Raleigh passes smaller city budget. Why the tax rate is still going up
AI-generated summary reviewed by our newsroom.
- Raleigh approved a $1.76 billion fiscal year 2027 budget with a 37.2¢ tax rate.
- The budget adds 23 police officers, 12 firefighters, three fire marshals and six 911.
- Cutting 45 vacant positions saves $3.5 million and holding 26 saves $1 million.
Raleigh passed its budget Monday, which raised the city’s property tax rate despite cutting spending by around 1%.
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.
How residents’ bills are affected
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.
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.
What’s in the budget?
- $2 million for cleaning and maintaining city parking garages as well as keeping the two-hour free parking program in five garages
- Additional funds for minimum pay increases implemented in September 2025, initially costing $35.8 million, that are being fully implemented this year. Pay increases total between 11% and 14% in the proposed budget and last year’s budget. The increases were recommended in a staffing study to keep the city’s wages competitive.
- Over $600,300 for six new building safety positions involved in building permitting and inspection
- 23 new police officer positions for around $3.8 million
- Three fire marshals, 12 firefighter positions and more funding for a second fire academy with a fire department budget increase of $3.31 million
- Six new 911-call operators for nearly $500,000
What’s being cut?
- 45 currently vacant positions, all outside of public safety, saving $3.5 million
- Holding 26 positions vacant for the beginning of fiscal year 2027 saving $1 million
- Changing retirement medical benefits for new employees, requiring five more years of service for qualification, which saves around $1.5 million
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.
This story was originally published June 8, 2026 at 6:14 PM.
