Residents in Elon may soon see an increase in their property taxes from 35 cents to 40 cents as town officials work through the upcoming budget. 

Town Manager Richard Roedner has proposed a 5-cent increase in the property tax rate as part of the draft budget for the 2026 fiscal year. It comes as officials face rising costs including the town’s waste and water operations.

Roedner said the increase is not due to new or unnecessary spending, but rather the growing costs of maintaining essential services. 

“Like everybody’s household, our costs go up every year," Roedner said. “We buy fuel, we pay our employees and health insurance goes up every year.” 

Elon Mayor Emily Sharpe said that the town has not raised its tax rate since 2017. 

Personnel costs alone have increased for the last nine years, at the same time, revenue sources such as sales tax have slowed significantly. Growing by less than 1% in the past year compared to the 11% increase they saw several years ago, according to town officials. 

“Costs are not going down,” Sharpe said. “We aren’t doing anything frivolous. This is just operations to keep the town running.” 

If approved, the additional funding would go toward basic operations, including public safety, infrastructure and town services. Officials say that without the increase, the town could face difficult decisions such as cutting programs, reducing staff or limiting resources for first responders.

Roedner stressed that those services are what define the community and require consistent funding. He also added that many of Elon’s services go beyond basic expectations.

“As a small community, we’ll always be able to have that personal touch,” Roedner said. “We have police officers who drop in on some of our elderly residents to see how they’re doing. You’re not going to get that in a larger community.”

Roedner said the town has staff who check on unusually high water bills and public work crews who assist those who cannot move their trash bins.

“That’s a level of service we choose to provide,” Roedner said. 

The proposal is still under review. The council is expected to vote on the budget in early June after a series of workshops and a public hearing scheduled for May.

Residents will have the opportunity to share their input before any final decision is made.

“Taxes are not just a fee for service,” Sharpe said. “They are investments in your community. It's investments to make our town better. When we make our town better, we also increase the value of our homes and increase the quality of life for everyone living here.”

If approved, the new tax rate would take effect on July 1st, 2026, in the new fiscal year.