Table of Contents

1.  Revenue Summary – An overview of income sources collected by the City, including taxes, fees, grants, and other funding streams.

2.  Expenditure Summary – A breakdown of how City funds are allocated and spent across departments, services, and programs.

3.  Property Taxes Explained – A clear explanation of how property taxes are calculated, assessed, and used to fund City government services.

4.  Millage Rate – The rate applied to assessed property value to determine property tax owed, typically expressed per $1,000 of assessed value.

5.  Municipal Cost Comparison – A comparison of costs between municipalities to show differences in taxes, services, and spending efficiency.

6.  Capital Improvement Plan – A long-term plan outlining major infrastructure projects, their timelines, costs, and funding strategies.

The FY26 General Fund budget is $225.9 million, a 7.4% increase over the FY25 budget of $210.3 million. Property taxes are the largest source of revenue for the General Fund. The increased revenue enables the City to reach strategic plan targets of hiring 20 additional police officers, maintain over 100 parks, and add additional sidewalks and roads.

For FY26, property taxes are budgeted at $77.7 million, which represents 34.4% of General Fund revenue. 

Florida law requires each County’s Tax Collector to send one consolidated tax bill rather than have each government send separate tax bills to notify each property owner of their annual ad valorem and special assessment obligations. All local governments and special districts in Leon County use this single tax bill. However, the City of Tallahassee is allocated only a portion of the tax bill.

The example below illustrates a tax bill for a resident of City of Tallahassee with a property with an assessed value of $300,000 and a $50,000 homestead exemption. Of the $3,018 in assessed taxes in the example below, the City of Tallahassee receives $661.

The City of Tallahassee’s millage rate is 4.4072, a decrease of .0128 mills compared to the last fiscal year. The City’s millage rate of 4.4072 mills is among the lowest of the 20 largest cities in Florida. It is the third lowest of the 12 cities in the Municipal Cost Comparison, an annual study of costs of living and doing business in municipalities across Florida. The chosen cities share similarities to Tallahassee in population, range of services provided, and rate of taxable property.

Below is the City of Tallahassee's millage rate compared with three cities.

When measuring costs to citizens, the City compares itself to a group of eleven cities that share similar demographics, services provided, and square miles served. The Municipal Cost Comparison below compares the costs paid by residential and commercial citizens for municipal services.

City utilities undergo regular fee studies to ensure that costs for services are recovered and paid for by those that benefit. The municipal cost comparison, however, demonstrates the competitiveness of rates compared to peer cities across the state. The City ranks as one of the most affordable to citizens year after year.

Click here for additional information on the FY26 Municipal Cost Comparison