Baltimore City is set to see a significant boost in its general fund for the fiscal year 2026, with an increase of $256 million, marking an 11% rise. This growth is accompanied by a slight increase in city employment, with the position count rising by 66, or 1.7%.

The total general fund now stands at approximately $2.6 billion, with the three largest revenue sources identified as property tax, income tax, and highway user revenue. Property tax alone accounts for over 46% of the budget, reflecting a growth of $58.8 million, or 4.9%, compared to the previous fiscal year. Notably, there will be no change in the property tax rate, which remains at just over $2 for every $100 of assessed value for owner-occupied units.

The reassessment of properties in the northern part of the city, particularly downtown, has revealed a substantial increase in property values, with residential properties growing by 21% and commercial properties by 11%. However, Baltimore City’s growth in commercial assessments lags behind the statewide average of 16.4%, indicating a need for strategic focus on enhancing commercial property values.

Additionally, transfer and recordation taxes, which contribute about 4% to the general fund, are projected to increase by $12.7 million, or nearly 14%. This growth is attributed to rising average home sale prices, despite a decrease in overall sales volume. The average home sale price rose from $253,000 in 2023 to approximately $265,000 in 2024.

As the city prepares to implement this budget, the focus will be on leveraging these revenue increases to support community needs and enhance city services, ensuring that the growth translates into tangible benefits for Baltimore residents.