Vehicle Taxes & Fees

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703-222-8234 TTY 711
12000 Government Center Parkway, Suite 223
Fairfax, VA 22035
Young Tarry
Division Director

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Vehicle Tax Subsidy

Personal Property Tax Relief Act of 1998 (PPTRA)

By state law, Virginia offers tax relief for vehicle taxes. The state will subsidize the taxes owed on the first $20,000 of a vehicle’s assessed value.

This state tax relief is only available for personal vehicles. Business vehicles are not included in the state tax relief. If eligible for this state tax relief, your car tax bill will indicate the amount of relief you may receive. (If your vehicle's assessed value is $1,000 or less, you will not be required to pay vehicle taxes. However, the annual vehicle registration fee will still apply.)

To receive this state tax relief, you must certify every year that your vehicle qualifies. 

Qualifications for PPTRA tax subsidy

To qualify for the vehicle tax subsidy a vehicle:

  • Must be owned or leased by an individual
  • Must NOT be used for business purposes
  • Must be registered with a gross weight of less than 10,001 pounds
  • Note: pickups and panel trucks with a gross weight between 7,501 to 10,000 pounds must register with the Virginia DMV as a "pickup." Please note, DMV will continue to use the registration designation of "truck" for business use vehicles. Vehicles with this designation will not qualify for the state vehicle tax subsidy.

If you can answer YES to any of the following questions, your motor vehicle is considered by State Law to have a business use and does not qualify for the vehicle tax subsidy.

  • Is the vehicle owned or co-owned by a business?
  • Is more than 50% of the mileage for the year claimed as a business expense for Federal Income Tax purposes OR reimbursed by an employer?
  • Is more than 50% of the depreciation associated with the vehicle deducted as a business expense for Federal Income Tax purposes?
  • Is the cost of the vehicle expensed pursuant to Section 179 of the Internal Revenue Service Code?
  • Is the vehicle leased by an individual, and the leasing company pays the tax without reimbursement from the individual?

How the PPTRA rate factors into the calculation of an individual's tax due

In general, vehicle taxes are calculated by multiplying the value by the appropriate tax rate. Personal use vehicles are also eligible for a vehicle tax subsidy provided by the Commonwealth of Virginia. Business vehicles are not eligible for the vehicle tax subsidy.

For Tax Year 2023 ONLY, all vehicle values have been reduced by 10% from value listed in the January edition of the J.D. Power Associates Valuation Services Used Car Guide. The reduction will occur automatically. The already-reduced value will be shown on the bill.

Example for a Personal Use Vehicle Valued at $20,000 or less in Tax Year 2023

Full vehicle value per value guide   $10,000
Less 10% value reduction $10,000 x 0.10
= $1,000		 -$1,000
Reduced Value reflected on bill for Tax Year 2023 ONLY $10,000 - $1,000
= $9,000		 $9,000

 

Apply the tax rate ($4.57 per $100 value) to get total annual tax for the vehicle $9,000 x ($4.57 / 100)
= $411.30		 $411.30
Calculate the personal property tax relief amount (51% in 2023) $411.30 x 0.51 
= $209.76		 -$209.76
Reduce the total annual tax by the relief amount $411.30 - $209.76
= $201.54		 $201.54
Annual tax amount to be paid by vehicle owner   $201.54

 

For Tax Year 2023 ONLY, all vehicle values have been reduced by 10% from value listed in the January edition of the J.D. Power Associates Valuation Services Used Car Guide. The reduction will occur automatically. The already-reduced value will be shown on the bill.

Example for a Personal Use Vehicle Valued at $20,000 or more in Tax Year 2023

Full vehicle value per value guide   $30,000
Less 10% value reduction $30,000 x 0.10
= $3,000		 -$3,000
Reduced Value reflected on bill for Tax Year 2023 ONLY $30,000 - $3,000
= $27,000		 $27,000

 

Apply the tax rate ($4.57 per $100 value) to get total annual tax for the vehicle $27,000 x ($4.57 / 100)
= $1,233.90		 $1,233.90
Calculate the personal property tax relief amount (51% in 2023) for the first $20,000 of value $20,000 x ($4.57 / 100) x 0.51
= $466.14		 -$466.14
Reduce the total annual tax by the relief amount $1,233.90 - $466.14
= $767.76		 $767.76
Annual tax amount to be paid by vehicle owner   $767.76

For Tax Year 2023 ONLY, all vehicle values have been reduced by 10% from value listed in the January edition of the J.D. Power Associates Valuation Services Used Car Guide. The reduction will occur automatically. The already-reduced value will be shown on the bill.

Example for a Business Use Vehicle (regardless of value) in Tax Year 2023

Full vehicle value per value guide   $30,000
Less 10% value reduction $30,000 x 0.10
= $3,000		 -$3,000
Reduced Value reflected on bill for Tax Year 2023 ONLY $30,000 - $3,000
= $27,000		 $27,000

 

Apply the tax rate ($4.57 per $100 value) to get total annual tax for the vehicle $27,000 x ($4.57 / 100)
= $1,233.90		 $1,233.90
Annual tax amount to be paid by vehicle owner   $1,233.90

History of PPTRA

In FY 1999, the first year of implementation, taxpayers were billed for the entire amount of tax levy and received a refund of 12.5% of the tax on the first $20,000 of the value of their personal vehicle from the Commonwealth of Virginia.

From FY 2000 to FY 2002, the PPTRA reduced the Personal Property Taxes paid by citizens by 27.5%, 47.5%, and 70%, respectively, with an offsetting reimbursement paid to the County by the Commonwealth. Under the original approved plan, taxes paid by individuals were to be reduced by 100% in FY 2003. However, due to the Commonwealth’s lower than anticipated General Fund revenue growth, the reimbursement rate remained at 70% in FY 2003 through FY 2006. 

The 2004 General Assembly approved legislation that capped statewide Personal Property Tax reimbursements at $950 million in FY 2007 and beyond. Fairfax County’s allocation has been set at $211.3 million based on the County’s share of statewide tax year 2004 collections. Each year County staff must determine the reimbursement percentage based on the County’s fixed reimbursement from the state and an estimate of the number and value of vehicles that will be eligible for tax relief.

PPTRA Reimbursement Rates by Year
Fiscal Year Tax Year % Reimbursement
FY 2024 2023 51.0%
FY 2023 2022 49.5%
FY 2022 2021 57.5%
FY 2021 2020 58.5%
FY 2020 2019 59.0%
FY 2019 2018 60.0%
FY 2018 2017 60.5%
FY 2017 2016 62.0%
FY 2016 2015 62.0%
FY 2015 2014 62.0%
FY 2014 2013 63.0%
FY 2013 2012 63.0%
FY 2012 2011 68.0%
FY 2011 2010 70.0%
FY 2010 2009 70.0%
FY 2009 2008 68.5%
FY 2008 2007 67.0%
FY 2007 2006 66.7%
FY 2006 2005 70.0%
FY 2005 2004 70.0%
FY 2004 2003 70.0%
FY 2003 2002 70.0%
FY 2002 2001 70.0%
FY 2001 2000 47.5%
FY 2000 1999 27.5%
FY 1999 1998 12.5%
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