With health care expenses, salaries, and retirement contributions on the rise, municipalities in Erie County are feeling the pinch as they prepare their budgets for 2026.
Inflation and soaring contract costs are proving to be tough obstacles for local governments trying to adhere to the state’s tax cap, which places limits on annual property tax increases.
Interim budgets from Cheektowaga, Hamburg, and Tonawanda are all over this cap. In contrast, some other regions have managed to absorb these cost hikes.
The Town Commission is set to hold a public hearing and is required to adopt a finalized budget by November 20.
Here’s a look at the spending plans from some of Buffalo’s larger suburbs.
Amherst
Amherst has proposed a preliminary budget for 2026 that reflects a 2.5% rise in overall spending, bringing it to $146 million. Notably, general fund expenditures alone are jumping by 6.23%.
Despite this, the town anticipates a property tax collection increase of only 1.9%, keeping it within state limits. With the overall property value rising by around $83 million, homeowners in Amherst with properties assessed at $341,000 can expect a slight dip in their tax bill—down 32 cents to $2,021.86.
This total encompasses various taxes like fire and lighting taxes.
Supervisor Brian Krupa pointed out that new development in the area would continue to promote growth, benefiting existing homeowners. He is optimistic about ongoing projects like Costco and Dick’s House of Sports.
“If we can boost our tax base, we can enhance services, right?” he stated.
Cheektowaga
Cheektowaga’s Town Supervisor Brian Nowak mentioned that the 2026 budget proposal amounts to $116 million, a 5.45% increase, pushing the town’s tax bill up by $5.9 million (7.6%), surpassing the state tax cap.
For a homeowner with a property valued at $155,400, the new budget predicts a tax bill of $1,984—an increase of $149 (8.12%).
Nowak described this proposal as a “no-frills” budget, primarily influenced by rising payroll costs, which account for roughly 70% of expenditures.
However, the chances of the budget being fully approved seem slim. Earlier this year, a proposal to override the tax cap was rejected by the Republican majority on the City Council. Plans are underway, though, as Nowak and a fellow Democratic committee member recently introduced another resolution to exceed that cap. A five-member approval from the seven board members would be necessary.
The board recently met to discuss potential amendments before a public hearing scheduled for October 28.
Clarence
In Clarence, the interim budget for 2026 indicates a 2.3% expenditure increase, bringing it to $30.7 million.
The combined tax bill from general and highway funds is anticipated to rise by 2.2% but will still fall within the state tax cap, according to Supervisor Patrick Casilio.
The tax rate per $1,000 of valuation for these funds will go up by a mere 0.68%.
Homeowners in Clarence with properties assessed at $482,274 will pay about $4.49 more on their $667 town tax bill in 2026, excluding zoning taxes.
Clarence’s total asset value rose by nearly $80 million, just over 1%, which helps distribute the tax burden more evenly.
Though the town lacks a police station or much of a trash service infrastructure, it still provides essential services. Casilio highlighted the budget includes funding for more school resource officers and plans to renovate the Old Highway building into its first indoor recreation center.
“So, even if we’re under the tax cap, we’re proactively moving forward with projects that directly benefit the community,” he remarked.
Grand Island
The Grand Island supervisor’s office has refrained from releasing the 2026 interim budget, noting it’s not yet finalized. A budget workshop is scheduled for Tuesday.
Hamburg
Hamburg’s 2026 budget proposal outlines $60.8 million in total spending with a projected 20% increase in tax rates. The tax levy would rise from $31.6 million to $38 million compared to 2025.
Much of this increase—around $4 million—stems from establishing a new garbage district. Instead of arranging their own trash collection, residents will see this service contracted out through Modern Disposal, costing each household approximately $240 annually, added to their property taxes.
The remaining tax hike arises from increased expenses like wages, benefits, and utilities.
For those living outside the town, the proposed tax rate is set at $13.03 per $1,000 of assessed value, which reflects a 7.46% increase. This means a $90 tax increase for a home valued at $100,000.
Currently, the budget exceeds the state tax cap, and a public hearing is scheduled to approve an override if needed. Supervisor Kathy Rybczynski mentioned that while staffing cuts are included in the proposal, all town services would still be maintained.
“We strive to serve our residents at the lowest tax rate possible,” she added.
Lancaster
Under Director Robert Leary, Lancaster’s 2026 budget proposal projects total expenditures of $43.86 million, with tax revenues anticipated to increase by 2.8% from property taxes—about $739,974—keeping it under the tax threshold.
Approximately $13 million is projected to come from fees and grants, while fund balances and reserves will contribute roughly $3.7 million.
If you have a home in Lancaster assessed at $400,000, your estimated tax bill could be around $2,831, an increase of $56 (2.01%), bringing the tax rate to $6.60.
Leary noted the rise was primarily due to improved health outcomes.
This includes long-term care and retirement benefits plus costs associated with the town’s garbage collection contract with Modern Disposal.
“You really can’t control those costs,” he commented.
Towns are also adjusting by relying more on subsidies and “streamlining administrative functions.” Leary mentioned the new budget is part of a long-term fiscal strategy aimed at sustaining crucial services while fostering sustainable growth.
Orchard Park
The 2026 budget proposal for Orchard Park suggests a 2.99% increase in property taxes, translating to nearly $580,000, totaling $19.9 million. This rise keeps the town compliant with the state tax cap, as Supervisor Eugene Meiszulzak explained.
He shared some hopes for development surrounding the new Buffalo Bills stadium, stating this could boost revenue for the town. They’re currently updating comprehensive plans to entice investments in the area.
“By revising it and showcasing beneficial changes to developers, we hope some may invest in Orchard Park. But we’re not counting on it just yet,” he expressed.
City of Tonawanda
Mayor John White indicated a plan to keep utilizing the city’s fund balance to minimize new property taxes for Tonawanda residents.
Overall spending is set to rise by 5.8% to $30.9 million due to increased costs of city services.
White’s proposed 2026 budget includes $3.4 million from the $15 million fund balance.
“We’re in good shape,” White remarked. “But I see challenges coming, and I don’t want to burden our residents with higher taxes while keeping that $15 million in our general fund.”
The budget would lift taxes by 2.76%, remaining below the state cap. The tax rate for properties is moving from $12.88 to $13.17.
An average home, valued at $180,000 last year, will likely incur an additional $52, raising its city tax to $2,371.
Town of Tonawanda
This town’s proposed preliminary 2026 budget projects tax hikes that will exceed the state tax cap for a second consecutive year.
In 2025, the tax levy had already gone up by 5.58%, causing typical homeowners to experience a $109 increase in their property taxes this year.
