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Let's Talk Budget: 2026 Property Taxes

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Tax Letters Arrived

A couple of years ago, I blogged about a tax chat with our Finance Director, Schmiedicke. We discussed the multiple property tax levies jurisdictions the City is charged with collecting, the City's mill rate calculation, and other items that impact the final tax bill. For a review of the old blog and definitions, click here.

I hope you find this blog useful and that it provides clarity on how to interpret the property tax bill.

If, after reviewing this blog, you have any questions, please email me, and I will address them with the support of our outstanding professional staff.

I am looking forward to a repeat of a relaxed, low-key Thanksgiving and disconnecting, prioritizing self-care, spending time with my family and close friends, and welcoming my kiddo and his dog for a few days' stay.

Have a wonderful holiday season. Enjoy your blessings! 

Peace! 

Yannette Figueroa Cole

Events, Meetings & News

In summary, the City of Madison acts as the tax collector for the following taxing jurisdictions:

  • DANE COUNTY
  • MATC
  • CITY OF MADISON
  • MADISON SCHOOL

The tax bill contains credits to learn more click on the following links:

In addition, contains other assessments such as:

  • SEWER LATERAL
  • WATER LATERAL
  • STREET IMPROVEMENT
  • DELINQUENT MUNICIPAL SERVICES BILL

The online assessment page also includes details on property, sales, legal description, and school referendums. To gain access to your tax bill online, go to https://www.cityofmadison.com/assessor/property/

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Tax Bill Calculation

Property tax bills are calculated using the assessed value of a property multiplied by the tax rate. The tax rate is calculated by dividing the property tax levies approved by the governing bodies of the taxing jurisdictions within the City (school district, City of Madison, Dane County, Madison College) by the total taxable assessed value within the City.

The highest increase this year is due to the School referendums passed last year. MMSD provided the following information regarding referral of questions and a summary of the district's 2025-2026 budget:

  • MMSD uses Let's Talk to receive input from the community, and the link is https://www.madison.k12.wi.us/contact-us/lets-talk. At the link, select the tile labeled "Planning, Budget, Purchasing & Accounting".
  • The Madison Metropolitan School District (MMSD) Board of Education has approved the district's 2025–26 budget, which outlines how it will use its resources to support students, staff, and families in the year ahead.
  • The approved budget totals $668 million, with $577.1 million dedicated to day-to-day school operations. This year's plan reflects a 10 percent increase in both revenue and expenses compared to last year, driven by ongoing investments in staffing, student programs, and school facilities.
  • The district's total property tax levy (the amount collected from property taxes) will increase by about 20 percent, meaning the tax rate will increase by about 96 cents per $1,000 of property value. State aid to MMSD will decrease by about 19.5%. Still, the state will allow the district to receive an additional $325 per student under the revenue limit, providing more flexibility in the overall budget.
  • The 2025–26 budget keeps MMSD on a firm financial footing, with a projected general fund balance of $78.8 million, which falls within the Board's targeted range of 12 to 18 percent. The district continues to hold top bond ratings of AA+ and SP-1+, reflecting its fiscal stability and responsible use of taxpayer dollars.
  • More information, including the full 2025–26 Budget Book, is available on the MMSD website.
tax calc

Tax Credits:

State Statute 79.10 – Plays a role too

Click here to learn more about the Wisconsin state property tax relief. This is the School Levy Tax Credit, provided by the State of Wisconsin. It is calculated by dividing the three-year average of levies for schools within a municipality by the three-year average of statewide school tax levies.  That total amount is then divided by the municipality's total assessed value to determine the tax credit rate.  This rate is multiplied by the assessed value of each property to calculate the credit amount for that property. In other words, the higher the assessed value of a property, the greater the amount of the credit for that property.

The state budget did not increase the school levy tax credit for this tax year. As such, the rate calculation was lower than last year and did not keep pace with either the increase in assessed values or the increase in the MMSD levy. 

So, it is a contributor to the increase in taxes under the "Madison Schools" item on the tax bill.

credit sch levy

School levy tax credit rate for 2024 = 1.8718 mills; School levy tax credit rate for 2025 = 1.7285 mills. This is a 7.65% reduction in the credit as expressed as a rate. So, for the average-value home, the credit on 2024 tax bills was $855.97; for 2025 tax bills, it was $831.93.

 

Madison 2026 Budget Calculation

The assessment value for city properties is calculated at a 97.43 percent rate of the estimated market rate not at a 100%.

The Average Home Assessed Value is $481,300 (Estimated Market Rate: $493,996)

The City Tax Rate is 0.007003

  • The tax bill for the average assessed home is $3,3371 (Gross amount before First Dollar Credit, Lottery & Gaming Credit and special assessments.
  • Special Assessments are added to the Net Tax Calculation when applicable
tax credit

District 10 area above and below Average Home Assessed Value for Single Family home vs Apartments – GROSS TAX VALUE

Average Home Assessed Value:

AAV 481

Below Average Home Assessed Value:

AAV below

Above Average Home Assessed Value:

AAV above

Above Average Home Assessed Value - Apartment:

AAV apartment

Property Tax Assistance for Seniors

The City's Property Tax Assistance for Seniors Program is available to pay all or a portion of a homeowner's property taxes. All forms needed to apply can be found here. The program is income restricted.

Program Details

Assessors Website:

Go to: https://www.cityofmadison.com/assessor/property/

Enter your address and hit "Submit."

  1. Property details
  2. Pay property taxes online
  3. Sales for the address area

  4. Net Tax amount calculation plus special assessments

    assess property details
  1. Tax Details
  2. School Levy Tax Credit
  3. City of Madison tax
  4. Special Assessments
  5. Payment Installments option
assess details
  1. Tax Referenda
  2. Referenda Details
assess speciai
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District 10 - Alder Figueroa Cole

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Alder Yannette Figueroa Cole

District 10
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