Property Tax Relief for Frisco Homeowners
Just weeks after Gov. Greg Abbott signed legislation for statewide property tax reforms, homeowners in Frisco are slated to see more property tax relief.
Frisco City Council unanimously approved an increase in the city’s homestead property tax exemption from 15% to 20% — the maximum allowed by state law — at a special meeting Monday.
Background and Goal
Mayor Jeff Cheney said at the meeting that it has always been his and the council’s goal to raise the exemption to the state maximum.
“It’s been looking for the strategic opportunities when it made sense from a budget perspective, without reducing any services that the city has done,” Cheney said.
Impact on Tax Base and Property Owners
Noting that shrinking the tax base for residential properties means shifting some burden onto the commercial sector, Cheney said the city now needs to use other tools to ensure its policies are equitable to all property owners.
Rising home values have led to higher property taxes for homeowners across Collin County. The appraisal value of the county’s single-family homes grew by 6.5% in 2024, according to data from the property tax consultancy O’Connor & Associates.
Homestead Exemption and Tax Relief
The homestead exemption allows Frisco to provide tax relief without changing the tax rate. Homeowners can now shave off a fifth of their primary home’s assessed value when calculating their property taxes.
Frisco first adopted a homestead exemption in 2017, at 7.5%. The city then raised the exemption three times, most recently to 15% in 2023.
Related: Frisco City Council increases homestead exemption, gives property tax relief for seniors
Implementation and Effect on Homeowners
Derrick Cotten, the city’s chief financial officer, said Monday was the last day for the city to act on the exemption to have the change take effect for next fiscal year’s tax bills.
Based on projected market value and tax rate, the average Frisco homeowner will see their property tax paid to the city decrease by about $120, according to a presentation Cotten gave at the meeting.
Frisco joins Plano in offering the maximum homestead exemption to its homeowners.
Statewide Developments and Future Changes
Texas voters will also decide in November on two constitutional amendments to raise the $100,000 homestead exemption for school taxes to $140,000 and $200,000 for residents with disabilities or who are 65 or older.
Conclusion
The increase in the homestead exemption in Frisco is a significant step towards providing property tax relief to homeowners. With the city offering the maximum exemption allowed by state law, homeowners can expect to see a decrease in their property taxes. As the city continues to grow and develop, it is essential to ensure that tax policies are equitable and fair to all property owners.
Frequently Asked Questions (FAQs)
Q: What is the homestead exemption, and how does it work?
A: The homestead exemption is a tax exemption that allows homeowners to deduct a portion of their primary home’s assessed value from their property taxes. In Frisco, the exemption has been increased to 20%, which means that homeowners can deduct 20% of their home’s assessed value from their property taxes.
Q: How will the increase in the homestead exemption affect my property taxes?
A: The increase in the homestead exemption will result in a decrease in property taxes for homeowners. Based on projected market value and tax rate, the average Frisco homeowner can expect to see their property tax paid to the city decrease by about $120.
Q: What other changes are being made to property tax policies in Texas?
A: Texas voters will decide in November on two constitutional amendments to raise the $100,000 homestead exemption for school taxes to $140,000 and $200,000 for residents with disabilities or who are 65 or older.
