Homeowners in Fairfax City could face an average 16.9% increase in real estate taxes under the proposed fiscal year 2026 budget released Feb. 25 by City Manager Bryan Foster.
In order to meet increasing costs — especially for schools — Foster proposes increasing the city’s real-estate tax rate from $1.03 per $100 of assessed value to $1.125.
Couple that with an average home-assessment increase of 7%, and the owner of a typical single-family home in the city valued at $798,300 would pay $8,981, up from $7,684 for the same home in 2024.
In a presentation to the city council, Foster said the $71.4 million in funding required by Fairfax County Public Schools, which operates educational facilities under contract with the city, is reaching a level that’s “not sustainable.” For the coming year, though, it will have to be endured.
“No one wants to see their taxes go up, but we need to have the funding sources available in order to balance the budget,” Foster said.
The average cost for each of the slightly more than 3,000 city students enrolled in FCPS would rise from $21,465 currently to $23,236 in the fiscal year that starts on July 1.
Foster’s budget proposal calls for increases to a number of other taxes and fees:
- The meals tax would rise from the current 4% to 6% — the maximum rate allowed by Virginia. If approved, it would be the city’s first meals tax increase in 21 years.
- The stormwater utility tax would rise 6%, representing an average increase of $10 per year for homeowners
- The wastewater fee would rise 6%, an average increase of $42
Miscellaneous other increases, from higher ambulance fees to an uptick in the cost of senior-center memberships, are also proposed.
The city manager said the proposed $1.125 real estate tax rate is “not out of line” and remains on the lower end of the rates imposed by other Northern Virginia jurisdictions. Current tax rates range from 86.5 cents per $100 of assessed value in Loudoun County to $1.47 in Herndon.
With Foster’s proposed increase, Fairfax City would match Fairfax County’s current real estate tax rate. However, County Executive Bryan Hill has suggested an increase of 1.5 cents for FY 2026, which would bring the county’s rate up to $1.14 per $100 of value.
“The city is still in good shape if you look at our economic health,” despite concerns about the local and national economy, Foster said.
The proposed 9.5-cent increase in the tax rate is massive compared to what some other local jurisdictions are proposing this year. But increased costs in the school contracts alone would have necessitated an increase of 13.5 cents if the city didn’t take steps to find efficiencies elsewhere in the budget, Foster told council members.
The proposed general-fund budget of just over $207 million is up 14.5% from the adopted fiscal year 2025 budget, with 37% of overall funding supporting education. General government operations will require 10% of funding, police and fire 9% each, social services 6%, culture/recreation 4% and debt service/capital leases 6%.
Counting all other ancillary funds, the city budget as a whole would total $306.5 million, up 16.1%. Totals for the current budget year are $180.7 million for the general fund and $263.9 million overall.
The draft FY 2026 budget calls for a 3.5% merit increase for general employees, which would take effect in January, and annual “step” increases for public safety personnel. An ongoing study of how pay levels compare to those elsewhere will focus on property yard personnel in the coming year, according to Foster.
The budget would enable all current services to continue at existing levels, but provide for no new initiatives or service increases, Foster said.
It is the first budget season in the city for Foster, who was tapped as acting city manager in January. He previously served as deputy city manager in Manassas.
Foster’s presentation kicked off a budget process that will include public hearings on March 11 and March 25. The city council will take action on the budget, tax rate and FY 2026-2030 capital improvement program on May 6.
“There will be multiple opportunities in many meetings and work sessions from now until May for people to ask questions,” Mayor Catherine Read said of the upcoming budget process.
The Feb. 25 budget presentation was “just the manager’s opportunity to lay it out for us — what it is, what it looks like, what it does,” she noted.
