The city council is increasing the homestead exemption to 20%, saving homeowners money on property taxes.
FRISCO, Texas — Frisco homeowners will see a bigger break on their city property tax bills starting next year.
The city council unanimously approved increasing the homestead exemption from 15% to 20% during a special meeting on Tuesday.
That increase means the average Frisco homeowner will save about $120 on their city property tax bill starting in January 2026, according to city officials.
A homestead exemption is a tax break that lowers the taxable value of a person’s primary residence. For example, with a 20% exemption, a home valued at $400,000 would be taxed as if it were worth $320,000 for city property taxes, reducing the amount owed.
The maximum homestead exemption allowed by state law is 20%.
“It’s been a lot of hard work,” Frisco Mayor Jeff Cheney said. “It’s been rolling up the sleeves, it’s been looking at the strategic opportunities when it made sense from a budget perspective without reducing any services.”
Frisco first adopted a homestead exemption in 2017 at 7.5%. The city council has gradually increased the exemption since 2018, with this week’s vote reaching the maximum allowed under Texas law.
“The purpose of getting to this homestead rate was not just to do it at all costs, but to make sure that we could do it in a way that was financially sustainable,” Frisco City Manager Wes Pierson said.
Derrick Cotten, Frisco’s chief financial officer, said a large rise in property values helped make the increase possible. Early data from the Collin and Denton County Appraisal Districts shows the city’s total taxable property value rose by about 14% — an increase of roughly $6.9 billion from last year, according to a release from city officials.