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Fairfax County residents will soon get a chance to weigh in on a potential meals tax and a higher real estate tax rate that could push the average homeowner’s annual bill up by more than 8%.
The Board of Supervisors voted 9-0 on March 18 to advertise both proposals for public hearings on April 22 and 23. The board is expected to adopt the county budget on May 13.
The proposals would permit a meals tax of up to 4% beginning as early as January and establish a maximum real estate tax rate of $1.14 per $100 of assessed value. The current property tax rate is $1.125.
Board Chairman Jeff McKay emphasized that the advertised rates are ceilings. Supervisors may approve lower rates, but they cannot go above the amounts being presented to the public.
“We have a lot of time here,” McKay said, promising a “full and robust discussion” before the budget vote.
Springfield District Supervisor Pat Herrity, the board’s only Republican, was absent while recovering from health issues.
Meals tax could generate $65.1 million
Virginia law allows counties to impose taxes of up to 6% on restaurant meals and prepared food. The board’s action does not establish a Fairfax County meals tax, but it clears the way for supervisors to adopt one at a rate of up to 4%.
County staff estimates that a 4% tax would produce $65.1 million from January through July 2026. That projection accounts for $2.8 million in startup costs and limited reimbursements to restaurants and retailers for compliance expenses.
The revenue was not included in County Executive Bryan Hill’s proposed fiscal 2026 budget, which begins July 1. Supervisors, however, have discussed the possibility for months after directing county staff to study it during last year’s budget process.
Officials have estimated that a 3% meals tax would cost a middle-income Fairfax County family about $150 annually.
Some county leaders have suggested using the revenue to reduce or avoid a property tax rate increase. Others have said the money could soften the effects of cuts proposed in Hill’s budget.
Hunter Mill District Supervisor Walter Alcorn said he would have preferred advertising a maximum rate of 5%, with the additional revenue dedicated to affordable housing. He acknowledged that the idea lacked support from his colleagues.
Any county meals tax would be charged in addition to Virginia’s existing 6% sales tax. While sales tax proceeds are divided between state and local governments, all meals tax revenue would remain with the locality.
The tax would not apply within Herndon, Vienna or Clifton because those towns already levy their own meals taxes.
Fairfax County voters rejected meals tax referendums by wide margins in 1992 and 2016. The General Assembly removed the requirement for counties to seek voter approval five years ago.
Rising assessments drive property tax increase
The advertised real estate tax rate of $1.14 per $100 matches Hill’s recommendation and represents a 1.5-cent increase over the current rate.
That possible increase would come as residential assessments are already climbing. The average Fairfax County home assessment rose 6.7%, from $744,526 in 2024 to $794,235 in 2025.
At the advertised rate, the average property tax bill would increase from $8,376 to $9,054—an additional $678, or just over 8%.
“This is the cap,” McKay said of the proposed rate.
Average residential assessments increased in every magisterial district, ranging from 5.64% in Mason District to 7.33% in Sully District.
Single-family detached homes rose an average of 6.4% to $965,437. Townhouses and duplexes climbed 6.5% to $588,391, while condominiums increased 5.8% to $374,961.
Fairfax County bills real estate taxes twice a year. Homeowners either pay the county directly or have the payments handled through their mortgage servicer.