Frisco Approves Maximum Homestead Exemption to Boost Property Tax Relief

Frisco

July 2, 2025 Maverick Tax Guardians

In a move to provide meaningful property tax relief, the Frisco City Council voted on July 1 to increase the city’s homestead exemption to the full 20% allowed by state law. This change will go into effect for the 2025 tax year, benefiting thousands of local homeowners.

The homestead exemption is a property tax discount available to primary residence owners. Increasing the exemption to 20% means homeowners will pay taxes on only 80% of their home’s assessed value for city taxes, reducing overall tax bills.

Key Highlights:

🏠 New exemption: 20% of a home’s taxable value
💸 Projected savings: About $370 annually for the average Frisco homeowner
🗳️ Approved by Frisco City Council on July 1, 2025
📅 Takes effect for the 2025 tax year

According to city staff, the increase was made possible by strong sales tax revenues and a healthy city budget. Officials noted that while new development brings growth, they’re committed to using those gains to ease the financial burden on residents.

Mayor Jeff Cheney emphasized that the exemption is part of Frisco’s long-term strategy to remain fiscally responsible while keeping taxes low. “We want to provide relief without compromising city services,” he said.

Frisco now joins a growing number of Texas cities adopting the full 20% exemption as property values continue to rise across the region.