The Frisco City Council on Aug. 10 approved a maximum property tax rate for fiscal year 2026-27 that would increase the municipal portion of the tax bill for homeowners, marking the city’s first tax-rate rise in nearly a decade.
What the increase means for homeowners
Council members voted during a special called work session to set the proposed maximum tax rate at $0.441289 per $100 of taxable valuation. That figure is a 3.71% increase over the current rate of $0.425517 per $100 valuation.
City officials presented the change as a measured response to Frisco’s growth and the need to keep pace with maintenance and services. City Manager Wes Pierson said the budget and rate reflect “a growing responsibility to reinvest in the roads, parks, equipment and people that have made Frisco successful.”
“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,” Frisco Deputy Mayor Pro Tem Angelia Pelham said.
Under the proposed maximum rate, the increase from the current level would amount to about $1.31 per month for the average taxpayer, or $15.77 annually, according to city documents. Council members emphasized that the approved figure is a ceiling; the final adopted rate will be set after public hearings and additional budget deliberations.
Budget context and next steps
Officials said the proposed tax rate is intended to fund ongoing capital needs and municipal services as Frisco matures from a fast-growing community into a more established city with different infrastructure demands.
- Proposed maximum rate for FY 2026-27: $0.441289 per $100 valuation
- Current FY 2025-26 rate: $0.425517 per $100 valuation
- Rate in place from 2018–2023: $0.4466 per $100 valuation
Council has scheduled public hearings on the budget for Aug. 18 and Sept. 1. The governing body will consider final adoption of the budget and the official tax rate at its Sept. 15 meeting.
Exemptions and comparisons with neighboring cities
City documents highlight that, even with the proposed increase, Frisco’s maximum tax rate remains lower than several neighboring jurisdictions, including Prosper, Little Elm, Richardson and The Colony. Frisco also offers several exemptions that affect homeowners’ final bills.
The city currently provides a 20% homestead exemption. Additional tax relief is available for seniors and disabled residents: eligible homeowners aged 65 or older or those with disabilities may receive an extra $80,000 exemption. Qualifying seniors can also apply for a property tax freeze under existing policies.
Implications for residents
For many homeowners, the proposed rate will translate into a modest annual increase; for the city, the measure would restore some room in the operating budget after years of holding the line on rates. City leaders framed the move as aligning revenue with the demands of maintaining roads, parks and municipal equipment amid the city’s continued growth.
Before any change becomes permanent, residents will have opportunities to weigh in during the public hearings. City Council has not yet finalized the FY 2026-27 rate and can adopt a rate lower than the approved maximum when it votes in September.
| Fiscal year | City tax rate (per $100 valuation) |
|---|---|
| 2018–2023 | $0.4466 |
| FY 2025-26 (current) | $0.425517 |
| FY 2026-27 (proposed max) | $0.441289 |
City officials said more detailed budget documents and explanations of how the increased revenue would be allocated will be available as the upcoming hearings approach. Residents can follow the city’s posted agenda materials and contact elected officials with questions prior to the Sept. 15 adoption vote.
