Loudoun County Budget Approved With Lower Real Estate, Car Tax Rates

LOUDOUN COUNTY, VA — Loudoun County residents will see some tax relief in the latest budget approved by the Board of Supervisors on Tuesday.

The Loudoun County Board of Supervisors approved a $4.7 billion budget as well as a $3.8 billion amended six-year capital plan. The budget lowers the real estate tax rate from $0.865 cents per $100 in assessed value to $0.805 cents per $100 in assessed value. The county government says the average homeowner's tax bill will fall from $6,337 to $6,280 in the 2025 tax year.

The car tax rate will also go down from $4.15 per $100 in assessed value to $3.09 per $100 in assessed value in the 2026 tax year. The $4.15 per $100 of assessed value rate will remain for the 2025 tax year, and the same $4.15 rate will apply to general personal property in the 2025 and 2026 tax years.

For Loudoun County Public Schools, the budget fully funds a requested increase of $111.8 million to the county's contribution. The Loudoun County School Board had approved a more than $1.9 billion budget in February, but that is subject to county, state and federal revenues. The board has also reserved $8 million in county contingency funds due to uncertainty in revenue changes from the Virginia budget. Federal funds make up a small portion of the LCPS budget, and Superintendent Aaron Spence doesn't expect any short-term impacts from a shakeup to the U.S. Department of Education.

The county's operating budget includes a $22 million increase to continue core services and $24.7 million for employee pay. General county workers will receive a 4 percent merit increase. Fire and rescue personnel will receive a 2.5 percent salary scale increase and step increase, resulting in an average 5.5 percent increase. Sheriff's deputies will receive a 5 percent salary scale adjustment and step increase, resulting in an average pay increase of 8 percent. The budget will add 240 new staff positions, including some for new facilities opening in the next two years.

The board also opted to add $17.3 million for affordable housing from a full penny of the real estate tax rate to fund affordable housing needs. The Board of Supervisors added $39.7 million for its revenue stabilization fund, created in 2023 to address differences between projected and actual revenues from data centers. County Executive Tim Hemstreet noted in the budget proposal that significant data center tax revenue allowed him to recommend tax rate decreases.

The $3.8 billion six-year capital budget includes limited new projects. Some highlights include construction funding for Elementary School-36 co-located with Watson Mountain Middle School, accelerated design funding for Cascades Library and Senior Center Complex renovations, a Belmont Ridge Road pedestrian and bicyclist crossing over Dulles Greenway, and funds for future Route 15 widening between Montresor Road and Lucketts Bypass. The Ryan Road widening project between Evergreen Mills Road (Route 621) and Beaverdam Drive was reduced by over $32 million due to a developer funding through a proffer.

Transportation projects make up the largest share of the capital budget — 40 percent — followed by 33 percent for general county projects and 27 percent for LCPS projects.

The latest budget takes effect on July 1, 2025. However, taxpayers should be aware that the real estate tax rate of $0.805 per $100 of assessed value and the personal property tax rate of $4.15 per $100 of assessed value will apply to spring tax collections.

The county government will share the full approved budget documents before the new fiscal year. More on the budget proposal is available at loudoun.gov/budget.