Prosper Town Council members approved raising the town’s homestead tax exemption from 15% to 17.5% during a June 25 meeting.

The 2.5% increase is expected to save qualifying residents an annual total of $1.16 million—roughly $111 for each property owner, Finance Director Chris Landrum said.

How to qualify

To be eligible for the exemption, a Prosper resident would need to:
  • Own and occupy the home as their primary residence
  • Submit the exemption application to their county’s appraisal district by April 30
The exemption cannot be less than $5,000 or greater than 20% of the home’s assessed value, according to a meeting presentation.

The 17.5% rate will go into effect for property taxes due in 2025.

Diving deeper

Prosper’s homestead exemption was established for fiscal year 2016-17 at 7.5% and raised to 10% for FY 2017-18.

“It stayed at 10% all the way until 2023, where it was increased to 12.5%,” Landrum said.

It was adjusted again to 15% for FY 2023-24. The new 17.5% rate gives Prosper the second-highest exemption in the surrounding area, according to a meeting presentation.

“This is an important step for our homeowners,” Mayor David Bristol said.