The gap between Alexandria’s residential and commercial tax bases continues to grow, with residents shouldering more of the city’s tax burden, according to the city’s released real estate tax assessments.
As of Jan. 1, Alexandria’s overall tax base increased by 3.4% in value, or nearly $1.7 billion, to reach $51.4 billion in 2026. The city’s residential tax base increased by 4.4% in value, or $1.4 billion, while the commercial tax base gained $334.8 million in value, up 1.9%, and the non-locally assessed tax base declined by $20.5 million, dropping 2.8%.
That means property owners can expect to see values increase as the city government’s reliance on residential property taxes has gone up from 82.49% to 82.6%.
“But, not all residential properties are changing at the same rate,” Annwyn Milnes, a city appraisal supervisor, told City Council this week. “So, 63% of our properties saw an increase this year, 8% saw a decrease, and 29% of the values remained unchanged.”
The driver of the market change was $955 million in residential market appreciation, as well as $456.4 million in taxable new construction — $302.29 million for residential development, $61.58 for multifamily rentals and $92.49 million in commercial growth. Last calendar year, $363.9 million of growth was added to the city’s tax base.
“I think it is really important that we take time on every project that is contributing to that growth, because it is a major piece of what is holding together our future budget,” said Mayor Alyia Gaskins.
While the commercial tax base is minuscule when compared to residential, it’s an improvement over last year, which saw commercial property assessments decline by $156.4 million (0.88%). Overall, Alexandria’s office buildings increased by 1.91% in value, from $17.54 billion in 2025 to $17.87 billion in 2026.
The growth in property values may also mean rent increases in some of the city’s 365 apartment complexes.
“Property owners of the [multifamily] apartments do pass down the tax burden to their renters,” Milnes said. “They they have a big tax bill, and so you’re going to see when the tax bills go up, sometimes the rents go up, and sometimes conversely, the capitalization rates might go up too along with that.”
There are 25 hotels with 4,511 rooms in the city, and even though overall hotel values increased by 14.2% to $697.2 million this year, they still have not surpassed the pre-pandemic hotel values of $881 million in 2019.
The decline in the non-locally assessed tax base fell 2.8% due to “certain railroad parcels being transferred from Norfolk Southern to the tax exempt Virginia Passenger Rail Authority,” according to the city.
According to the city:
- Locally assessed real property assessments increased 3.51% (which consists of both new construction and appreciation), or $1.7 billion, from $49.0 billion in 2025 to $50.7 billion in 2026
- The residential property tax base increased 4.40%, or $1.4 billion, from $31.5 billion in 2025 to $32.9 billion in 2026
- The office property tax base increased 0.59%, or $15,822,490, from $2.702 billion in CY 2025 to $2.718 billion in CY 2026
- Residential property values increased 3.81%, from $729,925 in CY 2025 to $757,706 in CY (calendar year) 2026
- Residential single family home values increased 4.44%, from $1,001,336 in CY 2025 to $1,045,750 in CY 2026.
- Multifamily rental assessed values increased overall 0.94%, or $89.99 million, from $9.56 to $9.65 billion
- Residential condominium values increased 2.81%, from $447,612 in CY 2025 to $460,185 in CY 2026.
- Commercial property values increased by 1.91%, or $334.8 million, from $17.54 billion in 2025 to $17.87 billion in 2026
- Tax-exempt real property values increased 3.58%, or $213.8 million, from $6.0 billion in 2025 to $6.2 billion in 2026
- The median sale price of residential properties increased from $682,500 to $694,750.
Multiple vacant buildings are being converted into multi-family rental buildings or residential condominiums. The following offices “were classified as conversion projects for the first time in 2025,” according to the city:
- 1900 N. Beauregard Street — Planned for 345 units
- 2051 Jamieson Avenue — Planned for 187 units
- 601 Wythe Street — Planned for 18 condominium units
- 333 N. Fairfax Street — Planned for 32 townhouses
- 2525 Mount Vernon Avenue — Planned for mixed use with retail and 30 short-term rentals
Office conversions have also been proposed for 732 N. Washington Street (20 units) and 415 N. Alfred Street (five townhomes) in Old Town.
Assessments were mailed out on Feb. 25. Property owners have until March 16 to dispute their assessment with the city’s Office of Real Estate Assessments. Tax relief applications for senior residents and people with disabilities are also due by April 15.
