Military Tax Obligations

Tax Obligations of Military Personnel Living in Fairfax County

Vehicles normally stored, parked or garaged overnight in Fairfax County, including Fort Belvoir, must be registered with Fairfax County.

There are two primary factors in determining exemption from the requirements to pay annual car taxes:

1. You have a legal permanent residence (domicile) elsewhere, and

2. The vehicle is registered in the active duty person’s name ONLY.

All military personnel and their family members living in Fairfax County, including Fort Belvoir, must register their vehicle within 60 days of bringing the vehicle into Fairfax County. If the owner is a legal resident of Fairfax County or the vehicle is registered with another person who is not on active duty, then the property tax immunity is lost, resulting in annual taxation. Similarly, leased vehicles are not "owned" by the military member and are subject to taxation.

The rules apply regardless of the state of vehicle registration because active duty military personnel may elect to register vehicles in accord with the Servicemembers Civil Relief Act of 2003 (previously the Soldiers' and Sailors' Civil Relief Act of 1940), either in their state of legal residence or the host state in which they are currently serving pursuant to military orders.

The personal property tax rate for tax year 2008 is $4.57 for each $100 of the value of the trade-in vehicle, as documented in the National Automobile Dealer Association Guide. If you are not exempt and registered your vehicle with the county between Jan. 1 and June 30, you will receive a personal property tax bill in the mail, payable by Oct. 5. If you registered your vehicle with the county after June 30, your bill is payable by Feb. 15.

A military person who retires and remains in Fairfax County must report the change of status within 60 days. You also will become liable to Fairfax County for county personal property tax at that time.

All active duty personnel who own real estate in Fairfax County must pay county real estate taxes. For tax year 2008, the real estate tax rate is $0.92 for each $100 of assessed value. Most homeowners’ real estate taxes are collected by their mortgage companies in their monthly mortgage payments, and are in turn forwarded to the county in two installments. The first installment is due July 28 and the second installment is due Dec. 5. If you pay real estate taxes directly to the county, your tax bill is mailed to you a month before it is due.

Income earned in Virginia, other than military pay, is taxable even though reported to the home state. This income should be reported on a Nonresident State Income Tax return. The Virginia State income tax is administered by the Virginia Department of Taxation, PO Box 760, Richmond, VA 23206.