Virginia is one of the few states to levy specific grantor taxes based upon a property’s purchase price. The state also requires deed taxes, which are paid by the purchaser, as well as mortgage taxes assessed by both the state and county where the property is located and which are based upon a tiered schedule.

Congestion Relief Taxes

Multiple counties, primarily in northern Virginia, have an additional “congestion relief” tax. This amounts to an additional grantor’s tax imposed on real estate transactions within applicable regions. Proceeds from the tax are passed on to the Northern Virginia Transportation Authority fund for the purposes of addressing traffic and congestion issues in those areas.

Assessed Value vs. Actual  Purchase Price

It is notable that, in Virginia, where a property’s assessed value exceeds the actual purchase price, transfer taxes are based on the former. This, in turn, impacts the applicable county and state deed and grantor taxes, as well as the title insurance premium. 

Refinance Implications

Finally, with regard to refinance transactions, mortgagees paying off an existing loan receive a discounted mortgage tax, based upon a tiered schedule of reduced rates.

Last edited July 14, 2023

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