Police and Crime Commissioner Dafydd Llywelyn had at first proposed lifting their precept by more than 9 per cent as Dyfed Powys Police struggles to cope with rising costs.
The proposals have been looked into by a committee and a committee report said they were "pleased to see that this has resulted in the proposed precept increase reducing from a figure initially more than 9 per cent to - in our view - a much more acceptable 7.75 per cent."
The increase, if approved by another committee, would raise the average band D property precept by £1.87 per month or £22.49 per annum to £312.65.
This increase will raise a total precept of £72.518m and with other sources mean a total funding of £133.414m.
The minutes of the sub group reads: "The subgroup acknowledges that the commissioner faces an extremely difficult task in meeting his statutory obligations regarding the setting of a balanced budget on the one hand and keeping the financial burden on local tax payers to a minimum on the other.
"The Commissioner and Chief Constable, along with their respective Chief Finance Officers, have worked hard to deliver as many savings as possible."
They add: "No one likes the idea of paying more taxes. However, if we are to maintain an efficient and effective police force in Dyfed-Powys the Chief Constable must be provided with sufficient resources.
"In the absence of adequate funding from the Home Office the Commissioner has no option but to turn to local taxpayers to make up the shortfall.
"The conclusion of the subgroup is therefore that the precept increase proposed by the Commissioner is appropriate in the circumstances."
The proposed precept will be put under scrutiny at the first meeting of the Dyfed Powys Police and Crime Panel in 2023.
Panel members will meet on January 27 to discuss the precept and challenge Police and Crime Commissioner Dafydd Llywelyn on his budget plans.
The panel, made up of members nominated by the four councils in the force area plus two independent members, has the power to approve or veto the proposed police precept.
Local policing is funded from a Home Office grant, as well as contributions from the public via the Council Tax, known as the
Panel Chair, Professor Ian Roffe, said: “We look forward to meeting with the Commissioner to discuss his proposed precept. Households across the country are feeling the strain of the cost of living crisis, therefore any increase in their taxes must be coupled with a reassurance that they will have good value for their money.”
Visit www.dppoliceandcrimepanel.wales for more information about the Panel, its membership, forthcoming meeting dates, agendas and webcasting links, as well as submitting questions for the Panel to put to the Commissioner.
Questions can be submitted online, or in writing at DPPandCrimepanel@carmarthenshire.gov.uk at least 10 days before a meeting.