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The city of Allen’s property tax rate will slightly decrease as the city’s total assessed property value continues to rise.
Allen City Council approved decreasing the city's tax rate alongside approval of a $380 million budget for fiscal year 2026-27 following a public hearing at a Sept. 8 meeting.
The overview
The approved property tax rate for the 2027 tax year is $0.4147 per $100 of assessed valuation, which is a $0.0007 decrease from FY 2025-26, per city documents.
In Allen, the median single-family home is valued at $492,609, city documents state. With the approved tax rate of $0.4147, the annual property tax bill for the median-valued home will be $2,042.85 or approximately $170 per month, city documents state.
The city of Allen’s tax rate has been decreasing each year since FY 2017-18, city documents state. FY 2026-27 is the 34th year in Allen’s history that city officials have reduced the tax rate, Allen Chief Financial Officer Pete Phillis said.
“While some of our neighboring cities are increasing their tax rates or keeping them the same, Allen is in a position to lower ours,” council member Tommy Baril said. “I believe this speaks to the strong financial foundation this community has built over many years.”
At the same time, the city’s total assessed property value has been increasing over the past five years, with about $446 million in new construction added to the city’s tax roll this year, per city documents. The city’s total assessed property valuation is $24.45 billion, an increase of just over $1 billion from $23.1 billion the previous fiscal year.
Diving deeper
Allen officials are predicting $157.3 million in general fund revenue and an additional $222 million in special revenue for a total budget of $380 million, per city documents.
“This budget is a balanced budget,” Phillis said. “It’s a budget that is in the best interest of all stakeholders of the community.”
Allen’s general fund budget of $157 million will fund public safety, community development, recreation and more. The largest portion of the general fund budget—nearly half at $74 million—will go toward public safety, per city documents. Officials are also expecting the city to generate $2.8 million in hotel occupancy tax and $1.4 million in grant funds.
“I believe the budget prepared looks at opportunities for savings and efficiencies ... in an environment where costs seem to be increasing all around us,” council member Carl Clemencich said.
City officials have budgeted nearly $87 million in water and sewer revenue and are expecting the costs of providing water and sewer services to reach $85 million, per city documents. The city has also budgeted $10 million in solid waste revenue and is expecting to spend $9.8 million to provide those services, city documents state.
“Everyone should be proud of where we’re at as a city,” Mayor Chris Schulmeister said.
