Hobart City ratepayers face a 2.27% rise, even less than last year's 2.73%.
Neighbouring council Glenorchy is increasing rates by 3.5% and Clarence up by 4.82%.
Hobart Lord Mayor Anna Reynolds is satisfied the books are well balanced for next financial year.
"We've got modest rate increases and a forecast surplus of $500,000, so it is really good to be able to deliver this budget in an environment where there is surging inflation."
The budget includes a $72 million capital works programme which is a record spend on infrastructure and goes before councillors for finalisation on Monday.