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- The city of Peoria is proposing an increase in the total amount of property taxes levied.
- Property tax rates will not increase in Peoria.
PEORIA — The city of Peoria is once again proposing to raise its total property tax levy, meaning some homeowners could pay more on their property tax bills in 2026.
The property tax rate in the city is proposed to stay flat this year, as it did last year, but city staff has put forward a tax levy proposal that would see the city draw in tax revenue based on a roughly 6.5% increase in equalized assessed values on homes.
What that means for taxpayers is that if the assessed value on your home went up, your property tax bill will also increase. Assessed values can also go up if new businesses and new homes are built.
The Peoria City Council did not vote on implementing the levy increase on Tuesday night, but did it unanimously vote to accept the proposal from city staff. Accepting that proposal is not binding, and the council will deliberate the tax levy and hold a truth in taxation hearing.
The overall tax levy in Peoria would increase to $39 million in 2026 from $36.8 million last year. Those figures without bonds included are $34.4 million in 2026, up from $32.2 million in 2025.
The city would take in about $27.8 million of that levy, and the library system would take in about $11.1 million. Police and fire pensions receive about $19.8 million levied by the city.
The rate levied in Peoria is going down slightly from 1.5381 in 2025 to 1.5284 in 2026. Without bonds included, the rates are flat at 1.3483.
That rate means a property owner will pay about $1.52 for every $100 of equalized assessed value on their homes in property taxes to the city of Peoria and the library.
A majority of the property taxes levied in the city of Peoria go toward making public safety pension payments, which rose roughly $3 million between 2025 and 2026 for the city. Public safety pensions rose from $36.2 million to $39.3 million in 2026. Pension payments will rise again to $41.3 million in 2027.
The bonds that are included on the tax bills are deductible for taxpayers for tax bills up to $40,000.
City Councilmember Denis Cyr, who represents the 5th District, asked Peoria Finance Director Kyle Cratty why the equalized assessed value on homes was rising faster than the rate of normal inflation.
Cratty said this was generally due to the purchase price of properties rising faster than the rate of normal inflation.
At-large councilmember Mike Vespa asked if EAV should be seen as a leading indicator and said he expected to see interest rate cuts and the housing market to go full-speed ahead.
Cratty said that home sales were a leading indicator of how the county would view home assessment values and to that end, said EAV is then a lagging indicator of the previous year’s growth.
Last year, the City Council narrowly approved in a 6-5 vote the city staff’s proposal to increase the overall tax levy in the city. There was no clear indication given Tuesday night if this year will see the same type of debate and narrow vote about the tax levy when it is voted on.
