Wu's administration filed her proposed home-rule petition to the council on Wednesday following a months-long debate with powerful business interests and state Senate President Karen Spilka regarding how to balance the city's $4.6 billion budget in the face of declining commercial real estate values.

Some 71.1 percent of Boston's operating revenue comes from property taxes, of which about two-thirds comes from taxes on commercial properties. With commercial valuations declining, due in part to the rise of hybrid and remote work following the pandemic, officials had feared a substantial spike in residential taxes.

Under the new proposal, the average single-family home tax bill in Boston would increase by about 9 percent year-over-year. An owner-occupied single-family home valued at $838,000 in the most recent fiscal year would see its quarterly tax bill increase from $1,380.43 to $1,628.91 in January and April, according to analysis of city data by the Boston Municipal Research Bureau.

Commercial tax rates, currently capped at 175 percent of the residential rate, would be temporarily increased to a 181.5 percent before stepping back to 180 percent in fiscal 2026 and 178 percent in fiscal 2027. It would then drop back to 175 percent.

The petition ultimately needs approval from the state Legislature. The state Department of Revenue also has to validate Boston's property valuations before the new year, in time for the city to mail tax bills to residents by January. If no action is taken, residential taxes on the average single-family home in Boston would increase by about 14 percent per year.