Peoria Proposes 2027 Property Tax Levy

Peoria property owners may see higher tax bills in 2027 despite a slight decrease in the proposed tax rate.

Updated on Oct. 21, 2026 in Taxes

Isometric editorial illustration of a brick municipal building facade beside a stack of residential tiles, representing city property tax allocations. — Peoria city officials have proposed a $41 million property tax levy for 2027 to address rising public safety pension and infrastructure costs. AI Illustration. Upload story photo >

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Do you expect your total property tax bill to increase in your community next year?

The city of Peoria has proposed a $41 million property tax levy for 2027 to cover costs including road work and public safety pensions. Although the proposed tax rate will drop to $1.50 per $100 of equalized assessed value, residents are still expected to pay more due to rising property values.

Why it matters

Rising property values and national inflationary pressures continue to drive up tax burdens for homeowners. Property tax levies are critical to funding public services, including the city's library system and local school districts.

The proposed 2027 tax rate is $1.50 per $100 of equalized assessed value, a decrease from the $1.51 rate in 2026. Schools account for 59% of a typical tax bill, followed by the city at 12%, the county at 9%, and the park district at 8%.

The players

Peoria City Council

This is the governing body for the city of Peoria responsible for final approval of the municipal property tax levy.

The details

Peoria plans to allocate $29.4 million of the total levy to city operations and $11.1 million to the public library system. This funding follows a year where public safety pension costs alone reached $39 million.

2026: The city levied approximately $39 million in property taxes.
October 20, 2026: The city of Peoria proposed its 2027 property tax levy.
November 10, 2026: The city holds a truth in taxation hearing.
December 8, 2026: City Council holds a final vote on the levy.
2027: Property tax bills are expected to increase.

Market Dynamics

The city's fiscal strategy is governed by the state's Truth in Taxation Act requirements for public transparency. This process forces municipalities to justify levy increases against historical inflation cycles and rising pension liabilities.

Homeowners should prepare for a potential increase in their total tax obligation for the upcoming year despite the lower proposed millage rate. Property owners may need to adjust their monthly escrow contributions to account for the anticipated rise in overall tax bills.

The takeaway

Even when tax rates decrease, rising property assessments often lead to higher overall tax payments for residents. It is important to review annual property assessment notices to understand how changes in market value will specifically affect your household budget.

What happens next

The city will hold a truth in taxation hearing on November 10, 2026, followed by a final City Council vote on the levy scheduled for December 8, 2026.