Fairfax County is officially seeking public input on a potential meals tax.
The Board of Supervisors voted today (March 18) to advertise a public hearing on amending the county code to impose a meals tax of up to 4%, starting as soon as next January. The board will also advertise a base real estate tax rate of $1.14 per $100, up from the current $1.125, as recommended by County Executive Bryan Hill.
Both resolutions passed 9-0 with the board’s lone Republican, Springfield District Supervisor Pat Herrity, recovering from health issues and not present for today’s meeting.
Board Chairman Jeff McKay said that, in both cases, the advertised rates are the ceiling on what could ultimately be approved. They’re set in stone and could come down, he stressed.
“We have a lot of time here,” McKay said, promising a “full and robust discussion” with the community before the expected budget adoption on May 13.
Public hearings on the budget and tax rates are slated to be held on April 22-23.
Meals Tax
State law permits counties to enact meals taxes up to 6% for restaurant service and prepared foods. The board’s March 18 action doesn’t set a rate, but allows one to be adopted up to 4%.
According to county staff, that rate would bring in an estimated $65.1 million for the six-month period between January and July 2026, after subtracting $2.8 million in implementation costs and a small-scale reimbursement to restaurants and retail outlets to defray compliance costs.
Revenue from a meals tax wasn’t included in Hill’s proposed budget for fiscal year 2026, which will start on July 1. But supervisors have indicated for months that they’re considering moving forward with enacting one after directing staff to review the possibility after last year’s budget discussions.
The average impact of a 3% meals tax for a middle-income Fairfax County family would be about $150 per year, county officials said at a recent committee meeting on the proposal.
Several county leaders have suggested that imposing the tax would allow the county to trim or eliminate a possible property tax rate increase, while others said it could be used to blunt the impact of cuts in Hill’s budget proposal.
At today’s board meeting, Hunter Mill District Walter Alcorn said he would’ve preferred consideration of a 5% maximum rate, with the extra funding going to affordable housing initiatives. He acknowledged, though, that the proposal didn’t gain traction with his colleagues.
If enacted, the meals tax would be added atop Virginia’s existing 6% sales tax. Sales tax revenue is split between the state and local governments, while meals tax revenue flows entirely to localities.
The county’s meals tax wouldn’t apply to the towns of Herndon, Vienna and Clifton, which already impose their own within their boundaries.
Fairfax County voters have twice rejected a meals tax referendum by significant margins, first in 1992 and again in 2016. Five years ago, the General Assembly removed the requirement for counties to hold a referendum to impose the tax.
Property Tax
Any increase in the real estate tax rate would be based on rising home-value assessments, which were released countywide last month.
Fairfax County homeowners saw their property assessments increase by an average of 6.7%, from $744,526 in 2024 to $794,235 in 2025. Add in the potential 1.5-cent rate increase, and the average tax bill would rise from $8,376 in 2024 to $9,054 in 2025. That’s an increase of just over 8%.
The board can approve a lower rate than the one that’s now being advertised, but not a higher one.
“This is the cap,” McKay said.
Average assessed residential property values were up relatively uniformly by magisterial district, with increases ranging from 5.64% in Mason District to 7.33% in Sully District.
Assessments also were up relatively consistently among property type:
- The average assessed valuation of single-family detached homes ($965,437) was up 6.4%
- The average valuation of townhouses and duplexes ($588,391) was up 6.5%
- The average valuation of condominiums ($374,961) was up 5.8%
Real estate taxes are billed in semiannual installments. Some homeowners pay the county government directly, while others have the bills paid through their mortgage servicer.
