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The city of Plano is proposing a tax rate of $0.4376 per $100 valuation for FY 2026-27, the same rate as the previous fiscal year.
Plano City Council saw a preview of the proposed rate at a meeting Aug. 10.
In a nutshell
Plano has one of the lowest proposed tax rates in the Dallas-Fort Worth area for FY 2026-27, according to data collected by the city of Plano.
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Cities like Fort Worth, Dallas and McKinney had not proposed a tax rate for the upcoming fiscal year at the time of the meeting. Fort Worth is proposing a tax rate of $0.702, while McKinney is proposing a tax rate of $0.417, per previous reporting.
Dig deeper
Plano Director of Budget and Performance Management Karen Rhodes-Whitley said the city consistently proposed property tax rates at or near its calculated “no-new revenue” rate, which is the rate the city would need to collect the same amount of property tax revenue as the previous year, from 2019 to 2022.
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Rhodes-Whitley said last year was the city’s first tax increase since 2009. The city increased its tax rate last year because of legislative uncertainties that would impact the city’s ability to increase revenue in the future, per previous reporting.
The city is seeing a tax rate this year close to its calculated no-new revenue rate because of the current market, Rhodes-Whitley said.
“Our average tax values have started going down and our market share has started going down,” she said.
Rhodes-Whitley said when property values go up, the no-new revenue rate goes down. When property values go down, the no-new revenue rate goes up.
Looking ahead
The city is expecting debt pressures to impact Plano’s tax rate in future years, City Manager Mark Israelson said.
“We can get by this year withholding the tax rate firm, but [in] the future years that we have there will likely be more than one need to adjust the tax rate to make sure that we can cover the debt and keep up with the operations needed for that,” Israelson said.
The city is planned to have another budget and tax rate discussion at its next city council meeting Aug. 24 and is expected to approve both at a meeting Sept. 14, per previous reporting.
