The 2026 City of Hermitage budget includes, for the first time in 35 years, a real estate tax increase. The increase, which applies only to the city portion, is from 5 mills to 7 mills. County and school district taxes are not affected by this change. Real estate tax is calculated on the assessed value, not the appraised value, of the property and the assessed value of the average Hermitage residential property is approximately $30,000. Therefore, a 2-mill real estate tax increase equates to an increase of $5 per month, or $60 per year.
The Hermitage Board of Commissioners have directed that the revenue derived from the increase will be allocated solely to street paving in 2026 and street paving and infrastructure improvements going forward.