Tempe proposes property tax increase

On top of a proposal to raise sales tax just sent to the November ballot, Tempe is now proposing two new property tax increases for education and capital improvements.  

Now, the city is proposing an increase in primary property taxes to collect $462,905 or 2%.  

The city says the overall levy on existing properties will increase by 5%. While the city receives about 24% of residents’ total property tax bill, the majority goes to supporting education, including K–12 school districts and community colleges. 

City officials will hold a public hearing on the rates at 6 p.m. June 4 at the City Council Chambers in the basement of City Hall , 31 E. Fifth St. in downtown Tempe. The city of Tempe is required to notify its property taxpayers of its intention to raise its primary property taxes over last year's level. 

Tempe officials say the city will only increase the rate necessary to make annual payments on voter-authorized bonds. Together, the primary and secondary levies form the city’s overall property taxes. The overall city property tax rate will slightly increase in fiscal year 2026-27 from $2.4593 to $2.5626 per $100 of assessed value.  

The city uses the example of proposed tax increase will cause Tempe's primary property taxes on a home assessed at $300,000 to be $265.53. Without the proposed tax increase, the total taxes that would have been owed on a home assessed at $300,000 would have been $260.34.

In December, the Kyrene Elementary School district opted to close six schools by 2028 citing low enrollment and lack of funding from the state. In 2024, Tempe Union High School District cut dozens of positions, citing enrollment decline and funding challenges.  

 The proposed increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter-approved bonded indebtedness or budget and tax overrides.