Taxes in Frisco

Texas has no state personal income tax -- a statewide, constitutional fact, not Frisco-specific -- and Frisco's combined sales tax rate is cited at 8.25% by most 2026 sales-tax aggregators (6.25% state, 2.0% local, split among city, DART/transit, and other local allocations depending on the specific zip code), matching the maximum combined rate Texas law allows in most cases, though at least one source cited a slightly different 8.300% figure for part of the city. As in the rest of Texas, property tax is where the real state-and-local tax burden actually lands; see the property-taxes topic page for that detail.

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No State Income Tax (Briefly Restated)

Texas has never levied a personal state income tax, and a 2019 constitutional amendment (76% voter approval) converted the prior referendum-required framework into an outright ban, raising the bar for any future repeal to a two-thirds vote in each legislative chamber plus a statewide referendum. This is a statewide fact, not Frisco-specific, but it's the single largest driver of Frisco's overall tax competitiveness relative to income-tax states, and matters directly when comparing take-home pay for a Frisco-area job offer against one in an income-tax state.

Frisco's Combined Sales Tax Rate

Most 2026 sales-tax rate aggregators (Avalara, SalesTaxHandbook) cite Frisco's combined rate at 8.25%: Texas's 6.25% state base rate plus 2.0% in local rate, matching the statutory cap on combined state-and-local sales tax that Texas law allows in most jurisdictions. At least one aggregator cited a slightly higher 8.300% figure for part of the city as of April 2026 -- a discrepancy not resolved this session; confirm the specific rate for a given zip code (Frisco spans several) directly if precision matters for a specific purpose.

No Real Estate Transfer Tax

Texas does not impose a state or local real estate transfer tax on the sale of a home -- a genuine, commonly cited difference from many other states (including Florida's documentary stamp tax on deeds, cited on this project's Florida city pages). This lowers the closing-cost baseline for a Frisco home purchase relative to states that do levy a transfer tax, though it does not offset Texas's comparatively high property tax rate (see the property-taxes topic page).

Property Taxes (Summary -- See Full Topic Page)

Property tax is the other major state-and-local tax exposure for a Frisco homeowner, and it's a genuinely significant one -- Collin County-wide effective-rate estimates ran roughly 1.58%-2.3% of market value depending on source this session, layered across multiple overlapping taxing entities, with many west-Frisco homes carrying an additional MUD tax or PID assessment on top. See the property-taxes topic page for the full breakdown, including the directly sourced City of Frisco 2026 city-portion rate and homestead exemption changes -- detail this summary intentionally does not repeat.

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Last reviewed: 2026-08-22. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.