Charlottesville City Manager Proposes 2-Cent Real Estate Tax Hike in $279M 2027 Budget

Increased revenue needed to fund priorities like affordable housing, public safety, and education

Published on Mar. 3, 2026

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Charlottesville City Manager Sam Sanders presented a $279 million general fund budget proposal for 2027 that includes a 2-cent increase in the real estate tax rate. Sanders says the tax hike is necessary to balance the city's budget priorities, which include affordable housing, public safety, transportation, and education.

Why it matters

The proposed tax increase reflects the financial challenges facing Charlottesville as home values continue to rise rapidly, putting pressure on the city's budget and residents. The budget aims to address key community needs, but the tax hike could impact affordability for homeowners.

The details

The 2-cent increase would bring the real estate tax rate to $1 per $100 of assessed value. Sanders noted that Charlottesville has some of the highest home values on the East Coast, with an average home price of nearly $549,000 in 2026. The additional $2.4 million in revenue from the tax hike would help fund priorities like expanded transit, school funding, and collective bargaining impacts for city employees.

  • The City Council will hold budget workshops on March 5 and 12.
  • A public hearing on the advertised real estate tax increase will be held on March 16.
  • Another public hearing on the budget and tax rate will take place on April 6.
  • The City Council is expected to adopt the final budget on April 9.

The players

Sam Sanders

Charlottesville City Manager who presented the $279 million budget proposal.

Charlottesville City Council

The governing body that will review and approve the city's 2027 budget.

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What they’re saying

“That is necessary to balance all the things I just went through and being able to make those things happen and meet the priorities that were identified for us in this cycle.”

— Sam Sanders, Charlottesville City Manager (cvillerightnow.com)

“That in itself speaks to the challenge that exists for those living in our community and trying to manage when things are that tight and that difficult.”

— Sam Sanders, Charlottesville City Manager (cvillerightnow.com)

What’s next

The Charlottesville City Council will hold additional budget workshops and public hearings in the coming weeks before adopting the final 2027 budget on April 9.

The takeaway

Charlottesville's rising home values and the need to fund key priorities like affordable housing, public safety, and education are driving the city manager's proposal for a 2-cent real estate tax hike. The budget process will involve further public input before the final plan is approved.