Virginia Property Tax Relief Programs and Payment Plans

If you're behind on property taxes in Virginia, selling isn't the only option. Depending on your age, income, disability or military service, you may qualify for tax relief, and many treasurers will consider a payment plan. This guide covers the main programs available to Hampton Roads homeowners and when each one actually helps. If a tax sale is close, see our property tax auction help page.

Can You Get a Payment Plan for Delinquent Property Taxes in Virginia?

Often, yes. Virginia law lets treasurers enter into installment agreements for delinquent taxes. Under Va. Code §58.1-3018, the agreement is in writing, and the taxpayer generally has to stay current on new taxes while paying down the old balance.

What to expect from a payment plan

• Interest usually keeps running on the unpaid balance.
• Missing a payment can cancel the agreement, and collection can resume right away.
• New bills must be paid on time.
• Plans aren't guaranteed. Each treasurer decides, and plans are harder to get once a tax sale case is filed.

When a payment plan makes sense

A plan works best when the shortfall was temporary and your income can now cover the current taxes plus a monthly catch-up amount. If you can't afford the current bills, a plan usually just delays the problem.

Tax Relief for Elderly and Disabled Homeowners

Va. Code §58.1-3210 allows each city and county to adopt a real estate tax exemption or deferral for homeowners who are 65 or older or permanently and totally disabled. Each locality sets its own:

• Income limits
• Net worth limits (usually not counting the home itself)
• Whether the benefit is a full exemption, a partial exemption or a deferral

Every Hampton Roads city runs its own program, often through the Commissioner of the Revenue rather than the treasurer. Apply before taxes fall far behind. Relief generally applies going forward and usually doesn't erase past delinquent taxes.

Exemption vs. deferral

An exemption reduces or eliminates the tax. A deferral postpones it, and the deferred amount usually becomes due when the home is sold or the owner passes away. Deferrals can protect a senior who wants to stay put, but heirs may inherit a balance to pay later.

Exemptions for Disabled Veterans and Surviving Spouses

Virginia offers some of the strongest veteran property tax benefits in the country:

• 100% disabled veterans. Under Va. Code §58.1-3219.5, a veteran with a 100% service-connected, permanent and total disability rating, or who is rated individually unemployable, may be exempt from real estate tax on their primary residence. A surviving spouse may keep the exemption if they don't remarry and stay in the home.
• Surviving spouses of service members killed in action. Under Va. Code §58.1-3219.9, a qualifying surviving spouse may be exempt on their primary residence.

These are applied through your local Commissioner of the Revenue. They generally reduce future taxes and don't automatically wipe out delinquent taxes from before you qualified.

Other Options to Consider

• Ask about waivers if the delay was caused by an error at the locality.
• Refinance or use a home equity loan if you have equity and qualifying income.
• Get help from family to cover the balance before the account is sent to an attorney.
• Sell the property. If the house no longer fits your budget, a sale pays off the taxes and leaves you the equity. See how to avoid a property tax auction in Hampton Roads.

How to Choose the Right Path

If the problem was temporary

Ask for a payment plan and check relief eligibility.

If you're a senior or disabled and want to stay

Apply for local relief or deferral right away, and ask whether a plan can cover the past-due balance.

If you can't afford the house going forward

A plan just delays the outcome. Selling before the account goes to court usually protects the most equity. Our guide to Virginia property tax penalties and interest shows how fast the balance grows.