Virginia Beach car owners will get up to $80 off each vehicle's 2027 tax bill

Starting with 2027 personal property tax bills, Virginia Beach will apply a 10.1% credit to the tax on the first $20,000 of each qualifying personal-use vehicle’s assessed value. The credit is capped at $80 per vehicle; on a car at the city’s average value of $11,913, it’s about $48. A household with two qualifying vehicles valued at $20,000 or more can save up to $160. You do not file a separate application; the city will build the credit into the bill.

Virginia Beach’s recent local tax relief had focused on real estate, which directly benefits property owners. After the City Council asked for relief that would reach the most residents, City Manager Patrick Duhaney proposed this vehicle credit, which also reaches people who rent. The city estimates about 495,000 registered personal vehicles, compared with roughly 113,000 residents who own real estate.

The one-time credit costs about $12.8 million. The city paid for it with higher-than-expected real estate revenue: it kept the real estate tax rate at 97 cents per $100 of assessed value while assessments rose about 6% on average, so many homeowners will still pay more in real estate tax. The council adopted the nearly $2.9 billion budget unanimously on May 12. Because personal property tax follows the calendar year, the credit starts with 2027 bills.