How Your Property Taxes Fund City Services

Property (Ad Valorem) taxes are taxes on real estate(land and buildings). Local taxing authorities, such as municipalities, county governments, and school districts, rely on them because they are a revenue source that funds essential services including police, fire protection, roads, parks, libraries, and schools.

Property owners pay property taxes. Renters typically do not pay them directly, but property taxes can affect rent prices.

The city’s general fund departments are all funded by property taxes, which include Police, Parks & Recreation, Fire & Rescue, Public Works, Administration (such as City Management, Finance, Public Communications, and the City Attorney’s Office), Planning & Development, and the Library System. Property taxes remain the largest source of funding for the city’s general fund.

The total property tax bill for a property is determined by the taxable value and millage rate of each taxing authority. The taxable value is the final amount on which property taxes are calculated, which includes any applicable property exemptions.

The millage rate is the number used to calculate a final tax bill from each taxing authority, where one mill equals $1 in tax for every $1,000 of a property’s taxable value (i.e. the city’s millage rate is 5.8850, which would result in the city’s portion of a property tax bill being $588.50 for a property with a taxable value of $100,000).

Each taxing authority (usually elected governing bodies) approves their own millage rate during the annual budget process. The millage rate is determined by fiscal need, to fund costs for public services including salaries and personnel benefits, program expenses, and funding for capital projects.

The city anticipates receiving approximately $109,177,090 in property taxes for Fiscal Year 2026, of which approximately 30% is from homestead (primary residence) properties.

Additional information on property taxes is available by visiting MyClearwater.com/Budget or through the city’s property tax portal at MyClearwater.com/PropertyTax.