Fast-growing Texas city may raise property tax rate for the first time in nearly a decade

A new maximum property tax rate approved by Frisco leaders means residents could see the city's first rate increase since 2017 in fiscal year 2026-27.

Council members have not adopted a final rate, but by raising the cap, they have made a higher tax bill possible in a fast-growing North Texas city where affordability remains a priority for families, seniors, and longtime residents.

What happened?

According to Community Impact, Frisco City Council approved a fiscal year 2026-27 property tax rate cap of $0.441289 per $100 valuation during an Aug. 10 special-called work session. If the city later chooses that amount, it would be Frisco's first tax rate increase since 2017.

The proposed ceiling is 3.71% higher than the current rate of $0.425517 per $100 valuation. City documents state that for every $100,000 of taxable value, a homeowner would pay about $1.31 more per month, or $15.77 per year.

The rate is not final. Frisco City Manager Wes Pierson said the budget and tax proposal reflect "a growing responsibility to reinvest in the roads, parks, equipment and people that have made Frisco successful."

Public hearings on the budget are scheduled for Aug. 18 and Sept. 1, and the council is set to vote on adopting the budget on Sept. 15. The budget and tax rate would take effect Oct. 1.

Why does it matter?

Frisco's proposed maximum rate would still remain lower than rates in some nearby cities, including Prosper, Little Elm, Richardson, and The Colony.

As Frisco continues to grow and mature, the city needs revenue to maintain roads, parks, and essential services.

What's being done?

The city has approved only the upper limit it can consider, not the final tax rate.

Frisco also has several tax relief measures in place. The city's homestead exemption can be as high as 20%. Homeowners age 65 and older, as well as those with disabilities, can qualify for an added $80,000 exemption, and some seniors who qualify may have their property taxes frozen.

As Frisco Deputy Mayor Pro Tem Angelia Pelham said, "Frisco continues to grow, and we expect that growth to remain an important part of our future. At the same time, Frisco is entering a new stage of maturity." 

She added, "Frisco's maturity requires us to be more intentional with each of our decisions."

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