Olathe’s proposed 2025 budget would keep the municipal property tax rate flat, but the average homeowner can still expect to see the amount they owe the city go up next year as property values continue to climb.
On Tuesday, the Olathe City Council convened its first budget workshop for 2025, commencing a months-long approval process that will conclude this fall with public hearings and a vote.
Find Olathe’s full proposed budget here.
The breakdown: How might it affect your bill in 2025?
For 2025, Olathe appears likely to keep the city’s property tax rate of 23.356 mills flat, which includes levies for the Olathe Public Library and the general fund. That’s still one of the lowest property tax rates among all cities in the county.
However, as Johnson County home values continue their upward trend year after year, property owners in Olathe should expect to pay more next year on their annual property tax bill despite no increase in the actual tax rate.
The property tax rate — also called the mill levy rate — determines how much a property owner will pay in taxes to the city based on their property’s assessed value.
According to real estate statistics maintained by the Johnson County Appraiser’s Office, Olathe’s average residential property value is $407,350, up about 7.3%.
To calculate what your actual tax bill to the city would be if this budget is approved, multiply the value of your home by .115 (the residential assessment rate). From there, take that number and divide it by 1,000. Then, multiply the result by the proposed mill levy rate of 23.356 mills.
For the average home in Olathe, that means about $1,094 in property taxes owed to the city next year.
In comparison, last year, the city’s average homeowner paid about $1,019 in property tax to Olathe.
Remember: Your total annual property tax bill will also include rates set by other taxing authorities, including Johnson County and the school district in which you reside.
Olathe proposes $609M budget for 2025
- The proposed budget is about $609.3 million, which includes revenues from property tax, sales tax, utility funds and other sources.
- That budget is about 6.6%, or $38 million, more than what was approved for 2024.
- This increase means the budget, if adopted as presented, will not be revenue neutral as defined by state statute, that is bringing in the exact same amount of revenue as the previous year. That triggers a few extra steps for adoption, including a public hearing.
Olathe’s next steps:
- Olathe will have a handful of other budget workshops throughout the next several weeks.
- Then, there will be two public hearings tied to the 2025 budget, likely on Aug. 27.
- Under state law, Olathe will have to adopt the budget for the next year no later than Oct. 1.
- Currently, the city expects to adopt a budget for 2025 during the city council’s Sept. 3 meeting.
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