Residents of Arlington have the opportunity to express their views on a potential tax rate hike at 2 public meetings, or town halls.
Arlington City Council Proposes 3-Cent Property Tax Increase to Address Budget Deficit
The Arlington City Council has proposed a 3-cent increase in the property tax rate for the 2026 budget, aiming to avoid a $25 million budget deficit and prepare for upcoming financial challenges.
The proposed tax increase is expected to raise over $11 million in additional revenue. 2 cents (approximately $7.4 million) will be used to balance the 2026 budget, preventing cuts to city services, while 1 cent (approximately $3.7 million) will help the city address the expected loss of revenue from a new business property tax exemption and obligations related to traveling housing finance corporations starting in 2027.
The increase would result in an average monthly increase of $5 for the average Arlington homeowner's property tax bill next year. This is a more preferable option compared to more controversial budget cuts such as reducing employee benefits or foregoing cost-of-living raises, which have faced opposition from police and firefighter unions.
The city has seen an unusually high number of successful property value protests, with the median taxable home value in Arlington standing at $330,000. The homestead tax exemption, the largest claimed in the city, is used by more than 62% of all tax accounts. Arlington offers the maximum allowed homestead tax exemption by the state, with the same Arlington homeowner paying the city $1,662.67 in 2026 after the exemption.
Under the proposed tax rate of 62.98 cents, the owner of the median-valued home would pay $2,078.34 in 2026. The Arlington City Council plans to vote on the proposed tax rate in September, with the first vote scheduled for Sept. 9 at 6:30 p.m.
The council has also announced that the Tax Assessor-Collector's Department (TAD) will not reappraise property values in 2026. The TAD board conducts valuations every other year, with the next round scheduled for 2027.
The city will have two town halls to hear from residents on Thursday and Aug. 21 to discuss the proposed tax rate. Another $3.7 million from the tax increase could help the city avoid budgetary challenges in 2027. Additionally, an average increase of $7 a month in fees for utilities like water and sewage is also expected due to the tax increase.
The council voted unanimously to give city staff the go-ahead to propose the 3-cent tax increase at a meeting Tuesday. The rate will be brought back to the council for approval in September.
[1]: Link to the official city council meeting minutes or related news article [2]: Link to the city budget proposal or related news article [3]: Link to the utility fee increase announcement or related news article (if available)
