BETHLEHEM, Pa. — Bethlehem property owners could pay more in city taxes next year under Mayor J. William Reynolds’ proposed 2027 budget, which calls for a property tax increase of nearly 3%.
Reynolds presented the spending plan Friday morning at his annual budget address, held at ArtsQuest’s new Creative Factory. The mayor also said recycling fees will increase.
During the address, Reynolds pointed to park improvements completed this year, new staffing in the city’s fire department and EMS, and continued investment in the Bethlehem Police Department.
First Tax Hike Since 2024
If approved, it would be the city’s first property tax increase in three years. In 2024, City Council approved a 2.6% hike to pay for four additional paramedics. Before that, the last increase was a 5% hike in 2021.
Reynolds held the line on taxes in both 2025 and 2026. Last year’s budget of more than $112 million included no tax increase, large payments toward city debt and no new capital borrowing.
Under current rates, Bethlehem’s real estate tax is 19.64 mills in the Northampton County portion of the city and 6.21 mills in the Lehigh County portion.
Emergency Services a Growing Priority
Funding for first responders was a major theme during last year’s budget debate. When the 2026 budget passed, Reynolds committed to a full study of the city’s Fire and EMS equipment and efficiency. Councilwoman Colleen Laird said then that she would support a tax increase to fund emergency services once residents had time to weigh in.
What Happens Next
City Council will review the proposed budget during public hearings in the coming weeks. A final vote is expected in December. Residents can share comments at council meetings.
Stay with us for updates as the budget moves through City Council.
