Cost of Living in Fredericksburg
Fredericksburg's cost of living runs genuinely above both the national and Virginia averages -- a BestPlaces index of 105.6 -- with median household income running below the Virginia state median, a real combination worth understanding honestly rather than assuming a smaller Virginia city automatically means lower costs.
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Learn moreA cost-of-living index genuinely above both national and state averages
BestPlaces cites Fredericksburg's overall cost-of-living index at 105.6 (100 = U.S. average) -- 5.6% above the national average, though 1.3% below the Virginia state average. This is a real, above-national cost profile, distinct from Henrico's and Midlothian's below-national readings documented elsewhere in this dataset's current Virginia build.
Median household income runs below the state median
Fredericksburg's median household income was cited at $86,071 (2024) and $85,368 (2025) -- below the Virginia statewide average of $89,931. A separate ALICE-report citation described 31% of Fredericksburg households as "asset limited" (above the federal poverty line but struggling with basic expenses), the highest such share among jurisdictions in the broader Fredericksburg region cited this pass.
Virginia's near-flat income tax and Fredericksburg's genuinely lower sales tax
Virginia's graduated income tax brackets function as a near-flat 5.75% for most working filers, applying identically in Fredericksburg as statewide. Fredericksburg's own combined sales tax rate (5.3%) runs genuinely LOWER than the Richmond-region markets in this dataset (6.0% each for Henrico, Midlothian/Chesterfield, and Richmond city), since Fredericksburg's sales-tax region skips the 0.7% Central Virginia regional transportation add-on -- a real, structural savings on everyday purchases.
Housing cost as the likely primary driver
Fredericksburg's $449,755 median sale price (June 2026) and its rent figures -- which show a real, disclosed internal inconsistency across unit types -- are the most likely drivers of the above-national cost-of-living index, consistent with the pattern seen across most metros in this dataset where housing carries the largest weight in overall cost indices.
Key takeaways
- Fredericksburg's BestPlaces cost-of-living index (105.6) runs above the national average (5.6% higher), though slightly below the Virginia state average.
- Median household income ($85,368-$86,071 depending on year) runs below the Virginia statewide average ($89,931); 31% of local households are cited as 'asset limited' per one ALICE-report citation.
- Virginia's graduated income tax functions as a near-flat 5.75% for most working filers; Fredericksburg's combined sales tax (5.3%) is genuinely lower than the Richmond-region markets in this dataset (6.0%).
- Housing cost (a $449,755 median sale price) is the likely primary driver of the above-national cost-of-living index.
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