\n<\/p>\n
Property tax is a yearly fee homeowners pay based on the assessed value of their property. Like other taxes, the amount you pay can vary depending on where you live and how much your home is worth.<\/span><\/p>\n Virginia\u2019s effective property tax rate on owner-occupied housing value is typically <\/span>0.78%<\/span><\/a>. Your taxes are prorated to the day of sale when you sell your home, meaning you\u2019ll only pay taxes for the days of the fiscal year that you owned your home.\u00a0<\/span><\/p>\n The Virginia <\/span>Department of Taxation<\/span><\/a> can provide more information about taxes specific to your city or town here.<\/span><\/p>\n In some states, if you inherit a home, you may owe taxes. Virginia, however, is not one of these states. However, you will be responsible for any property taxes owed on the home. It\u2019s also possible that a lien might exist on the property if the previous owner was not up to date on their taxes, which you would be responsible for.\u00a0<\/span><\/p>\n If you decide to <\/span>sell the inherited home<\/span><\/a>, the concept of a \u201cstepped-up basis\u201d comes into play. The stepped-up basis means the home\u2019s cost basis for tax purposes is set at its <\/span>fair market value<\/span><\/a> on the date you inherited it, not what the original owner paid. This can significantly reduce capital gains tax if you sell the home soon after inheriting it. Capital gains tax is only applied to the portion of the profit above that stepped-up value.<\/span><\/p>\n \u00bbLearn more: <\/i><\/b>Want to know exactly how much you\u2019ll walk away with from your home sale? Use our Virginia closing cost calculator to get a personalized estimate of your selling expenses and see your potential proceeds after closing.<\/span><\/i><\/p>\nInheritance tax<\/h2>\n