The Peru Gazette

Albany, July 15, 2026 – The 2027 property tax levy growth will be capped at 2% for local governments that operate on a calendar-based fiscal year, according to data released today by State Comptroller Thomas P. DiNapoli. This figure affects tax cap calculations for all counties, towns and fire districts, as well as 44 cities and 13 villages.

“For the sixth consecutive year, the allowable tax levy growth will be limited to 2%,” DiNapoli said. “Local governments are tasked with the difficult challenge of delivering essential services efficiently while managing higher costs of goods and services, as well as the persistent threat of destabilizing federal actions. My office offers technical assistance for those that need it and provides transparency to the public so they understand the fiscal pressures facing local governments.”

In accordance with state law, DiNapoli’s office calculated the 2027 inflation factor at 3.13% for those local governments with a calendar fiscal year, above the 2% allowable levy increase.

The tax cap, which first applied to local governments (excluding New York City) and school districts in 2012, limits annual tax levy increases to the lesser of the inflation factor or 2% with certain exceptions. The law includes a provision that allows municipalities to override the cap.

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Chart
Allowable Tax Levy Growth Factors for Local Governments