Council tax bills in Bournemouth, Christchurch and Poole are set to rise by just under five per cent from April.
BCP Council is proposing an increase of 4.99 per cent after outlining its budget for the next year.
The council currently spends £356 million annually to deliver public services to 400,000 residents.
It says rising demand for council services, together with cost increases, are expected to add significantly to the cost of running services next year.
This include increases to the National Living Wage and employer National Insurance contributions which will add around £11 million to the 2025/26 budget.
While the government has provided some extra funding to cover the national insurance contributions where the council is the employer, it is currently £1.9m short of the actual cost.
The proposals will now undergo the council’s scrutiny process.
Council Leader, Millie Earl, said: “Like all councils, we are facing challenges as demand for our services, especially adult social care and children’s services, increases dramatically pressures on our budget increase after years of austerity, rising inflation and increasing costs.
“We have worked hard to put forward a balanced budget that provides essential services to support the most vulnerable in our society, keeps our communities clean and safe and encourages our towns to thrive and flourish.
“We have made good progress in finding savings and changing how we work to get value for money for our residents while maintaining the council’s financial health and sustainability.”