Higher Garbage Fees and Potential Property Tax Increase Add to Cost of Living in New Orleans

The cost of living in New Orleans is becoming an increasingly important issue for residents as a higher sanitation fee takes effect and city leaders consider property-tax changes that could further increase household expenses in 2027.

Beginning October 1st, the city’s monthly residential sanitation fee increased from $24 to $32.25, adding $8.25 per month—or $99 annually—to household bills. The New Orleans City Council approved the increase in September, marking the first adjustment to the sanitation fee since 2011.

City Officials say the increase is necessary to put sanitation services on more stable financial footing. New Orleans projected spending approximately $62.5 million on sanitation services in 2026 while collecting about $37.7 million in sanitation fees, leaving an estimated $24.7 million funding gap.

The increased fee is part of a larger effort by the city to address its financial challenges while continuing to provide essential services. Qualifying low-income seniors can apply for a reduced sanitation charge.

But garbage collection is not the only potential increase residents are watching.

The city is also considering a property-tax millage roll forward for 2027. The initial proposal includes possible increases supporting the city’s general fund as well as police, fire protection, libraries, early childhood programs and parks. The proposal remains subject to change as the City Council considers its options.

To help residents understand what the changes could mean for them, the City of New Orleans launched an online property-tax calculator on October 1st. Homeowners can enter information for their individual property and examine the monthly and annual impact of different millage scenarios being considered by the council.

The potential roll forward is significant. According to the city’s public notice, the proposed increased millages could generate approximately $297.3 million in property-tax revenue next year, compared with roughly $255.1 million currently—an increase of about $42.3 million. A public hearing is scheduled for November 5th.

For New Orleans residents, however, the debate extends beyond government balance sheets.

An additional $99 annually for sanitation may appear modest when viewed alone, but combined with potentially higher property taxes and other household expenses, additional costs can create greater pressure on homeowners and renters alike. Property-tax increases can also affect renters indirectly when landlords face higher operating expenses.

As city leaders work to stabilize New Orleans’ finances and maintain essential services, one of the central questions heading into 2027 will be how those decisions affect household budgets.