Nashville adopts FY2027 budget, with grocery-tax cut set for fall
Nashville TN – Metro Council has approved FY2027, a $3.85 billion operating budget that begins July 1, adds housing funding, and puts the grocery-tax reduction on a fall timeline.
Metro Nashville‘s FY2027 operating budget is final. Metro Council approved the ordinance on June 16, and the fiscal year runs from July 1, 2026, through June 30, 2027. The city’s budget guide puts tax-supported spending at $3,848,620,900, or about $3.85 billion.
The biggest near-term tax change is the grocery-tax cut. WPLN reported that the reduction takes effect in the fall, so residents should not expect a lower grocery bill on July 1 receipts. City leaders say the cut is part of the broader affordability package behind the final budget.
Housing is the clearest spending priority. The mayor’s office says the adopted budget makes the city’s largest local housing investment yet and gives the Barnes Affordable Housing Trust Fund its largest General Fund investment ever. It also adds an Affordable Housing Loan Program aimed at projects that still need financing to move forward.
The budget also keeps schools, employee pay, public health, and resident services in focus. Officials say it supports schools, higher pay for Metro workers, and key day-to-day services. For households, businesses, and workers, the real test now is implementation: when the grocery-tax cut shows up, how quickly housing dollars move, and whether Metro can hold service levels through FY2027.
Sources
- Nashville Mayor Freddie O’Connell budget passage release
- Nashville Legistar FY2027 Operating Budget Ordinance
- WPLN News: final FY2027 Nashville budget report
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