Buying A New Home in Alexandria VA - How Much Are Property Taxes?

housing costsAlexandria VA Homes For Sale - If you are in the market to buy a home in Alexandria VA, then you'll need to know what the property taxes are and how they are computed.  Odds are, your mortgage lender will require that you escrow (or set money aside each month) to use toward paying the real estate property taxes for your home.

When you find a home in Alexandria VA that you like, you will need to look at the asking price and the tax assessed value to calculate your mortgage payment.    The tax assessed value is the value that the local jurisdiction assigns to the property for tax collection purposes.  Keep in mind that the tax assessed value and the home's market value can be two totally different numbers.  Market values fluctuate throughout the year as homes change hands between buyers and sellers, whereas the property is assessed once per year.

In Alexandria VA (City), the tax rate is $1.038 per $100 of the total tax assessed value as of January 1, 2013. So, if the tax assessed value of your home is $450,000, here's how your property taxes would be calculated:

  1. Tax value = $450,000
  2. Divide the tax value by 100. So $450,000 / $100 = $4500
  3. Multiply the $4500 times the tax rate. $4500 x $1.038 = $4671
  4. $4671 is the yearly tax bill that is due to the City of Alexandria
  5. Divide the yearly tax bill by 12 to get the monthly tax bill. $4671 / 12 = $389.25

Real estate taxes are collected twice per year by the City of Alexandria, due by June 15 and November 15.  If your real estate taxes are escrowed in your monthly mortgage payment, this means that every month, your lender will set aside $389.25 to use toward paying your real estate taxes.  When the taxes are due, your lender pays Alexandria City directly.

At closing, part of your closing costs will include 1-4 months of property taxes that will be collected upfront to establish your escrow account.  This is one of those charges that is not a lender charge, not anything to do with the seller, but a charge to setup your tax account so that there are enough funds to pay the property taxes in full.

If you currently live in Alexandria VA and think your property taxes may be too high, find out what your home may be worth now.  I'll send you a list of homes that have recently sold within the past six to twleve months, and you can use that to  file an appeal.

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