bill of $3,061.

This research could not independently reconcile the 0.80% effective rate against the $0.97 nominal per-$100 rate — the two come from different sources measuring different things (one is a statutory rate applied to assessed value, the other is a backed-out effective rate against market value), and they should be stated separately rather than treated as the same number or converted into each other without a primary-source calculation. Anyone budgeting a specific purchase should get an actual, parcel-level tax estimate from the City of Virginia Beach's Real Estate Assessor rather than applying either percentage to a purchase price.

Senior and Disabled Tax Relief: Two Tiers, Both With a $350,000 Net-Worth Cap

Homeowners age 65 or older, or those who are totally and permanently disabled, may qualify for one of two relief programs administered by the Commissioner of the Revenue. Applicants in the disabled category also receive a $10,000 income exclusion when their income is calculated for eligibility purposes.

The first option is an exemption tier, where the percentage of relief varies by income level up to an annual household income ceiling of $87,419. The second is a freeze tier, which locks the tax bill at a fixed dollar amount rather than reducing it by a percentage, available up to a higher income ceiling of $114,062. Both tiers share the same asset test: a $350,000 net-worth cap that excludes the value of the home itself and up to 10 acres of land it sits on.

Applications are accepted by appointment only, and only during a specific window each year: February 1 through June 30, through the Commissioner of the Revenue's office. Missing that window generally means waiting for the next annual cycle, so anyone who expects to qualify should plan around those dates rather than applying whenever convenient.

100% Disabled Veterans: A Full Property Tax Exemption, Not a Partial One

The strongest tax benefit on this page, by a wide margin, is available to veterans rated by the U.S. Department of Veterans Affairs as having a 100% service-connected, permanent and total disability. Per the city's own Real Estate Assessor, those veterans receive a full exemption from real estate tax on their principal residence — not a percentage discount or a capped credit, but the entire bill eliminated. The exemption applies under Virginia Code § 58.1-3219.5, and property jointly owned with a spouse still qualifies.

The exemption also survives the veteran's death in most cases: a surviving spouse retains it if the veteran died on or after January 1, 2011, provided the spouse doesn't remarry and continues occupying the home as a primary residence.

This is a materially stronger benefit than the partial exemptions most other states offer disabled veterans, and it's especially relevant here: Naval Air Station Oceana anchors a Navy community of roughly 20,000 active-duty personnel and their families in and around Virginia Beach, a substantial share of whom will separate from service, retire, or be medically discharged with a disability rating over time. This research could not confirm whether the exemption carries any additional income or net-worth cap beyond the 100%-disability requirement itself — unlike the senior/disabled programs above, no asset test was found documented alongside it, but that absence should be confirmed directly with the Commissioner of the Revenue rather than assumed. A qualifying veteran or surviving spouse should apply directly through that office rather than assuming eligibility from this summary alone.

A Professional-Consult Disclaimer

Property tax figures — the per-$100 rate, effective rates, income and net-worth thresholds, and application windows — change from year to year and can vary parcel by parcel. Nothing on this page is legal, tax, or financial advice. Before making a purchase, budgeting a tax bill, or applying for senior, disabled, or disabled-veteran relief, confirm current figures directly with the City of Virginia Beach's Real Estate Assessor, the Commissioner of the Revenue, or a qualified Virginia tax professional.