New tax and budget agreement evens out impact across property types, limiting impact on renters, and lowers levy increase to 5.85%
Today, Providence City Council President Rachel Miller and Finance Chairwoman Helen Anthony announced that they have reached an agreement with Mayor Brett Smiley on a revised Fiscal Year 2026 budget that corrects major inequities in the proposed tax structure, ensuring a fairer distribution of the city’s property tax collection.
The original proposal, introduced in April, would have had an uneven impact, raising some homeowners’ tax bills much more than others compared to last year—with 2–5 unit homes facing the steepest increases. Owner-occupied duplexes and triple-deckers, home to tens of thousands of residents would have seen a 16% average increase in annual tax bills citywide while single-family properties would have seen a much smaller 4% average increase, and some large buildings and commercial properties were slated to receive tax cuts.
This uneven distribution would have overburdened working families by balancing the budget on the backs of “mom and pop” landlords and their tenants at a time when Providence is consistently ranked among the least-affordable cities in the country for renters.
Councilors pushed back—and secured a more balanced approach.
Under the negotiated agreement, councilors were able to dramatically reduce this burden. Now, both owner-occupied single-family homes and owner-occupied 2–5 unit homes will see equal, modest average increases of just 6%. The change from a 16% impact over last year’s tax bill to just a 6% increase will save these small landlords—and their tenants—over $400 on average compared to the original proposal.
By aligning the average tax bill increases for owner-occupied single-family and owner-occupied 2-5 unit properties, this budget will ensure that the collective responsibility of funding city schools, parks, essential services, and the city workforce is more evenly shared. In this amended budget, no one group is punished, nor favored over any other.
“This is a hard budget year. Revaluations are sky high, and Providence is making up for decades of underfunding schools in just one year,” said Council President Rachel Miller. “But that doesn’t mean working families should carry the burden. These revisions make the system fairer, protecting homeowners, renters, and small local landlords. By evening out the impact, we are preventing displacement and working to keep Providence affordable—for all of us.”
The final rates and negotiated budget keep the total property tax levy increase to just 5.85%, well below the 8% cap authorized by the state legislature. The budget reflects a shared commitment by the Council and Mayor to fund core services and public education while mitigating harm to those least able to absorb sharp increases.
Below are the final negotiated tax rates by class:
| Property Class | Mayor’s Proposed Rate | Average Impact Over FY25 Tax Bill | Rate in Council Agreement | Average Impact Over FY25 Tax Bill |
| Owner Occupied: Single | 8.25 | 4% | 8.40 | 6% |
| Owner Occupied: 2-5 Units | 8.25 | 16% | 7.55 | 6% |
| Non-owner Occupied: Single | 14.40 | 5% | 14.60 | 6% |
| Non-owner Occupied: 2-5 Units | 14.40 | 16% | 14.00 | 13% |
| 6 – 10 Units | 24.50 | -5% | 26.00 | 1% |
| 11+ Units | 27.75 | 1% | 28.50 | 4% |
| Commercial | 28.80 | -2% | 29.20 | 0% |
This year’s budget was especially challenging: a court-mandated increase in school funding, a state-mandated revaluation that dramatically raised property assessments, and rising costs across city operations. But councilors entered this difficult budget process determined to negotiate a budget that protects essential services and distributes tax impacts fairly. This goal was accomplished in the agreement secured today by councilors in negotiations with the mayor.
In addition to correcting the tax rate inequities, the Council also successfully preserved the Sustainability Policy Associate position, which had been eliminated in the mayor’s proposed budget. Councilors heard from dozens of residents and environmental advocates who voiced concerns about the cut and the potential impact of downsizing the Sustainability Department on Providence’s efforts to address climate change. After hearing from constituents, councilors ensured the position was restored in the final agreement.
Finally, the Council heard significant concern about new fees on bulky trash pickup in the Waste Management contract. Responding to concerns that the $20-35 per-item collection fee on furniture and large appliances would lead to more illegal dumping and create public health and environmental hazards in already overburdened neighborhoods, councilors amended the budget to cover the fees. Because of this change, residents will not have to pay out of pocket when disposing of large items.
“We heard residents loud and clear: protect city services and limit the impact of increased taxes, especially on those who can least afford it,” said Finance Chairwoman Helen Anthony. “Our negotiated agreement with Mayor Smiley does just that.”
On Monday, June 30 at 5:30 PM in the City Council Chambers, the Committee on Finance will hold a public hearing on the amended budget. Spanish translation and, for the first time, free childcare will be provided for those who need it. Residents can also submit written testimony by emailing cityclerk@providenceri.gov. The budget will then be advanced out of committee, after which it will require two passages by the full City Council. The first passage is tentatively scheduled for July 7, with a second vote on July 14.
