Frisco raises homestead exemption to 20% for homeowners
Frisco homeowners could save about $120 on the city tax bill after council raised the homestead exemption to 20%, but the move trims city revenue from owner-occupied homes.
Frisco City Council unanimously approved raising the city’s homestead exemption from 15% to 20%, giving owner-occupied homes a larger break on the city portion of property taxes. City officials tied the change to the FY26 budget and kept the city property-tax rate unchanged from the previous year.
The higher exemption reduces the taxable value of qualifying homes, which is why it matters to homeowners watching annual tax bills in a city where values and tax statements remain a constant pressure point. NBC 5 Dallas-Fort Worth reported that the increase could save the typical Frisco homeowner about $120 on the city property-tax bill.
The move applies only to homesteaded property, so the benefit goes to residents who live in the homes they own. That makes the change especially relevant in Frisco, where rapid growth has brought new neighborhoods, higher assessed values and continued debate over affordability across Collin County. The city’s own FY26 property-tax messaging said the new budget includes the 20% homestead exemption while holding the rate steady.
The tradeoff is on the revenue side. Frisco’s FY26 proposed budget puts the city’s property-tax take at approximately $75 million, and any exemption that lowers taxable value for a large share of homes reduces what the city collects from that base. That can tighten the margin available for streets, police, parks and other services, or increase pressure on future tax decisions and on properties that do not qualify for the exemption, including non-homestead property.
The council’s unanimous vote signals broad agreement that homeowner relief should take priority in the current budget cycle. It also fits a wider North Texas pattern, where local leaders are under growing pressure to show tax relief as housing costs remain a top concern. At the state level, Lt. Gov. Dan Patrick said on Feb. 13, 2025, that Senate Bill 4 and Senate Joint Resolution 2 passed unanimously in the Texas Senate to increase the statewide homestead exemption to $140,000, and to $150,000 for seniors.
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