CHATTANOOGA — The Chattanooga City Council gave final approval to the city budget on June 23, 2026, for the fiscal year beginning July 1, 2026. The budget maintains a property tax rate of 1.93, unchanged from the previous year.

Officials stated that the city maintained services without a tax increase through a citywide initiative to identify cost savings and hold the line on expenses. Mayor Tim Kelly said, "Last year, we asked Chattanoogans to invest in the essential services that impact their lives: police, fire, paving, affordable housing, and technology to address traffic congestion."

Kelly added, "This year's budget is about providing a return on that investment." The budget includes a three percent pay increase for city employees, including police and fire personnel. It allocates $10 million to fill potholes and improve city roads, and also funds a new litter pick-up crew.

Investments in early childhood education and community centers are part of the new budget. City Council Chair Jeff Davis said, "The City Council is proud to unanimously support this budget, because it prioritizes funding for essential services that our residents depend on."

Davis also said, "I want to thank Mayor Kelly's administration for collaborating with the City Council over the past several months to develop the final budget ordinances that were passed on final reading today." The Chattanooga Administration stated that the city's property tax rate is lower than rates in Knoxville, Nashville, and Memphis. The administration also noted that the tax burden per resident in Chattanooga is lower than in Nashville and Knoxville.