Fairfax County Revenues and Returns Analysis

This study was commissioned by Fairfax County to examine the flow of funds between the County and the Commonwealth of Virginia. It provides a comprehensive “revenue and return” analysis to quantify how much state revenue is generated in Fairfax County and how much state spending and aid flows back to the County. This executive summary highlights the key findings, showing Fairfax County’s contributions to state revenues and demonstrating its status as a net donor locality. Comparative statistics and tables are provided to show Fairfax’s contributions, the returns it receives, and how it stands relative to neighboring jurisdictions, including a comparison of Fairfax’s contributions and returns with those of other large affluent, high-growth Northern Virginia localities—Arlington County, Loudoun County, and Prince William County.

Fairfax County is a major net contributor to Virginia’s finances. The County’s approximately 13% of Virginia’s population generated over 20% of the state’s General Fund revenue in FY 2024, yet only about 10–11% of state expenditures were directed back to the County. Fairfax’s situation is not unique among wealthy Northern Virginia jurisdictions (Arlington and Loudoun also see well under $1.00 returned per $1.00 contributed), but Fairfax’s sheer scale makes the gap the most consequential in terms of dollars. Billions of Fairfax-generated tax dollars are redistributed annually to support programs elsewhere in Virginia, making it a significant net contributor to the Commonwealth. These findings carry important policy implications for Fairfax County and the Commonwealth of Virginia. For Fairfax County leaders and residents, the study illuminates the revenue generated by Fairfax County and the state money spent in Fairfax County and the net results that demonstrate the County's role as a key fiscal anchor and contributor to the Commonwealth. For the Commonwealth, the analysis highlights the ongoing challenge of balancing state support to various regions of the state. Going forward, this study’s data can inform discussions on state funding formulas, aid allocations, and infrastructure investment.