Roll-Back Taxes on Land in Williamsburg, VA: What to Know

What Are Roll-Back Taxes When You Buy or Sell Land in Williamsburg, VA?

Roll-back taxes are deferred real estate taxes that come due when land taxed at its lower use value under Virginia's land use program changes to a nonqualifying use, or is rezoned to a more intensive use at the owner's request. In James City County, York County, and most Virginia localities, the bill covers the tax savings from the five most recent complete tax years, plus interest. Starting January 1, 2027, Virginia's Residential Property Disclosure Statement adds a roll-back tax item, and a settlement agent who knows a property is in the program must give the buyer a written notice before closing.

By Jackie Berberabe | October 14, 2026

If you're shopping for a few acres outside Williamsburg, a wooded lot to build on, or a small farm in upper James City County or York County, there's a tax question you want answered before you write an offer. Is this land in the land use program? And if it is, what happens to the tax bill when you change how the land is used?

The Historic Triangle is seeing a wave of new construction, much of it on land that used to be farmed or timbered, and Virginia is about to put roll-back taxes front and center in every residential sale.

How Virginia's Land Use Program Creates a Roll-Back Tax

Virginia lets localities tax certain land on what it's worth for its current use, not its full market value. The program is set out in the Code of Virginia starting at § 58.1-3230, and it covers four types of real estate: agricultural, horticultural, forest, and open space.

The state sets the baseline acreage in § 58.1-3233. Agricultural and horticultural land generally needs at least 5 acres, forest land at least 20 acres, and open space at least 5 acres, though localities can adjust some of these by ordinance.

Here's how our local programs look as of the date of writing:

• James City County offers special valuation for tracts larger than 5 acres in agricultural or horticultural use, and for timberland of 20 acres or more located in an Agricultural/Forestal District. Owners file a Land Use Assessment Application with the Commissioner of the Revenue every year, before November 1, for the following tax year.
• York County runs a land use program with two qualifying uses, agricultural and horticultural.
• City of Williamsburg property owners should confirm directly with the City's assessor whether any special use assessment applies to a parcel.

What triggers the roll-back tax

The owner pays tax on the lower use value, but that savings is really a deferral. Under § 58.1-3237, roll-back taxes come due when either of these happens:

1. The use changes to something that no longer qualifies, like clearing a pasture to build homes or letting a qualifying farm operation stop.
2. The zoning changes to a more intensive use at the owner's request, unless the locality has adopted an ordinance that delays the tax until the use itself changes.

Only the portion of the land that no longer qualifies gets hit.

How much it can cost

In localities that haven't adopted a sliding scale ordinance, the roll-back tax equals the deferred tax for each of the five most recent complete tax years, plus simple interest at a rate the locality sets, capped at its delinquent tax rate. The current year's tax is also recalculated at fair market value.

Here's a simplified example. Say a 12-acre parcel in James City County is assessed at $400,000 fair market value and $40,000 use value. Using a flat $0.80 per $100 of assessed value for easy math:

• Tax at fair market value: $3,200 per year
• Tax at use value: $320 per year
• Deferred tax: $2,880 per year
• Five years: about $14,400, before interest and the current-year adjustment

Real numbers change with each year's assessment and tax rate (James City County's rate was $0.83 per $100 before July 1, 2026), so get the actual figure from the county. For more on how local rates work, see my breakdown of Williamsburg area property taxes.

Buying land in the program doesn't automatically trigger it

This is the part most people miss. Under § 58.1-3237(D), roll-back liability does not attach just because the land changes hands. If you buy qualifying land, keep it in the qualifying use, and don't rezone it to a more intensive use, the special assessment can continue. In James City County, you'd still need to file the land use application in your name to keep it.

The tax comes due when you change the use. That's why this matters so much to a buyer who plans to build a home, subdivide, or stop farming.

What Changes on January 1, 2027

Two identical 2026 laws (Acts of Assembly chapters 308 and 309) take effect January 1, 2027. They don't change how roll-back taxes are calculated. They change how buyers find out about them.

A new item on the disclosure statement

Virginia is a buyer beware state, and the Residential Property Disclosure Statement points buyers toward their own due diligence. I covered the full form in my post on what sellers have to disclose in Williamsburg.

I compared the two versions of § 55.1-703 in the Code of Virginia. The version in effect through December 31, 2026 lists 19 items. The version effective January 1, 2027 adds a 20th item: the owner makes no representations about whether the property is in a locality with a land use plan, and it warns that a change in use or zoning can trigger roll-back taxes and interest under § 58.1-3237.

The seller still isn't telling you whether the land is in the program. The form tells you to go find out.

A new notice from the settlement agent

Under new § 55.1-1008.1, when a settlement agent knows the property being sold is taxed under a use value assessment, the settlement agent must:

• Give you a written notice, created by the Virginia Department of Taxation, before settlement
• Get your written acknowledgment that you received it, at or before settlement
• Keep that acknowledgment for at least five years

A settlement agent who willfully fails to comply faces a civil penalty of no more than $250. A missed notice also doesn't help you. It doesn't affect the validity of the assessment, it doesn't relieve you of any roll-back tax, penalty, or interest, and it doesn't create a private cause of action against the locality or the settlement agent.

The notice is helpful, but it arrives near the end of the transaction. If you first learn about a roll-back tax at settlement, your best chance to negotiate has passed.

How to Protect Yourself Before You Buy or Sell Land

Whether you're buying acreage or selling it, know the number before the contract is signed.

If you're buying

• Check the assessment record. County property records usually show both a fair market value and a use value when land is in the program. James City County and York County both have online property search tools.
• Call the right office. In James City County, that's the Commissioner of the Revenue at 757-253-6695. In York County, it's the Real Estate Assessment Office at 757-890-3720.
• Match the tax to your plans. Building a home, dividing the parcel, or letting the farm use lapse can each trigger the tax. Keeping the land in qualifying use may not.
• Think about the rest of the property, too. Rural parcels often come with private wells and septic systems. My guide to septic inspections in Williamsburg explains who typically handles that evaluation.
• Put it in writing. Who bears a roll-back tax between buyer and seller is negotiable, and your real estate attorney can draft contract language that fits your situation.

If you're selling

If a builder wants your land, a rezoning or change in use is likely part of the plan. Know your potential roll-back amount before you negotiate price, and decide up front how the contract will handle it.

This is exactly the kind of detail I walk clients through before we ever list or make an offer. Every parcel is different.

Frequently Asked Questions

Does buying land in the land use program automatically trigger roll-back taxes in Virginia?

No. Under Virginia Code § 58.1-3237(D), roll-back liability does not attach just because ownership changes, as long as the new owner keeps the land in its qualifying use and does not rezone it to a more intensive use. In James City County, the new owner still needs to file the annual Land Use Assessment Application to keep the special assessment.

Who pays roll-back taxes when land is sold in Williamsburg, VA?

Virginia law assesses roll-back taxes against the owner when the change in use or owner-requested rezoning occurs. If the buyer changes the use after closing, the buyer is typically responsible, and the purchase contract can shift who bears the cost.

How do I find out if a property near Williamsburg is in the land use program?

Check the county assessment record for both a fair market value and a use value, or call the James City County Commissioner of the Revenue at 757-253-6695 or the York County Real Estate Assessment Office at 757-890-3720. For property in the City of Williamsburg, contact the City's assessor.

What changes for Virginia home sales on January 1, 2027?

The Residential Property Disclosure Statement adds a 20th item warning that land under a use value assessment may be subject to roll-back taxes if its use or zoning changes. Settlement agents who know a property is in the program must also give the buyer a written notice before settlement.

If the settlement agent never gives me the roll-back notice, do I still owe the tax?

Yes. Virginia Code § 55.1-1008.1(C) says a missing notice does not affect the assessment or relieve the purchaser of any roll-back tax, penalty, or interest. That's why it pays to check the property's tax status before you sign a contract.

Planning Your Next Move in the Williamsburg Area

Roll-back taxes aren't a reason to walk away from land. They're a number to know and plan for before anyone signs anything.

Planning a move to the Williamsburg area? I put together the Williamsburg Military Relocation Guide, loaded with local insights, tips, and the details that make a PCS or relocation go smoothly. Grab your copy here: Williamsburg Military Relocation Guide. And if you're thinking about buying acreage or selling land in James City County or York County, I'm happy to talk it through. Call or text me at 757-870-1902.

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One note before you act on this. This post explains how Virginia law generally works. It isn't legal advice, and it can't account for the facts of your transaction. Statutes and deadlines change, contract terms vary, and outcomes often turn on details specific to your deal. Before you act on anything here, especially anything involving terminating a contract, an earnest money deposit, a refund, or a possible claim, talk with a Virginia real estate attorney. I'm glad to refer you to one.

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About Jackie Berberabe

Jackie Berberabe is a licensed real estate agent in the Commonwealth of Virginia and a Military Relocation Professional with Real Broker LLC, serving Greater Williamsburg, including James City County and York County. With more than 20 years of experience, she helps military families, relocating buyers, and local sellers move through every step from preparation to closing, with deep knowledge of VA loans and the local market. Reach Jackie at 757-870-1902 or jackie@goodtobeehome.com. Real Broker LLC, 855-450-0442.