Car Tax Relief Criteria Update Advanced By Loudoun Supervisors

LOUDOUN COUNTY, VA — Seniors and people with disabilities could see more car tax relief with a proposal advancing from the Loudoun County Board of Supervisors.

On Tuesday, the board approved a board member initiative seeking updates to personal property tax relief for seniors and totally or permanently disabled residents. The actions would update the income and net worth criteria to quality for the property tax relief, effective in tax year 2027, and provide a lower tax rate in tax year 2026.

Supervisor Koran Saines (D-Sterling) introduced the board member initiative. County staff will need to draft amendments to county code to make the changes.

"I introduced this [Board Member Initiative] to update Loudoun’s vehicle tax relief criteria for seniors and residents with disabilities," Saines shared on social media. "The proposal would bring them in line with the recently adjusted real estate tax relief program with changes that account for inflation, rising costs, and fairness across both programs."

The regular personal property tax rate on cars is $4.15 per $100 of assessed value, although the rate will be lowered to $3.09 per $100 of assessed value in tax year 2026. The rate for seniors and people with disabilities eligible for relief is $2.10 per $100 of assessed value, but the new property tax relief measure lowers it to $1.50 in tax year 2026.

In the current year, 1,113 vehicles were eligible for the lower tax rate. As of Sept. 25, the county estimated the relief was associated with $199,100 in lost revenue.

The current net worth limit to qualify for the personal property tax relief is $195,000, and the annual income limit is $52,000. The new update will align criteria with the real estate tax relief, which provides 100 percent relief for incomes up to $87,303 with a net worth up to $498,960. Exemptions of 50 percent are proposed for lower income limits with higher net worths. The qualifying criteria changes are set to take effect on Jan. 1, 2027.

In March, the board had approved the change to real estate tax relief for senior and disabled residents to increase the net worth criteria and qualifying household income. A provision to automatically provide an annual increase due to consumer price index changes will also take effect on Jan. 1, 2026.

Loudoun County first provided a tax relief program for senior and disabled residents in 1992 for the personal property tax on cars. The qualifying income and net worth criteria for the personal property tax had not been reviewed since 1998.