Raleigh Residents Brace for Potential Tax Hikes

City faces $13 million budget shortfall, considers raising property taxes to cover costs

Apr. 10, 2026 at 3:18am

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A serene, nostalgic painting of a residential street in Raleigh, North Carolina, with warm sunlight casting long shadows across the homes and trees, conveying the contemplative mood of a community concerned about the burden of rising property taxes.As Raleigh residents brace for potential tax hikes, a sense of unease settles over a quiet neighborhood street, reflecting the financial strain many face.Today in Raleigh

Raleigh, North Carolina residents are expressing concerns over the possibility of rising property taxes as the city faces a $13 million budget shortfall. City budget officials have warned that a tax increase may be unavoidable to address the gap between expenses and revenue, which has been exacerbated by factors like affordable housing exemptions and unresolved property value appeals.

Why it matters

The potential tax hikes would disproportionately impact fixed-income residents, many of whom are already struggling to keep up with rising costs. This issue highlights the broader challenges cities face in balancing budgets and providing essential services while maintaining affordability for residents.

The details

According to city budget director Sadia Sattar, property taxes are no longer a reliable source of revenue for Raleigh due to factors like affordable housing exemptions and unresolved property value appeals. City leaders now face a choice between reducing services or raising taxes to address the $13 million shortfall.

  • During a recent City Council work session, budget officials warned that a property tax increase is likely needed.
  • Raleigh's budget recommendations are expected to be released in May, followed by public hearings where residents can provide feedback.

The players

Tommy Gattis

A retired Raleigh firefighter who lives in a townhome community and has seen property taxes steadily rise over the years, making it increasingly difficult for him and his neighbors to afford.

Betty Dolby

A resident of southeast Raleigh who has seen her property taxes increase significantly, from $350 the first year to $1,500 this year, making it hard for her to manage on a fixed income.

Sadia Sattar

The budget director for the City of Raleigh, who warned city council members that a property tax increase is likely needed to address the $13 million budget shortfall.

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What they’re saying

“There remains little doubt that we will need to raise property taxes to solve this base budget gap.”

— Sadia Sattar, Budget Director, City of Raleigh

“The elderly lady that lived there had to move out because she couldn't afford it anymore. She's lived here for 30 years. Just taxes and things were going up.”

— Tommy Gattis, Raleigh Resident

“It's hard to when you're on a fixed income.”

— Betty Dolby, Raleigh Resident

What’s next

The city's budget recommendations are expected in May, followed by public hearings where residents can provide feedback on the proposed tax increases and any potential service reductions.

The takeaway

This situation in Raleigh highlights the difficult balancing act that cities face in maintaining essential services and infrastructure while keeping taxes affordable for residents, especially those on fixed incomes. The outcome of this debate will have significant implications for the city's long-term financial stability and the quality of life for its residents.