A tax rate increase occurs when municipalities raise property tax rates to generate additional revenue, typically to fund increased expenditures or offset declining non-tax revenues. Tax rate increases are expressed as percentage changes—a '3% tax increase' means rates increase by 3% over the prior year. However, individual property tax changes also depend on assessment changes; properties whose assessments rise faster than average may see tax increases exceeding the rate increase. Tax rate increases are politically sensitive decisions that councils make during budget deliberations. Factors driving rate increases include inflation, new service demands, infrastructure needs, and declining grants. Municipalities communicate rate increases alongside context about what the revenue funds and how rates compare to inflation and comparable communities.