New Orleans City Council Will Consider Property Tax Hike

The city will evaluate a proposal to increase property tax rates by 7.44 mills for the 2027 fiscal year.

Updated on Sept. 28, 2026 in City Hall

Isometric editorial illustration featuring the geometric, repeating pattern of an ornate iron balcony railing in muted tones. — The New Orleans City Council will debate a proposal to increase property taxes by 7.44 mills, potentially generating $42.25 million for municipal services. AI Illustration. Upload story photo >

Live Poll

Will you support the proposed 2027 property tax increase in New Orleans?

New Orleans City Council members are set to discuss a proposed property tax rate increase during budget hearings beginning September 29, 2026. The plan aims to generate an additional $42.25 million in municipal revenue for 2027.

Why it matters

The proposed tax increase is intended to bolster city funding for 2027, though it faces critical scrutiny as residents and officials weigh the impact on property owners. The city has presented two options, including one that rolls forward higher millage rates to meet the revenue goal.

The proposal raises the general municipal millage from 12.23 to 13.91 mills, pushing the total proposed rate from 44.67 to 52.11 mills. Residential properties are assessed at 10% of fair market value, while commercial and industrial buildings are assessed at 15%.

The players

New Orleans City Council

This is the governing legislative body for New Orleans that holds the authority to approve municipal budgets and local tax rates.

The details

The plan includes three specific millage increases for police and fire services that are not covered by the $75,000 homestead exemption. Officials are deliberating between two versions of the tax levy, one of which maintains current adjusted rates while the other rolls forward the increases.

September 29, 2026: The City Council begins budget hearings.
November 5, 2026: A public hearing is scheduled to discuss the proposed millage rates.

Political Context

Property tax debates in Louisiana are frequently shaped by the homestead exemption, which shields a portion of primary residence value from taxation. Opponents of millage increases often argue that such hikes place undue burdens on homeowners, while supporters emphasize the necessity of funding essential public services like police and fire.

The proposed increase will likely result in higher property tax bills for both residential and commercial property owners in 2027. Homeowners should note that the $75,000 homestead exemption will remain in place for most taxes, but not for the specific new millage allocated to police and fire services.

The takeaway

Residents should review their property assessments to understand how a 7.44-mill increase would translate to their personal tax obligations. Engaging in the November 5 public hearing provides an opportunity for taxpayers to provide feedback on the city's budgetary priorities.