Raleigh homeowners can expect to pay more in city property taxes next year compared to 2024, according to the city’s proposed budget.
The median home value in the city for fiscal year 2025 – which runs from July 1, 2024 – June 30, 2025 – is about $391,705. It’s an increase from the median home value of $257,730 in fiscal year 2024, which ends on June 30, 2024.
While the proposed tax rate of $0.3550 for the upcoming fiscal year is lower than the 2023-24 tax rate of $0.4330, Raleigh homeowners can still expect to pay more in taxes due to the increases in property values.
A Raleigh homeowner with a median-valued home ($391,705) can expect to pay $1,391 in city taxes, according to city documentation. To compare, when the median home value was $257,730 just a year ago, the owner of that home paid about $1,115 in city taxes.
That’s an increase of $276 for that homeowner in the coming year.
There is a public hearing scheduled at 7 p.m. Tuesday, June 4 for residents to discuss the budget before the Raleigh City Council. The Raleigh Municipal Building at 228 W. Hargett St. will host the meeting.
Raleigh leaders are expected to begin budget work sessions on June 3. They will occur at 4 p.m. on Mondays as needed throughout the month of June. The city council must approve the budget by July 1.
"The increase in property tax is needed to balance the growing need and demands of our community," said Sadia Sattar, the director of Raleigh's budget and management services.
Raleigh property owners will pay more to city, Wake County
Wake County property taxes are also expected to increase.
The proposed county budget decreases the current tax rate from 65.7 cents to 51.05 cents per $100 of valuation, a 22% reduction.
However, like the city of Raleigh’s proposed budget, Wake County property owners will owe more money because the value of their property has increased.
In 2020, the median price of a home in Wake County was $257,730. That homeowner paid about $1,693.29 per year in county taxes.
In 2024, the median price of a home in Wake County rose to $391,705. That homeowner would pay about $1,999.65 under the proposed tax rate.
If both budget proposals pass as written, a homeowner in Raleigh would pay about $600 more per year.
At 7 p.m. Tuesday, the Wake County Board of Commissioners will hold a meeting where the public can speak about the proposed budget. The meeting is at the Wake County Commons Building at 4011 Carya Drive in Raleigh.
From 9 a.m. to 1 p.m. Thursday, commissioners will hold a budget work session.
Wake County commissioners are scheduled to vote on the budget adoption at their meeting at 5 p.m. on Monday, June 3.
Other parts of Raleigh's proposed budget
On Tuesday, Raleigh City Manager Marchell Adams-David released her proposed $1.4 billion budget for fiscal year 2025.
"The theme of this year's budget is investing in Raleigh's future," Adams-David said.
Residents' demands range from increased funding for Dix Park, the opening of Gipson Play Plaza and adding more money for affordable housing.
The proposed budget includes:
- It includes funding for the Scott, Brown, and Lineberger buildings at Dix Park and an additional 25 acres of landscaped areas.
- Supports the anticipated opening of Gipson Play Plaza in spring 2025.
- Three positions for programming at Gipson Play Plaza, 13 positions for maintenance at Dix Park, operating needs for Gipson Play Plaza (expected to cost about $3.4 million)
- Adding $17 million more for public safety, including a new alternate response unit to address 911 calls instead of the police
- Expanding the Raleigh Police Department's ACORNS unit, which works to address homelessness.
"Contrary to what many people believe, we do need our police department," Adams-David said.
In the proposed budget, public safety employees will have higher starting salaries and get a bump in pay to be more competitive with other communities. It amounts to an average 10% raise for firefighters, 911 call center workers and police.
The police association was asking for a 15% increase in pay.
WRAL News asked Raleigh Police Protective Association President Matt Cooper if the 10% raise will help with recruitment and retention of officers.
"I think it will help, but I think more needs to be done for a stronger commitment to public safety in the city," Cooper said.
Maintenance and operations workers, including the people who collect trash every day, will also get higher pay in the proposed budget.
"I also am very excited to see the salary increases for public safety, solid waste services, Raleigh water, our essential personnel," said District D Raleigh city council member Jane Harrison. "They are who get the job done, so it’s huge."
