As it deliberates its Fiscal Year 2026 budget, the Alexandria City Council, on Tuesday, will set the ceiling for a tax rate increase.
This time last year, Council set a 4-cent tax ceiling, eventually deciding on a 2.5-cent real estate tax increase.
Without any City Council actions or additions to City Manager Jim Parajon’s budget, Alexandria’s average real estate tax bill will go up by $353 this year as most property values have risen 2.57% year-over year. Parajon is asking to maintain the real estate tax rate of $1.135.
The tax ceiling sets the financial constraints for City Manager Jim Parajon and his staff in crafting the budget, which is set for a final vote on April 30.
City Council Member John Taylor Chapman wants to advertise between a half cent and a cent tax rate increase to allow the city wiggle room in its budgeting.
“I would like to advertise between a half cent and a cent, not knowing how the federal cuts/changes will affect things in the next two months,” Chapman told ALXnow via text.
Just what a potential tax increase would pay for will be unveiled to the public on Tuesday, April 8, which is also the date of City Council’s budget add/delete session. Council will formally adopt a tax rate that evening.
One cent added to the real estate tax rate adds up to about $4.7 million for the city, and would result in a $280 average annual increase, according to the city.
