AI-generated summary reviewed by our newsroom.
Raleigh passed its budget Monday, which raised the city’s property tax rate despite cutting spending by around 1%.
Read more This year, an NC animal rescue will take in 150 baby deer orphaned by passing cars
The new tax rate of 37.2 cents per $100 of assessed property value will give the owner of a $391,000 home, the median assessed value in Raleigh, a city property tax bill of $1,454.50. That’s a nearly $67 increase.
The fiscal year 2027 budget, which will take effect July 1, totals $1.76 billion, a decrease from this year’s budget of $1.78 billion.
It funds almost two dozen new police officer positions as well as a dozen new firefighter positions. However, it eliminates 45 currently vacant city positions and holds vacant another 26 positions.
The City Council didn’t change anything from the original budget proposed by City Manager Marchell Adams-David.
Combined with an average of almost 5% in increases in fees for solid waste, water and sewer services and stormwater services, a resident could see a total increase of $122 to annual bills just from the city.
Read more Investigation Into Dianna Russini and Mike Vrabel Remains Ongoing: Report
Wake County also passed a tax rate increase, meaning Raleigh property owners will have to pay additional costs from both bills.
The combined tax increase for the median homeowner is approximately $144, bringing combined bills up to nearly $3,600.
The reason the city had to make those cuts is because revenue increases it normally expects from property taxes aren’t materializing next year.
The city relies on property tax revenue to consistently go up, but due to several factors, it’s not expected to this year. The city expects to lose millions from property tax exemptions, for example.
Thousands of property owners have appealed higher assessed home values that came out in 2024, and in April city officials said many of those cases have yet to be resolved, placing another $125 million of Raleigh’s tax base in limbo.
Read more Look Back at Andy Cohen’s Dating History Amid Romance With Kevin Sobieski
This story was originally published June 8, 2026 at 6:14 PM.