Virginia Tax Payment: What Landlords and Renters Need to Know

When you own rental property in Virginia, a U.S. state with specific rules for property owners and tenants. Also known as the Commonwealth of Virginia, it treats rental income as taxable income, and property taxes are assessed county by county. If you’re collecting rent, you’re not just managing a property—you’re running a business, and Virginia tax payment is part of the deal.

Landlords in Virginia must report rental income to both the IRS and the Virginia Department of Taxation. You can deduct expenses like repairs, property management fees, insurance, and depreciation, but only if you keep records. Miss a deadline, and you could face penalties. Tenants don’t pay property tax directly, but their rent often includes a share of the landlord’s tax burden—especially in tight markets where landlords pass costs along. In places like Fairfax County, affordable housing rules even require landlords to set aside units at reduced rates, which affects how taxes are calculated.

Property tax in Virginia isn’t uniform. In Richmond, you might pay 1.1% of your home’s assessed value. In Loudoun County, it could be 0.9%. The assessment happens every two years, and if you think your property was overvalued, you can appeal. Commercial property owners face different rules, especially if they’re leasing space to businesses—those taxes are often higher and come with additional reporting. And if you’re thinking about selling? Capital gains tax may apply, and Virginia doesn’t offer any special exclusions for primary residences if the property was rented out.

Virginia’s rental laws also tie into tax compliance. If you’re self-managing, you’re still responsible for filing state returns. If you hire a manager, they might handle payments, but the legal responsibility stays with you. The state doesn’t have a personal income tax exemption for rental income, unlike some other states. Even if you break even or lose money on a rental, you still need to file—and keep proof of every expense.

There’s no shortcut. You can’t ignore Virginia tax payment and hope it goes away. The state cross-checks 1099 forms from tenants and property management companies. If you didn’t report $12,000 in rent last year, they’ll find out. And while you might hear stories about landlords avoiding taxes, those are rare—and risky. The smarter move is to understand what you owe, when you owe it, and how to reduce it legally.

Below, you’ll find real guides from landlords who’ve been through it: how to file rental income in Virginia, what deductions actually work, how tenant rights affect your tax strategy, and what happens if you sell. No fluff. Just what you need to get it right.