What are rollback taxes when buying land in Virginia?

Rollback taxes are the property taxes a Virginia locality deferred while land was enrolled in its land use (use-value) program, which come due when the land stops qualifying. Buying enrolled land doesn’t trigger them by itself. Under Va. Code § 58.1-3237, they’re owed when the use changes to one that doesn’t qualify, or when the owner asks to rezone the land to a more intensive use. In most counties the bill covers the deferred tax for the five most recent complete tax years plus simple interest, and the current year’s tax gets recalculated at full market value. Whoever owns the land when the use changes gets the bill.

That last point matters for buyers. If you buy 30 acres of enrolled pasture and build a house, split off lots or stop farming, the rollback is yours, even for years before you owned it.

This is general information, not legal or tax advice. Confirm the details for a specific parcel with the local assessor or commissioner of the revenue, and with your settlement attorney.

What is land use taxation in Virginia?

Virginia lets counties and cities adopt a land use program under Va. Code § 58.1-3230 and following sections. Qualifying land is taxed on its value as farmland, forest or open space instead of its full market value. Each locality decides whether to offer it, and many counties around Richmond, Charlottesville and Lynchburg do.

The state sets minimum acreage in § 58.1-3233:

Category	State minimum
Agriculture or horticulture	5 acres (a locality can allow less for some uses, such as aquaculture or specialty crops)
Forest	20 acres
Open space	5 acres, or more if the local ordinance requires it, with smaller minimums allowed in limited cases

Contiguous land in the same ownership counts together. Hanover County’s Land Use page says plainly that “the tax reduction is a deferral not a discount.”

What triggers rollback taxes?

Event	Triggers rollback?
You buy enrolled land and keep it in the same qualifying use	No, per § 58.1-3237(D)
You change the land to a use that doesn’t qualify (for example, stop farming or clear forest for development)	Yes, on the portion that no longer qualifies
You ask the county to rezone it to a more intensive use	Yes, at the time of rezoning, unless a local ordinance says otherwise
You sell off part of the land and what’s left falls below the minimum acreage	Can, because the remaining land no longer qualifies
You build a new house on part of it	Usually yes, on the homesite

Goochland County’s Land Use page lists examples of a change in use: rezoning, selling land and leaving too little acreage to qualify, ending production, a new dwelling, and a name change on a contiguous parcel. Albemarle County’s use-value page says rollback is assessed on at least a two-acre homesite when a permit is taken out to build a new home.

The owner has to report the change within 60 days, and the rollback bill is due to the treasurer within 30 days of assessment, per § 58.1-3237(D). Goochland says the 60-day report is how you avoid a penalty.

How much are rollback taxes?

Rollback taxes equal the difference between the tax actually paid at use value and the tax that would have been paid at market value, for each of the five most recent complete tax years, plus simple interest. The current year is also extended at full market value. Localities with a “sliding scale” ordinance calculate it from the start of a written agreement instead.

Albemarle gives a rule of thumb: rollback “roughly equals 6.5 to 8 times the annual taxes for the portion being rolled back.”

Here’s a hypothetical to show the math (made-up numbers, not any real parcel):

Item	Per year
Market-value assessment of the affected acreage	$400,000
Use-value assessment	$60,000
Difference	$340,000
Tax rate (hypothetical)	$0.80 per $100
Deferred tax per year	$2,720
Five years of deferred tax	$13,600, plus interest and the current-year adjustment

How do local programs differ?

The state law sets the frame, and each county runs its own program. Three examples from our service area, as published on Nov. 9, 2026:

County	What its official page says
Hanover	Land must be zoned A-1; ag or horticulture land must be in production for 5 years before entering; applications accepted Jan. 1–Feb. 1 and Sept. 1–Nov. 1; $10 fee
Goochland	Applications due Nov. 1 with a $25 fee; owners revalidate annually (FAQ); forest needs 20 acres and ag 5 acres in production, excluding the home site
Albemarle	Revalidate every two years; ag or horticulture must produce at least $1,000 a year per parcel in revenue from the qualified use

If you’re buying, the revalidation deadline matters. Goochland’s FAQ says a parcel that misses its revalidation is removed from the program and taxed at market value the next year.

Who pays rollback taxes when land is sold?

By statute, the owner at the time the use changes. Your purchase contract can shift that cost, so read it. If the seller’s plan (like a recorded subdivision or a rezoning) is what triggers the rollback, or if you know you’ll change the use right after closing, settle in writing who pays before you sign.

Starting Jan. 1, 2027, Virginia’s Residential Property Disclosure Act adds a rollback notice to the “buyer beware” disclosures. The new item in Va. Code § 55.1-703 says the owner makes no representation about whether the property is in a land use program, and it advises buyers to check with the commissioner of the revenue or assessor about rollback liability. In plain terms, the law puts the homework on you. Our guide to what Virginia sellers must disclose covers the rest of that act.

What should you check before buying land in Virginia?

• Look up the parcel on the county’s GIS or assessment record to see whether it’s in land use and in which category.
• Ask the assessor for an estimate of the rollback on the part you plan to change, such as a two-acre homesite.
• Match your plans to the program. Building, subdividing or ending farm or forest use can trigger rollback. Continuing the qualifying use doesn’t.
• Budget for it in your offer and write who pays into the contract.
• Check the revalidation calendar so the land doesn’t fall out of the program between contract and closing.
• Check the rest of rural due diligence, like wells, septic and surveys. See buying a house with a well and septic system in Virginia.

When I look at a land purchase with a buyer, I want the assessment card, the land use status and the buyer’s real plans for the property on one page before we talk price. A $15,000 rollback changes what the land is worth to you.

The bottom line

Rollback taxes aren’t a penalty for buying farmland. They’re deferred taxes that come due when the land stops being used the way it qualified, and the owner at that moment pays. Know the status, estimate the bill and put it in the contract.

If you’re looking at land or a rural home around Richmond, Charlottesville or Lynchburg, Daniel and the Keeton & Co team can help you run the numbers before you write an offer. See how we help buyers or contact us at (804) 556-1228. Selling land? Start with our seller services.

Sources: Va. Code §§ 58.1-3230, 58.1-3233, 58.1-3234, 58.1-3237 and 55.1-703 (version effective Jan. 1, 2027); land use pages for Hanover, Goochland and Albemarle counties. All accessed Nov. 9, 2026. General information, not legal or tax advice. By Daniel Keeton, Broker & Founder, Keeton & Co Real Estate. Updated Nov. 9, 2026.