Do You Really Need to Pay Real Estate Property Taxes?

If you’re a homeowner, real estate property taxes can cost you thousands of dollars of each year. But you may be eligible to have those taxes fully or partially waived under the Fairfax County Property Tax Relief program. The county is now accepting applications for tax relief for the 2019 calendar year.

Are You Eligible for Property Tax Relief?

If you or someone you know meets these criteria, you may be eligible for Fairfax County tax relief:

• 65 years of age or older, or
• Permanently and totally disabled

If either of these apply to you, you’ve met the first test. (If not, you may still qualify for tax relief under different programs for disabled veterans and surviving spouses, U.S. Armed Forces personnel killed in action, or first responders killed in the line of duty).

If you own your home jointly with another person, only one of you must meet the test above to be eligible. If you will turn 65 during 2019, or become disabled during the year, you also meet the test for part of the year and can be considered for a partial waiver.

Next, you must meet these requirements:

• You’re a resident of Fairfax County, and
• You own your home and you occupy it year-round as your only dwelling

Do You Meet the Income and Asset Requirements?

If you are an eligible individual, then county looks at your income and assets to determine whether you qualify for relief and if so, how much of your taxes will be waived.

Income Limits

Your 2018 gross income from all sources can’t exceed $72,000. When calculating your gross income, you must include income received by your spouse, if married, and any relatives who live in the home with you. But there are exceptions:

• You can exclude the first $6500 of income received by relatives who live with you, other than a spouse. For example, Mary is 65 years old, unmarried, and had income of $30,000 in 2018. Her daughter, who lives with her, had $45,000 income. Their total income is $75,000, which exceeds the limit of $72,000. But because Mary can exclude the first $6500 of her daughter’s income – for a total combined income of $68,500 – she meets the income test.
• If you’re disabled, you can exclude $7500 of your own income from gross income for qualification purposes.

Asset Limits

If you meet the maximum income limit, the final test is your net worth. For 2019 property tax relief, the total value of your assets as of December 31, 2018 can’t exceed $340,000. Assets include your vehicle, bank accounts, retirement accounts, and other real property. But there are important exceptions to the asset limit, too:

• The value of your home, its furnishings, and up to one acre of the land it sits on is not counted toward your assets.
• Liabilities such as credit card debt, vehicle loans, and mortgages on other real property can be deducted from the value of your assets.

When calculating your assets, use your 2018 year-end statements and the assessed value of your vehicle listed on your 2018 Fairfax County Personal Property Tax bill. (If your vehicle is in worse than average condition and you think that value is too high, you may want to appeal your vehicle assessment too.)

How Much Property Tax Relief Will You Receive?

First, determine the amount of property tax you are responsible for in 2019 by reviewing your Fairfax County Real Estate Assessment statement.

If you are an eligible person and met the income and asset tests, your property tax relief is calculated as follows:

• 100% relief if your 2018 gross income after exclusions is $52,000 or less
• 50% relief if your 2018 gross income is after exclusions $52,001 to $62,000
• 25% relief if your 2018 your gross income after exclusions is $62,001 to $72,000

Ready to Apply for Property Tax Relief?

If you’ve never applied for Fairfax County property tax relief before, you can apply anytime from January 1 to December 31. Use the 2019 Application for Tax Relief and (if it applies to you) the Affidavit of Disability. You can also apply for a separate, retroactive waiver for 2018 taxes (using your 2017 income and assets).

Returning applicants automatically receive a renewal application in the mail and must file between January 1 and April 1, 2019. If you cannot meet this deadline, call the county to request a hardship extension.

Along with your completed application, you will need to provide official documentation including your federal tax return, bank statements, and credit card statements.

If you are approved for property tax relief, you will receive an official notice from Fairfax County. They will then notify your mortgage lender, who should adjust your monthly mortgage payments and/or process a refund for any taxes you already paid for 2019. Keep making your monthly payments as agreed until you receive notice from your lender that your account has been adjusted.

Questions?

If you have questions about the property tax relief program, call the Tax Relief Office at 703-222-8234, email them at taxrelief@fairfaxcounty.gov, or visit the county tax relief webpage.