Stamford residents will not pay any more tax to the town council next year.
The council voted not to increase its precept at a meeting on Tuesday.
The precept is the portion of South Kesteven District Council tax the town council asks for to pay for things like cemetery maintenance and events.
Coun Jean Bevan (Con) explained that although the town council expected to spend more during the next financial year, the cost would be offset by an increase in the number of taxpayers in Stamford.
She also outlined a number of areas the council had made a profit and a loss in during 2012/13.
Coun Bevan said income from town hall letting fees had gone up because more people were hiring the venue, in part because of the ongoing refurbishment.
But income from events on The Meadows had gone down, mainly because the weather had forced events like The Riverside Festival to be cancelled.
Coun Bevan said the biggest increase in spending over the last year was on town hall salaries.
This was because a new receptionist and a street cleaner had joined the staff during the year.