City Council Sets Preliminary 2026–2027 Tax Levy

The Rochester City Council has set the 2026 preliminary property tax levy at $118,284,623 and has established the preliminary 2026 Operating and Capital Budget at $663,901,470. This reflects a 5.95% increase from the prior year. The preliminary levy sets the maximum amount of property tax revenue that may be collected, though the final levy adopted in December may be lower.

An increase in the levy amount does not directly translate to an equal increase in property tax bills. For taxes payable in 2026, property values in Rochester rose by 6.58%, with 1.77% of that growth driven by new construction. The projected local tax rate change is 0.16%. The impact on individual property owners will vary depending on property classification, value, and the overall tax base.

Next Steps in the Budget Process

• December 1, 2025: Public hearing and adoption of the final 2026-2027 budget and levy

Residents are encouraged to stay engaged in the budget process and learn more about how property taxes are calculated by viewing the City's short educational video: How Your Property Taxes are Calculated.

"Setting the preliminary levy is an important step in Rochester's budget process," said City Administrator Alison Zelms. "It ensures we can provide high-quality services, maintain public safety, support a strong local economy, and fiscal responsibility while also giving taxpayers clear information about their maximum potential cost."

More Information
Budget documents are available on the City of Rochester website. City Council meeting dates, times and agendas are also available on the City's website.