Frisco Raises Its Homestead Exemption to the State Maximum
Homeowners to benefit from increased property tax savings starting next year
Good news for Frisco homeowners: the City Council has officially approved raising the homestead property tax exemption to 20%, the maximum allowed by the state of Texas. The decision was made unanimously on July 1 and will go into effect for the 2025 tax year
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What does this mean for homeowners?
With this increase, the average Frisco homeowner is expected to save around $120 per year on city property taxes. While this might not sound like much at first glance, it adds up over time — and when combined with other exemptions, the savings can be even more significant.
Frisco has gradually increased this exemption over the years:
- 7.5% in 2017
- 12.5% in 2022
- 15% in 2023
- Now reaching the full 20% allowed by law
Why now?
City officials explained that this was the right time to increase the exemption due to a sharp rise in property values. In fact, Frisco saw a 14% increase in its taxable value — totaling nearly $6.9 billion in new value. This growth gave the city financial flexibility to offer greater tax relief without cutting essential services.
What about the budget?
According to Frisco’s Chief Financial Officer, the new exemption was carefully timed to meet deadlines for the upcoming fiscal year. The city will still be able to fully fund police, fire, infrastructure, and other services, while homeowners get a break on their tax bill. The slight shift in tax responsibility will largely be absorbed by commercial properties, which will make up a slightly larger share of the overall tax base.
Additional relief for seniors and people with disabilities
In addition to the 20% homestead exemption, homeowners aged 65 or older — or those with qualifying disabilities — will continue to receive an extra $80,000 exemption on their home’s appraised value. These residents also benefit from a property tax freeze, meaning their city property taxes won’t increase regardless of rising home values.
Big picture: more relief could be coming
This move comes at a time when Texas lawmakers are also working on additional property tax cuts statewide, including increased school tax exemptions. Combined with Frisco’s local efforts, homeowners could see some of the largest property tax savings in recent years.
Bottom line: If you own and live in a home in Frisco, you’re about to get some well-deserved tax relief. The 20% homestead exemption not only helps homeowners save money — it reflects the city’s commitment to balancing growth with long-term financial responsibility.
