Taxes & Insurance in Lexington
Lexington carries Virginia's statewide sales-tax floor (5.3%), Virginia's near-flat 5.75% effective income tax, and a genuinely severe, documented river-flood hazard with direct insurance implications for riverside properties.
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Learn moreSales tax: the statewide floor
Lexington/Rockbridge County's combined 2026 sales tax rate is 5.3% (4.3% state + 1.0% local) -- no regional add-on applies.
Virginia's graduated income tax, restated at the local level
Virginia taxes income at 2% on the first $3,000, 3% on $3,001-$5,000, 5% on $5,001-$17,000, and 5.75% above $17,000 -- a near-flat 5.75% for most working filers statewide. Social Security is fully exempt at any age; the age-65 deduction (up to $12,000) phases out above $50,000 (single) / $75,000 (joint) federal AGI.
Property tax: a disclosed gap at the Lexington-city-specific level
Virginia's statewide average effective property tax rate is 0.78% (Tax Foundation, 2026) -- a Lexington-city-specific rate was not independently confirmed this pass, disclosed as a gap.
A genuinely severe, documented river-flood hazard with direct insurance implications
The Maury River crested 31 feet in Lexington's residential area during the 1969 Camille flood, washing out the C&O railroad trestle at East Lexington -- the most severe Camille impact of any market in this six-market batch. Confirm current FEMA flood-zone status and flood-insurance coverage directly for any river-adjacent address; standard homeowners policies exclude flood coverage.
Key takeaways
- Combined sales tax is 5.3% -- Virginia's statewide floor.
- Virginia's graduated income tax functions as a near-flat 5.75% for most working filers; Social Security is fully exempt.
- A Lexington-city-specific property tax rate was not independently confirmed this pass -- only the 0.78% statewide average is cited as context.
- A genuinely severe, documented 1969 flood-of-record hazard (31-ft Maury River crest) makes flood-insurance confirmation essential for river-adjacent addresses.
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