Sheffield City councillors agreed to the maximum council tax increase in the annual budget meeting on Wednesday.
Councillor Zahira Naz, the council’s finance spokesperson said: “For 14 years local government has been battered by austerity.”
“Councillors have had to make incredibly difficult decisions.”
Councillor Naz said frontline services have been protected and the council will ensure there is protection for the most vulnerable.
The move means £301m will be received this year via council tax, £17m more than the figure in 2024/25.
Council Leader Tom Hunt said: “I am crystal clear that our cities better days are ahead of us.”
The new council tax rates households will pay for 2025/26:
Band A: £1,352.66
Band B: £1,578.10
Band C: £1,803.55
Band D: £2,028.99
Band E: £2,479.88
Band F: £2,930.76
Band G: £3,381.65
Band H: £4,057.98