As mentioned last week, the City of Harrisonburg and Rockingham County will not be increasing their real estate tax rates in 2025.

But...

1.  The real tax rate in the City of Harrisonburg has been steadily increasing for several years now.

2.  Home values (and thus real estate assessments) have been steadily increasing for several years now.

Thus, as several of you pointed out... monthly housing costs have effectively increased both as a result of changes in the tax rates and changes in assessed values.

The data shown on the graph above is calculated using the annual median sales price in the City of Harrisonburg and Rockingham County combined with the real estate tax rate in each corresponding year.

Real estate rates represent the amount of taxes paid on each $100 of assessed value.

Thus, for example, for the City of Harrisonburg in 2024... the median sales price was $295,000 and the real estate tax rate was $1.01.

So... $295,000 / 100 * 1.01 = $2,979.50 of annual taxes = $248 of monthly taxes.

A few observations based on the graph above...

1.  Five and six years ago the real estate tax bill was about the same in the City and County... but not so much any longer.

2.  It's currently about $66/month more expensive to pay real estate taxes on a median priced home in the City than in the County... though... interestingly... the median price is higher in the County ($347K) than in the City ($312K).

3.  The monthly real estate tax bill on a median priced home in the City has increased $106 over the past six years.

4.  The monthly real estate tax bill on a median priced home in the County has increased $40 over the past six years.

Does the difference in real estate tax rate between the City and County impact where you hope to buy your next home?