Charlotte could see a double dose of tax hikes July 1 under city’s proposed budget
Charlotte property owners could experience their highest tax hike in at least a decade under a proposed budget presented to the City Council on Monday.
City Manager Marcus Jones is asking to increase property taxes by 1.89 cents per $100 in valuation, or about $5.71 per month for the “typical homeowner.” Every cent generated under the increase would fund the police and fire departments and help cover pay raises that are “higher than what is typical” for police and firefighters, Jones said. Utility fees would also increase under the proposal.
Charlotte residents will already pay higher taxes this year after voters approved a 1% sales tax increase to pay for transportation projects. That tax, however, takes effect countywide and applies to purchases rather than owned property.
If the City Council approves the proposed budget, both tax bumps would hit at once, on July 1.
“It’s really important when a municipality looks to raise taxes, it does so with a clear benefit and a clear reason,” Jones told reporters. “It’s critical that we keep pace with the growth and we continue to provide exceptional services every day.”
The proposed $4.5 billion financial plan covers July 1 through June 30, 2027. It also calls for a raise of 4% for city employees, and an increase from $24 to $25 in hourly compensation for Charlotte’s lowest-paid employees.
And Jones is asking for a $125 million bond referendum for affordable housing, with a special carve out for displacement efforts as the region invests in expanded transit opportunities. The bond referendum is a normal recurring ask, but this year's value is higher than past years.
Why Charlotte is considering property tax, fee increases
Charlotte has the lowest property tax rate of the 13 largest cities in the state, according to Jones. The current rate is $27.41 cents per $100 in value. Property tax applies to things like homes and cars.
The city has only raised property taxes twice in the past 10 years, most recently by 1.37 cents in 2024 to pay for arts and culture grants, public safety and capital investments.
The new increase would go entirely toward public safety, raising the total public safety budget by $85 million over last year.
Police officers stand to benefit most, with 10% raises, dashboard cameras and 35 new take-home vehicles they can use off the clock.
Firefighters would receive 7% raises, six replacement fire trucks and three ladder trucks.
The two departments have different levels of need, Jones said.
“We have a problem with attracting and retaining police officers. We don’t have the same problem with attracting and retaining firefighters,” Jones said. “They’re both extremely important to the success of the city. It’s just that we have a bigger problem right now with filling police positions.”
Utility fees would also increase under the proposal, with solid waste increasing by $1.38, water and sewer by $4.41 and storm water by 48 cents to a typical user monthly fee. Jones didn’t elaborate more on the fees increases.
Charlotte eyes $125M affordable housing bonds
The city is making its largest-ever ask for the planned affordable housing bond referendum that goes before voters every two years.
The Housing Trust Fund provides financing to developers to create or preserve affordable units. That fund relies on voter-approved bonds.
Charlotte voters typically approve bond referendums without much resistance. In 2024, voters approved the city’s request to double its housing bond from $50 million to $100.
Jones wants to increase the bond amount once again this cycle, to $125 million.
The additional quarter-million would fund efforts to counteract displacement, he said, which has taken an outsize focus in the past year in light of the transportation sales tax referendum and the Interstate 77 toll lane expansion.
“Anti-displacement can be everything from land purchases so that you’re able to build affordable housing to making sure that we do things for individuals to be able to stay in their homes,” Jones said. “Simple things like, if a roof repair is going to get you displaced, let’s figure out a way that e can connect people with the resources to repair a roof.”
His 2026 proposal includes two other bond asks: $266 million for transportation upgrades like street resurfacings and sidewalks, and $44 million for other neighborhood projects.
The City Council did not comment or ask questions on Monday. It will next face a public hearing on May 11, where residents can share their thoughts. Then, on May 18, the City Council will discuss adjustments for the first time.
The council will hold a straw vote on May 25, where a majority of council members can advance changes to be included in the final version.
The final budget adoption is planned for June 8.
This story was originally published May 4, 2026 at 6:24 PM.
