A 58% property tax increase is included with Millvale’s $4.93 million proposed budget for 2026.

As proposed, the borough’s property tax rate would increase from 9.5 mills to 15 mills, council President James Machajewski said.

For a property at Millvale’s median value of $37,900, the annual borough property tax bill would increase by about $208, from $360 to $568.

The increase is necessary, Machajewski said, because of “increased costs across the board” and for the borough to “get caught up” after not increasing the tax rate in many years.

He noted Millvale had lowered its tax rate for 2021 to give residents a break in the wake of covid.

“We’re trying to catch back up,” he said. “We don’t want to fall behind any more.”

The proposed budget shows a 71% increase in the borough’s current real estate tax collection, from $725,000 in 2025 to about $1.24 million for 2026. Machajewski said that is from a combination of tax increase and an increase in the collection rate.

Council approved advertising the budget and tax levy during a special meeting Tuesday, Dec. 16. Councilmembers Katie Dembowski and Emily Potoczny were absent.

Council also approved advertising a new real estate tax relief ordinance for senior citizens. While full details on the program were not immediately available, Machajewski said it would provide a 30% discount and carry residency, age and income requirements.

With the tax rate proposed for 2026, a 30% discount would lower the bill on a property at the $37,900 median value by about $170, to $398. That lowers the increase from about 58% to 11%.

As proposed, the proposed $4.93 million 2026 budget represents a 15.2% increase in spending from the borough’s final budget for 2025.

The budget is available on the borough’s website at millvalepa.com.

Council is scheduled to vote on the budget, tax rate and the senior tax relief program during a special meeting beginning at 6 p.m. Dec. 30 in the borough office, 501 Lincoln Ave.