Loudoun County Adopts $5.4 Billion FY2027 Budget, Cuts Vehicle Tax Rate

The Loudoun County Board of Supervisors has approved a $5.4 billion budget for Fiscal Year 2027, funding county operations and the school system while keeping the real estate tax rate unchanged and lowering the tax rate on vehicles.

The adopted budget maintains the real property tax rate at $0.805 per $100 of assessed value for tax year 2026. However, county officials noted that the average homeowner’s tax bill is still expected to rise by about $141 due to increasing property values.

To offset that increase, the Board approved a reduction in the personal property tax rate on vehicles. The rate will be set at $3.09 per $100 of assessed value in 2026 and is scheduled to drop to $2.94 in 2027. For example, a vehicle assessed at $30,000 would see a tax bill reduction of approximately $352 next year.

The general personal property tax rate—applied to assets such as data center equipment—will remain unchanged at $4.15 per $100 of assessed value through 2027.

A major component of the budget is full funding for the Loudoun County School Board’s requested $105 million increase, bringing the total school operating budget to $2.1 billion.

County officials said the budget includes $30 million in base adjustments to sustain current services and $28.5 million dedicated to employee compensation. Pay increases include a 4.25% merit raise and 2% salary adjustment for general county employees, while Fire and Rescue personnel will receive an average 5.5% increase. Sheriff’s deputies are set to receive the largest boost, with an average pay increase of 8.75%.

The plan also adds 188 new positions across 18 departments, many tied to the opening of new county facilities in the coming years.

Affordable housing remains a priority, with $29 million allocated to the county’s Housing Fund. The funding includes revenue equivalent to one cent of the real property tax rate along with proceeds from the cigarette tax.

In addition to operating expenses, the Board approved a six-year Capital Improvement Program totaling $4.3 billion. Transportation projects make up the largest share at $1.8 billion, followed by county government projects at $1.3 billion and school projects at $1.2 billion.

New initiatives in the capital plan include a district park in the Dulles South area, additional passive parks, microtransit vehicles, expanded library space in eastern Loudoun, replacement of the Hamilton Fire Station, and upgrades to the Western Loudoun Sheriff’s Station.

The FY2027 budget takes effect July 1, 2026. Tax rates adopted for 2026 will apply to the spring tax collection beginning Jan. 1, 2026. The full budget document is expected to be published on the county’s website ahead of the new fiscal year.