How does the City of Plano determine how your tax dollars are used? Much like a budget you’d use at home, the City plans for known expenses and saves for future and unexpected costs. The City follows a four-step process each year to ensure departments get the funds they need, employees are compensated fairly, future capital projects are funded, and reserve funds are adequate for emergencies. All budget estimates are based on industry best practices and go through several channels before being finalized.

Ultimately, budget decisions are based on the City Council’s Strategic Goals for Excellence. These goals help manage daily operations and focus on future challenges and opportunities. Goals are assessed and revised annually.

The City Council will review the Recommended Budget and Proposed Community Investment Program during August and September. All documents are posted here for your review. If you have questions about the budget, please submit them to askplano@plano.gov. We will post answers every Monday on this site.

About the City Budget

The Operating Budget is the financial plan for the entire year. The Community Investment Program (CIP) is the five-year financial plan for infrastructure and facility projects. This is sometimes referred to as the “Capital Improvement Plan.” While some new projects still occur, Plano's main focus is on the renovation, expansion or upgrades to existing streets, utilities and buildings.

You can explore Plano's current FY 2024-2025 Operating Budget and Community Investment Program at our Open Budget Portal.

Property Tax Basics

A property tax (or Ad Valorem) is a revenue based on the value of a property. This value is determined by the Central Appraisal District, which is an outside agency that acts independently of the City. Plano spans over two counties, Denton and Collin, so two Central Appraisal Districts work to determine property values in their respective territories. The Appraisal District determines a property’s value, but not the tax rate.

Homestead properties fall under the State of Texas’ 10% Appraised Tax Value Limit. This means the appraised tax value can only increase by 10% each year.

The City of Plano offers tax breaks to its residents. For example:

• Property owners can homestead one property, no matter how many homes they own. The City of Plano's Homestead Tax Exemption is 20%.
• $40,000 Senior/Disability Exemption is available to residents aged 65-and-over, or those presently disabled.
• 65-and-Over Tax Freeze holds the tax rate once a resident turns 65. If you are a 65-year-old resident and apply for this exemption, your tax rate will stay the same or decrease, depending on property values. For instance, if your property value decreases, you will pay a lower tax. If your property value increases, you will keep the same, steady tax.

Contact the Central Appraisal District with questions about filing deadlines.

• Collin County Appraisal District
• Denton County Appraisal District