May 7, 2024 - News

🙈 Car taxes are here

Illustration of top down car on dollar skid marks

Illustration: Eniola Odetunde/Axios

Some Richmonders are experiencing sticker shock when opening their annual car tax bills, which started hitting local mail and inboxes last week.

Why it matters: The tax break locals have been getting on their personal property bills since 2022 dropped significantly this year.

The big picture: Each year, every Virginia locality gets state funds to offer residents personal property tax relief on the first $20,000 of their car's assessed value.

Due to COVID-era surges in car values, Richmond City Council approved in 2022 a stair-step approach to how much car tax relief it would offer over the next three years.

  • In 2022, the city covered 50.4% of the total tax due on the first $20,000 of the car's assessed value.
  • In 2023, it was 36.6%.
  • This year, it's 22%.

Zoom in: So this year, on a car valued at $20,000, the total car tax due for locals is $577 ($740 before relief with the city covering $163).

  • Last year, the owner of a car with that same value would've owed $469, and $367 the year before that.

Worth noting: Richmond's suburban neighbors charge a lower car tax rate than the city and will offer a higher relief percentage this year, RVA5X5 reports.

Go deeper with how Richmond determines the car value

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