Richmond Moves to Cut Meals and Property Taxes

City Hall begins steps to lower the meals tax and real estate tax rate as voters approve a new school sales tax.

Updated on Nov. 10, 2026 in Remote Work

Richmond Moves to Cut Meals and Property Taxes

Live Poll

Do you support Richmond cutting the meals and property tax rates?

Richmond City Hall has begun the process to reduce the city meals tax and real estate tax rate. Voters separately approved a 1% schools-focused sales tax increase with nearly 68% of the vote.

Why it matters

The city faces a roughly $17 million budget deficit heading into 2027, and the proposed tax cuts would widen that shortfall. Officials are weighing the trade-offs between tax relief and the cost of city services.

The meals tax would drop from 7.5% to 6.5%, and the real estate rate from $1.20 to $1.19 per $100, while a 1% sales tax is expected to raise about $47 million annually for school facilities. The effect of the proposed cuts on the roughly $17 million deficit remains unresolved.

The players

Richmond City Hall

The municipal government of Richmond, Virginia, which is drafting the tax reductions and budget proposals.

Jordan and Breton

Richmond City Council members who have begun drafting legislation to reduce the meals tax.

The details

Council members Jordan and Breton have begun drafting legislation to reduce the meals tax by 1%. Department heads were advised to look into budget reductions of up to 10% for the next fiscal year, and City Hall will begin a hiring freeze on Nov. 16.

February: Council passed a resolution requesting side-by-side budgets with alternative tax rates.
2018: The city meals tax was increased from 6% to 7.5%.
Nov. 16: City Hall hiring freeze begins.
March: The mayor plans to introduce a budget with a one-cent real estate tax cut.
July 2027: The increased sales tax could take effect.

Market Landscape

The proposed meals tax cut partially reverses the city's 2018 increase from 6% to 7.5%. Its effect on city finances will depend on how the roughly $17 million deficit is closed.

A lower meals tax would reduce the cost of eating out in Richmond, but any real estate tax cut depends on whether the city can absorb a larger deficit. Department budget cuts and a hiring freeze could affect city services residents rely on.

The takeaway

Richmond's proposed tax cuts face a tight budget, and residents should watch the March budget proposal to see whether relief for diners and property owners comes at the cost of city services.

What happens next

The increased sales tax could take effect as soon as July 2027, and the mayor plans to introduce a budget with a one-cent real estate tax cut in March.