Where Does Your Money Go? Unveiling the Truth Behind Canton's Taxpayer Dollars

SIGN UP FOR OUR NEWSLETTER

Where Does Your Money Go? Unveiling the Truth Behind Canton's Taxpayer Dollars

Uncover the hidden costs and benefits of Canton's tax spending.

With the upcoming fiscal year starting on October 1st let's break down the Canton, Georgia 2026 budget. You should be able to easily understand where your tax dollars are spent and how the money comes in, without needing to be an accountant or finance expert.

Will you pay less this year in taxes? How much does your property value impact your property tax? Are the officials in Canton effectively utilizing tax revenue? No math needed, we did the work for you.

Short on time and just want the quick takeaways? No problem, skip tot he end for a summary of the major points. Enjoy.

Canton, Georgia FY 2026 Budget Summary

Key Highlights

- - Canton is cutting property taxes from 5.4 to 5.25 mills - the lowest rate in over 25 years 😀.
  - The city's total budget is $94.7 million, with the General Fund increasing from $27.8 million to $30.5 million.

Total Budget Breakdown

This chart summarizes how your tax money will be spent.

Canton, Georgia FY 2026 Budget Breakdown by Fund ($90.3 Million Total)

Canton's budget includes five main funds:

- - Water & Sewerage Fund: $36.4 million (largest portion for utilities)
  - General Fund: $30.5 million (daily city operations)
  - SPLOST Fund: $17.2 million (special local sales tax projects)
  - Impact Fee Fund: $5.0 million (new development fees)
  - Hotel Tax Fund: $1.2 million (tourism revenue)

Revenue Sources for General Fund

Let's review where the revenue will come from to pay for the areas of the budget highlighted above.

Canton, Georgia FY 2026 General Fund Revenue Sources ($7.5 Million Total)

The city gets money from several sources:

Fund Balance Use (49.9%): Using city savings - $3.7 million
- - Other Sources (21.7%): Various fees and revenues - $1.6 million
  - Property Tax (10.4%): Taxes on homes and businesses - $783,000
  - Indirect Cost Accounting (10.2%): Administrative costs - $764,000
  - Occupational & Alcohol Taxes (5.3%): Business licenses - $400,000
  - Franchise Fees (2.4%): Utility company fees - $182,000

What's New In Canton's 2026 Budget

Tax Changes:

Property tax rate decreased from 5.4 to 5.25 mills. This saves homeowners money on their property taxes.

New Jobs and Raises:

- - Adding 7 new city positions, including a Procurement Manager and Special Events Coordinator
  - All employees getting a 2.5% pay raise

Major Projects:

- Expanding water treatment plants
  - Building new parks and walking trails
  - Fixing and improving roads
  - Upgrading city buildings

Understanding Mills and Canton Property Taxes

For fiscal year 2026 Canton officials claim that homeowners will see a reduction in their city property tax. So, let's do a quick review of how your property tax is calculated.

What is a "Mill"?

A mill is the unit used to measure property tax rates. Here's how it works:

- - 1 mill = $1 tax per $1,000 of taxable property value
  - Canton's FY 2026 rate: 5.25 mills
  - This means $5.25 tax per $1,000 of taxable value
  - In Georgia, taxable value = 40% of fair market value

How Property Tax is Calculated

The calculation follows this simple formula:

1. 1. Fair Market Value × 40% = Taxable Value
  2. Taxable Value × Millage Rate = Property Tax Due

What Canton homeowners pay in property taxes

* encompasses city and county taxes.

Based on Cherokee County's official millage rates:

- - County Operations: 5.153 mills
  - School Operations: 16.450 mills
  - School Bond: 1.500 mills
  - Parks Bond: 0.260 mills
  - Canton City: 5.25 mills (FY 2026)
  - Total: ~28.6 mills

What unincorporated residents pay:

- - County Operations: 5.153 mills
  - School Operations: 16.450 mills
  - School Bond: 1.500 mills
  - Fire District: 2.888 mills
  - Parks Bond: 0.260 mills
  - Total: 26.251 mills

Average Canton Homeowner

Using an effective rate of about 1.09% and a median home price of around $500,000, the average Canton homeowner pays:

- - Annual property tax: ~$3,400-$3,700
  - Breakdown:
    - - Canton City: $1,050 (5.25 mills)
      - County: $1,030 (5.153 mills)
      - Schools: $3,590 (17.95 mills combined)
      - Parks: $52 (0.260 mills)

The Canton city portion ($1,050) in the above example is calculated as follows:

$500,000 × 40% = $200,000 taxable value
$200,000 × 0.00525 (5.25 mills) = $1,050 annual tax

City Property Tax Examples for Different Home Values

Now we will look at how the new mill reduction could impact how much in city property taxes you pay based on various home values in Canton.

Canton, GA Property Tax Comparison: Regular vs Senior Homeowners (FY 2026)

Regular Homeowners (FY 2026 - 5.25 Mills)

- - - $200,000 Starter Home: $420/year ($35/month)
    - $300,000 Mid-Range Home: $630/year ($52.50/month)
    - $400,000 Above Average Home: $840/year ($70/month)
    - $500,000 High-End Home: $1,050/year ($87.50/month)
    - $600,000 Luxury Home: $1,260/year ($105/month)
    - $800,000 Premium Home: $1,680/year ($140/month)

Senior Homeowners (Age 62+)

Canton offers an exceptional benefit - seniors get full property tax exemption on the first $280,000 of home value:

- - $200,000 Home: $0/year (full exemption)
  - $300,000 Home: $42/year (pays tax only on $20,000)
  - $400,000 Home: $252/year (pays tax only on $120,000)
  - $500,000 Home: $462/year (pays tax only on $220,000)
  - $600,000 Home: $672/year (pays tax only on $320,000)
  - $800,000 Home: $1,092/year (pays tax only on $520,000)

Senior savings: Up to $588 per year for most homeowners

* Note above are examples only and only include the Canton mill rate

2026 Budget Takeaways for Canton Residents

In conclusion, lets summarize why Canton residents should care about the 2026 city budget:

👍The Good News:

- - - Lower property taxes mean residents pay less
    - Canton has the lowest tax rate of full-service cities in Cherokee County
    - Seniors age 62+ get up to $280,000 in property tax exemptions
    - Major improvements coming to roads, parks, and utilities

👎Concerns:

- - - City is funding half of its budget increase from savings (fund balance)
    - Heavy reliance on reserves may not be sustainable long-term
    - After using $3.7 million in savings, Canton will only have about 4 months of emergency funds left 😰