ARLINGTON, Texas — Facing financial challenges, the city of Arlington proposed a property tax rate that would cause the average resident’s bill to go up.

The proposed budget included a three-cent tax rate hike, bringing the property tax rate to $0.6298 per $100 in valuation. The change will cost the average homeowner about $59 annually. The higher tax rate plus increased fees could cost the average homeowner about $147 more per year, the city said.

Arlington is grappling with a $25 million shortfall in the fiscal year 2026 budget. The city attributes the gap to lagging property values, lower-than-expected sales tax revenue and changes to Tarrant County’s appraisal process.

“You have a city that’s going through a financial challenge, really through no creation of our own, but through st

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