Virginia: Arlington Proposes Two-Cent Tax Rate Increase Following 1.5% Decrease to Commercial Tax Base for 2026

On January 16, 2026, Arlington County in Virginia released the calendar year 2026 proposed real property assessments to both commercial and residential property owners. The proposed 2026 values represent a 1.1% increase year over year for all properties (residential and commercial), which is a lower growth rate compared to 2.0% in 2025 and 2.5% in 2024.

Unlike previous tax years, only the residential properties in Arlington experienced growth year over year, at 3.2% overall. On the flip side, the total commercial tax base (including offices, hotels, apartments, general commercial, and new construction) decreased 1.5% from 2025. Existing office property values experienced the sharpest decline in assessed value for the third year in a row, decreasing 19%. The decrease is an attempt to reflect both the ongoing struggles for the area’s office market and recent sales that transacted at prices much lower than the assessments on average. General commercial property values (nonoffice commercial properties) collectively increased by 3.7%. The apartment sector values increased approximately 6.2% (the largest of any commercial property type). Benefitting from continued demand for new construction, hotel/motel values declined 3.8% in 2026, following a 22% increase in value for tax year 2025. This decrease was driven by the post-pandemic rebound for hotel demand. The county’s overall real estate tax base is now split between residential (57%) and commercial (43%) values for 2026.

As the tax base has shifted away from commercial values, which historically have been the county’s most lucrative stream of property tax revenue, the jurisdiction will need to recoup this shortfall when proposing its fiscal year 2027 budget. Despite the county manager originally proposing a 1.5-cent increase to the real estate tax rate, the Arlington County Board elected to advertise a 2-cent real estate tax rate increase instead. If adopted, the real estate tax rate would increase to $1.053 per $100 of assessed value, making an assessment review and appeal even more important. The tax rate will be finalized at the County Board’s meeting in April and by law cannot be set higher than the advertised rate of 1.053%.

Notice of 2026 assessments were mailed to Arlington property owners on January 16. The subject matter experts at Ryan are exploring creative strategies to assist our clients and minimize tax liability. We urge you to reach out to our local team members as soon as possible to prepare for the appeal deadline of April 15.

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.