Arlington County, Virginia’s meals tax, added to restaurant bills and purchases of prepared foods, has been 4% since 1991, but under the county’s proposed Fiscal Year 2026 budget, the meals tax may be raised to 5%.
The County Board has also voted to advertise a proposed real estate tax increase of 1 cent, which would bring the tax on residential and commercial real estate to $1.043 per $100 in assessed value. If adopted as part of the new budget, it would increase residential real estate taxes by an average $398, based on the average home value of $854,900.
Any increase in the county’s property tax rate would be on top of higher assessments, established in January.
Arlington County property tax assessments, used to set tax rates, were increased an average of 2%. The increase in assessed values for residential properties is 3.7%
The proposed meals tax increase is already part of the new budget, that will be voted on in April. The property tax increase is not currently included in the budget. As an advertised real estate tax increase, it may or may not be included in the final budget proposal.
“This provides the Board with some flexibility during the budget process, as we monitor the impeding impacts of the current administration and Congress’ decisions that will disproportionally impact our regional economy,” Arlington County Board Chair Takis Karantonis said in a news release.
“The Board’s initial focus on reductions and efficiencies remains the highest priority for this year’s budget process.”
By law, the county cannot adopt a property tax increase that is larger than the advertised rate, but can adopt an increase that is smaller, or no increase at all.
The county’s FY 2026 proposed budget is $1.69 billion, a 2.1% increase over the current budget. It includes $13 million in budget reductions, and a 1.2% increase in funding for public schools.
A public hearing for the budget is scheduled for March 25. A public hearing for the tax rate is scheduled for March 27. The final vote on the new budget is scheduled for April 9. Arlington County’s new fiscal year starts July 1.
Here is a summary of Arlington County’s proposed FY 2026 budget, which does not include the advertised proposed property tax increase.
Get breaking news and daily headlines delivered to your email inbox by signing up here.
© 2025 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.
