Brace for Impact: Rising Tax Bills Ahead for Falls Church Homeowners

Attention, Falls Church homeowners! Get ready for some news that might make your wallet a bit lighter in 2025-26. Even if our city leaders manage to shave a few cents off the tax rate, you’re still likely staring down higher real estate tax bills.

Here’s the scoop: without any changes to the current rate, the average resident in our charming city can expect a jaw-dropping median tax increase of approximately $529. Yes, you read that right—thanks to a still-thriving housing market, those assessments are on the rise.

This eye-opening figure emerged from a recent briefing delivered to our City Council, who will be rolling up their sleeves next spring to draft the fiscal 2026 budget and decide on the tax rate. But hold your horses—this is just the tip of the iceberg, with updated home assessments not hitting the streets until late February.

Currently, the tax rate sits at $1.21 per $100 assessed valuation. The fiscal 2026 rate—whether it climbs, drops, or stays the same—will affect the semi-annual tax bills coming due in December 2025 and June 2026.

Now, if you’re the proud owner of a $1 million home—pretty typical for single-family residences in Falls Church—every penny trimmed off the tax rate would save you a cool $100. Even a slight two-cent cut, which is what the Council seems to be eyeing, won’t fully counteract the tax hikes linked to the soaring assessments.

Let’s rewind a little: Falls Church’s tax rate was set at $1.355 per $100 for three consecutive years up until 2021. Since then, our diligent Council members have managed to cut the rate in three of the following four years. New developments have been a lifeline in this effort, yet the burgeoning values of existing homes have still led to an increased tax burden for residents.

While we appreciate the fresh developments, Council member David Snyder aptly pointed out during a recent work session that “we’re already starting to see the costs that come with that growth.” It’s crucial for city leaders to maintain trust with our community by prioritizing the tax burden’s impact on residents.

During that same meeting, consensus emerged among Council members: they’re leaning towards keeping the real estate tax rate steady or perhaps making a minor reduction of one to two cents per $100. But here’s the kicker—even without a tax cut, city staff anticipate facing a $2 million budget gap that needs to be addressed before the budget is finalized.

A tax rate cut would demand even more ingenuity to balance the budget, as Virginia law mandates all localities operate on a balanced budget each fiscal year. Some of the projected cost increases stem from factors beyond their control, like rampant inflation and regional commitments. However, some of those costs are unique to Falls Church.

“We have challenges that come with growth, and we need to meet that,” emphasized City Manager Wyatt Shields, addressing the community’s concerns. Toss in increasing student enrollment and uncertainties surrounding state and federal funding, and it’s clear that city leaders are navigating uncharted waters.

“The unknowns are very intimidating,” echoed Council member Erin Flynn, summing up the sentiment.

Based on preliminary estimates, Falls Church is projected to rake in about $106 million in General Fund revenues for the upcoming fiscal year—an impressive 5.9% increase compared to the current year.

Positioned perfectly between Arlington and Fairfax County, Falls Church has leveraged its prime location. Our city’s total assessed real estate valuation is expected to hit a staggering $6.2 billion next year, demonstrating steady growth over the past decade. Remarkably, around $4 billion of that total stems from residential properties.

In contrast to neighbors grappling with commercial property challenges, like Arlington, Alexandria, and Fairfax County—who are dealing with vacant office spaces and plummeting valuations—Falls Church stands out. Mayor Letty Hardi has proudly stated that the city is “really fortunate” to be performing better than other jurisdictions.

The fiscal 2026 budget process is set to kick off on January 14, when Superintendent Peter Noonan presents his budget proposal. Shields will follow suit two months later, with both the School Board and City Council adopting their respective budgets on consecutive days in May. Mark your calendars—the new fiscal year starts July 1!

School Board Seeks Assistance in Superintendent Search: The Falls Church School Board is getting a helping hand as it embarks on the journey to find a new superintendent. Board members have approved the hiring of Hazard Young Attea (HYA) and Associates, an executive-search firm tasked with vetting candidates for the position currently held by Superintendent Peter Noonan. Noonan, who has dedicated himself to the district since 2017, announced in August his plans to step down at the conclusion of the 2024-25 school year.

Since its inception in 1987, HYA has assisted over 1,600 clients in selecting educational leaders, ensuring that our schools will continue to thrive.

Photo via Alexander Mills/Unsplash