The property tax figure on a Plano listing describes the seller's history with the house. It doesn't predict what the next owner will pay. Texas limits how fast a homestead's appraised value can rise. After years of that limit, a long-held home can carry an appraised value well below what it would sell for. When the house sells, the limit ends. For a buyer, the meaningful number is the size of that gap, and the gap is widest in exactly the homes whose tax history looks most reassuring.
2026 shows the mechanism at work. Plano prices softened and taxable values went up anyway, and the cap accounts for both.
Prices went down, taxable values went up
Start with the sales data. The NTREIS monthly report for September 2026, produced by Texas A&M's real estate research center, recorded 192 single-family sales in Plano at a median price of $510,000. That was down 3.1% from $526,500 in September 2025. The average price that month was $587,066, homes took 44 days to sell, and inventory stood at 3.2 months.
Appraisals followed a similar line. When Collin Central Appraisal District certified its 2026 rolls as of July 23, the countywide average home value had fallen from $603,190 to $588,119, according to the Murphy Monitor. Within Plano ISD's boundaries, the average home was basically unchanged, at $614,707 compared with $613,290 the year before.
Then look at the City of Plano's own taxpayer impact statement for FY 2026-27. The median-valued homestead went from $452,109 in tax year 2025 to $464,574 in tax year 2026, an increase of about 2.8%. The city's estimated bill on that home rose from $1,978 to $2,033, even though the rate didn't change. That $464,574 is the city's taxable figure, so it isn't comparable to a sale price. What matters is which way it moved.
The cap explains it
Under Texas Tax Code Section 23.23, a homestead's appraised value for the year is whichever is lower: its market value, or last year's appraised value plus 10% plus any new improvements. Over a run of fast-rising years, market value climbs faster than the cap permits, and a gap opens up. In a flat or slightly down year, that gap doesn't vanish. The capped value keeps rising toward market value, up to 10% a year, until it catches up.
The appraisal district says this plainly. In its homestead cap summary, CCAD writes that "a reduction in market value would need to equal or fall below the appraised value for a property to realize an impact in taxes calculated." The same document works through an example. A home with a current market value of $500,000 and a prior-year appraised value of $400,000 can be appraised at no more than $440,000. Exemptions are then subtracted from that figure to get taxable value.
In that example, $60,000 of market value goes untaxed. The combined Plano rates come to roughly $1.70 per $100, so before exemptions the gap is worth about $1,000 a year in taxes. When the house sells, that $60,000 comes back onto the tax roll.
What a Plano address pays per $100 for 2026
All four of the main taxing entities set their 2026 rates between late August and mid-September. Each one uses its own exemption rules, so the cap gap and the exemptions affect the bill differently line by line.
| Taxing entity | 2026 rate per $100 | General homestead exemption | Age 65+ provisions |
|---|---|---|---|
| Plano ISD | $1.03275 | $140,000 state-mandated | Additional $60,000 |
| City of Plano | $0.4376 | 20% | $40,000, tax freeze available |
| Collin County | $0.151414 | 5% | $30,000, tax freeze available |
| Collin College | $0.081220 | 20% | $100,000, tax freeze available |
According to its September 8 board brief, Plano ISD trustees unanimously adopted the rate, made up of $0.79540 for maintenance and operations and $0.23735 for debt service. Community Impact reported that Plano City Council kept its rate flat on Sept. 14. At a meeting the same day, Collin County raised its rate to $0.151414. On Aug. 25, Collin College trustees held steady at $0.081220.
The school exemption is new this cycle. The Texas Comptroller lists the state school homestead exemption at $140,000, with an additional $60,000 for homeowners who are 65 or older or disabled. The Texas Tribune reported that voters approved Proposition 13 in November 2025, raising the exemption from $100,000. Since the school exemption is a flat dollar amount and the city and college exemptions are percentages, a higher appraised value adds to the school line in full and to the other lines at a reduced share.
How the cap ends for a buyer who closes this fall
Take a buyer who closes on a Plano home in October 2026, bought from a seller who claimed a homestead exemption. Here is the sequence the statute and CCAD set out.
- At closing. Under paragraph 13 of the TREC resale contract, form 20-19, current-year taxes are prorated through the closing date. The proration can account for changes in exemptions, and the parties settle up once the actual tax statements come out if the amount differs. The contract doesn't specify an estimation method for when current-year taxes aren't known yet. Under Tax Code Section 11.42(f), someone who buys after January 1 can get a prorated exemption for the rest of that year only if the previous owner didn't receive the same exemption. Because this seller claimed one, the 2026 bill stays on the seller's terms.
- January 1, 2027. According to the Comptroller, the cap expires on January 1 of the tax year following the year the owner stops qualifying. The seller's cap ends, and CCAD appraises the house for 2027 at market value.
- Filing the homestead application. For a home acquired after January 1, the statute sets a separate deadline, which is before the first anniversary of the purchase. The application generally has to include a driver's license or state ID showing the property's address. The law lists some exceptions, including certain active-duty military households.
- Spring 2027 notice. In 2026, CCAD mailed real-property appraisal notices on April 15, and its 2026 protest procedures set a May 15, 2026 protest deadline. The first notice a buyer receives shows the home at market value, with no cap applied.
- 2028. CCAD says the cap becomes available the year after the owner first qualifies as the January 1 owner. If a buyer's prorated exemption started after January 1, the cap waits until the year after they first own the home on a January 1. For our October buyer, the 10% limit first applies to the 2028 appraisal.
That puts at least one full year between closing and the first capped appraisal. It's also the year in which the whole gap between the seller's capped value and current market value comes back onto the bill.
Why softer prices don't mean a smaller jump
A down market seems like it should shrink the reset. That only happens if market value drops all the way to the seller's capped value, and CCAD's own explanation says the same. A 3.1% decline in the median sale price over twelve months doesn't come close to erasing a gap that took years of capped growth to build. Meanwhile, the long-held homes in Plano's established neighborhoods keep moving their capped values up toward market even as sale prices slip. The city's rising median homestead figure is the visible result.
For buyers comparing Plano with other suburbs, the listed tax amount is the least useful line on the listing sheet. A better estimate starts with what you expect to pay for the house, applies the four rates above with each entity's exemption, and treats the seller's bill as a record of how long they owned it. If you're early in a move, our guides on relocating to Plano for work and the Texas option period explain where this estimate fits into the contract timeline.
FAQ
Does a new house avoid the reset? No. The same rules apply to every homestead. The cap starts the year after the first owner qualifies as the January 1 owner.
Does the over-65 freeze transfer with the house? The table above shows the freezes as provisions each entity offers to qualifying homeowners. They are tied to the owner's eligibility, and Comptroller guidance ties homestead benefits to an owner who occupies the property as a principal residence.
What if the homestead application gets filed late? The statute accepts late residence-homestead applications for up to two years after the tax delinquency date. A tax professional can explain how that applies to a particular situation.
Estimating carrying costs on a specific Plano address means reading the appraisal history behind the listed bill, and that's work Katie Chu Group does with buyers before they write an offer. If you're selling, we can also show how your own cap history looks to buyers through a home valuation. Schedule a consultation and we'll work out the numbers on the house you're considering.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
