Frisco homeowners received meaningful tax relief in 2026. The Frisco City Council raised the city homestead exemption from 15% to 20%. This is the maximum allowed under Texas state law. As a result, the average Frisco homeowner saves approximately $120 per year on the city portion of their property tax bill.
The Bigger Picture: Texas School Homestead Exemption
The city exemption is just one piece of the puzzle. Texas also increased the school homestead exemption to $140,000. This significantly reduces the school district portion of your bill, which is typically the largest component of Frisco property taxes.
For example, a home appraised at $600,000 in Frisco ISD sees the school taxable value drop to $460,000 after the exemption. As a result, homeowners save hundreds of dollars annually on just the school portion alone.
How to File and What to Know
If you purchased a home in Frisco in 2024 or 2025, make sure you have filed your homestead exemption. You can file with the Collin County Appraisal District or Denton County Appraisal District, depending on which side of Frisco your property sits.
To qualify, you must own and occupy the home as your primary residence by January 1 of that tax year. In addition, additional exemptions are available for homeowners over 65, disabled veterans, and surviving spouses.
Extra Protections for Seniors
The over-65 exemption also freezes the school district portion of your taxes. This prevents increases even as property values rise. Furthermore, Texas law caps annual appraised value increases at 10% for homesteaded properties. This provides further protection against market volatility.
Understanding how homestead exemptions, appraisal caps, and protest deadlines work together can save Frisco homeowners thousands over time.
Neda Dameshghi is a North Dallas real estate specialist at HousesByNeda, brokered by Real Broker LLC. Follow HousesByNeda on Instagram for daily market updates. Also, subscribe to the Frisco Prosper Insider newsletter on Substack for weekly local insights.