Car Tax Assessment Changes Coming In 2026 To Some Vehicles In Loudoun County

LOUDOUN COUNTY, VA — The assessment methods to determine car tax bills will change for some vehicles in Loudoun County.

Loudoun County's Commissioner of the Revenue Robert S. Wertz Jr. announced changes to some personal and business use vehicle personal property tax assessment methods taking effect on Jan. 1. Vehicles are typically assessed for their value as of Jan. 1 of each year for personal property tax bills due twice per year.

According to the county, it will continue to use the J.D. Power Official Used Car Guide to assess most vehicle values. However, new methods will be in place for newer model year cars, small pickup trucks, vans and SUVs not listed in the J.D. Power Official Used Car Guide. The changes will also affect boats, motorcycles, recreational vehicles, heavy trucks, and pull behind trailers. Wertz's office made the changes after PFM Group Consulting conducted a benchmarking study on vehicle assessments in Loudoun County and other Virginia localities.

For cars, trucks, vans, and SUVs, changes to the assessment methods will occur for vehicles not yet in the J.D. Power Official Used Car Guide due to limited sales data for newer vehicles.

For example, 2026 and subsequent model years (beyond the current calendar year) will be assessed at 95 percent of MSRP. Current year models will be assessed at 90 percent of MSRP, prior year models will be assessed at 80 percent of MSRP, and two-year prior models will be assessed at 70 percent of MSRP. Current year model vehicles have been assessed at 90 percent of MSRP and prior year model vehicles have been assessed at 75 percent of MSRP.

Personal use boats, motorcycles, recreational vehicles, and heavy trucks have been assessed at a percentage of the vehicle’s purchase price. New assessment methods will replace the percentages.

For boats and personal watercrafts, the used trade-in value from the ABOS Marine Blue Book will be utilized.

For campers, travel trailers and recreational vehicles, the used wholesale trade-in value from J.D. Power Valuation Guide will be used. For motorcycles, the clean trade-in value from the J.D. Power Valuation Guide will replace the current method. For tractor trucks and heavy trucks, the loan value from the J.D. Power Valuation Guide will be used.

Pull behind trailers like horse, utility and tractor trailers will continue to be assessed as a percentage of the purchase price. However, percentages will go up for some newer model years. For example, a current year model will be assessed at 80 percent for personal and business use, which is up from 70 percent for personal use and 60 percent for business use. The lowest rate will be 10 percent for seventh and prior years, compared to 20 percent for personal use and 10 percent for business use in fifth and prior years.

Taxpayers will see the assessment changes reflected on the next personal property tax bill due on May 5, 2026. The county started sending notices in December to taxpayers about the changes. Assessment values as well as the personal property tax rate affect tax bills. The Loudoun County Board of Supervisors' latest approved budget will lower the car tax rate from $4.15 per $100 in assessed value to $3.09 per $100 in assessed value in the 2026 tax year.

The county's website has a full guide to the assessment method changes.