BPOL Taxes in Fairfax County: What Real Estate Investors Need to Know in 2025

Homeowners and investors in Fairfax County are well aware that with property ownership comes the obligation to pay real estate taxes. But there’s another lesser-known tax that may apply to landlords: the BPOL tax.

If you own rental property in Fairfax County and rent out multiple units, you could be operating a taxable business under county law—even if you don’t think of yourself as a business owner.

What Is the BPOL Tax?

BPOL stands for Business, Professional and Occupational License tax. It is assessed annually on businesses operating within Fairfax County based on their gross receipts—not net income.

BPOL applies broadly across industries. For example:

• A property management firm might pay a BPOL rate of $0.31 per $100 in gross receipts.

• Landlords, too, can fall under BPOL obligations—if they rent out more than four dwelling units in the county in any calendar year.

BPOL Tax Rate for Rental Properties

If you rent five or more dwelling units, you may owe:

• $0.26 per $100 of gross rental receipts, or 0.0026

This applies whether you self-manage or have a third-party property manager.

Who Must File?

The BPOL requirement is triggered if you:

• Own and rent five or more residential units in Fairfax County, OR

• Lease commercial or industrial space, unless the lease income is incidental to another primary business

This includes:

• Single-family homes

• Apartments

• Condos

• Townhomes

Importantly, it’s not just about ownership—it’s about how many units are rented in a calendar year, regardless of whether they are rented simultaneously.

Definition of “Dwelling Unit”

Per the Fairfax County Code:

A dwelling unit is defined as one or more rooms in a house or apartment designed for occupancy by one family for living purposes and containing cooking facilities.

So, if you rent out multiple units with separate kitchens—even within the same structure—they may count as separate dwelling units for BPOL purposes.

Are You Exempt?

Yes—if you rent out four or fewer units, you are not subject to BPOL under the current law.

The specific exemption clause from the Fairfax County Code of Ordinances § 4-7.1-27 states:

“The rental receipts of any person who rents no more than four (4) dwelling units in any calendar year are not subject to taxation pursuant to this Article.”

View the full ordinance here:
Fairfax County BPOL Rental Code

Recent Developments and 2025 Enforcement Trends

• Increased enforcement: Fairfax County has stepped up enforcement in recent years. Investors who’ve crossed the five-unit threshold without realizing it have been assessed back taxes—sometimes going back years.

• No warning notices: There’s often no proactive notice when you hit the fifth unit. The burden is on the owner to file.

• Audit risk: If your ownership is discoverable via tax records or deeds, the county may audit for unreported BPOL liability.

A recent client was shocked to receive a bill for back taxes going back to the year he acquired his fifth rental property.

Filing and Payment

BPOL filings are typically due by March 1 each year. You’ll need to:

• Register for a BPOL license with the Fairfax County Department of Tax Administration (DTA)

• Report your gross rental income

• Pay the tax owed (based on the 0.0026 rate)

The DTA website provides registration forms and additional guidance.

What Should You Do Now?

If you:

• Own four or fewer rental units – You’re likely exempt

• Own five or more units – You should register and file annually to avoid future penalties

Even if you’re unsure, it’s wise to confirm with the DTA to avoid issues down the road.