FY 2026 Budget

Preparing the Budget

Each year, the City of Arlington works diligently to create a budget that supports City services, is fiscally responsible and focuses on the City Council’s priorities. For Fiscal Year 2026, several unique challenges are influencing how City staff are approaching the budget:

ARPA Funding: After COVID, the City gradually eased expenses covered by ARPA funding back into the general fund. FY2026 is the last year of this process.
Senior Tax Freeze: Arlington’s increasing senior population enjoys a senior tax freeze once they turn 65, meaning even if their property increases in value, the City portion of their tax bill will stay the same.
Conservative Valuations: Arlington is projecting growth in property values lower than recent historical norms and notably lower than adjacent counties.
Property Tax Protests: The City has seen significant loss in property value through protests, particularly in multi-family residential and commercial properties. The historical loss during the protest period has been between 0.5% and 1%. Last year, the loss was 3%.
New Reappraisal Plan: Following a freeze this past year, Tarrant Appraisal District’s plan is to not reappraise residential properties for two years means Arlington can assume there will be no increase in property values for that period of time.

As City staff works to craft the FY2026 budget, they are keeping the City Council’s new priorities in mind:

Enhance Mobility
Grow Our Economy
Preserve Financial Stability and Resilience
Strengthening Our Communities

Budget Documents

Piecing It Together

Through August, our “Piecing it Together” budget series will provide a high-level overview of the unique situational and economic factors impacting Arlington’s budget this year. Have a question or topic you’d like to see included? Send us a message.

Arlington's Advantage: Lower Taxes and Utility Costs Benefit Residents

A comparison of North Texas cities finds that Arlington residents benefit from comparatively lower city property taxes and utility bills than other municipalities.

Understanding the City’s Low Historical Property Tax Rate

Each August, the Arlington City Council sets the City’s property tax rate as part of the annual budget approval process. And when you compare this to neighboring cities, you’ll find that Arlington’s property tax rate is lower than those in Mansfield, Kennedale, Dalworthington Gardens, Fort Worth and Dallas.

Arlington's Property Tax Exemptions Help Save Residents Money

For decades, the City Council has authorized a variety of exemptions to provide property tax relief for Arlington residential property owners.

City Recognized for Outstanding Fiscal Stewardship and Transparency

The City of Arlington continues to be recognized for its strong financial performance and commitment to transparency, earning accolades from national and state organizations.

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