Prosper homeowners can expect to pay about $103 more in property taxes for the 2026 tax year after the Town Council voted 6-0 to advance a proposed rate to public hearing.
The tax rate itself isn't changing. At $0.505 per $100 of assessed value, it matches the current year. But because home values keep climbing, the rate generates more revenue, and Texas law classifies that as a tax increase.
The average Prosper homestead rose in taxable value from $699,047 to $719,390, a 2.91% jump, according to the town's official tax rate notice. That pushes the typical tax bill from $3,530.19 to $3,632.92.
Across all properties, the town expects to collect $56.4 million in property taxes, up $2.74 million (5.11%) from the current year's $53.7 million. Much of that growth comes from new construction: total property value in Prosper jumped from $10.8 billion to $11.5 billion, Community Impact reported.
Mayor David Bristol, council members Amy Bartley, Chris Kern, Marcus E. Ray, Craig Andres and Cameron Reeves all voted to proceed at the Aug. 11 meeting. Council member Doug Charles was absent.
The proposed rate of $0.505 sits above the no-new-revenue rate of $0.500622 but below the voter-approval rate of $0.509936, the highest the town may adopt without holding an election.
Town Manager Mario Canizares told the council at the Aug. 11 meeting that the budget's spending increases are driven by compensation for existing employees, particularly police officers, firefighters and dispatchers. "This is about taking care of the employees that we have," he said, as reported by Community Impact on Aug. 14.
The broader FY2026-27 budget totals $139.2 million, with $74.7 million earmarked for capital projects including widening Teel Parkway and Coit Road. The average residential water and wastewater bill is also set to rise, from $177.70 to $208.04, due to increasing costs from the North Texas Municipal Water District.
Bristol told Community Impact in an Aug. 21 interview about the $240 million Bella Prosper mixed-use development that the town's strategy is to grow commercial tax base to ease the burden on homeowners. "Every single piece of commercial development that I can bring in, I increase the tax base, and it alleviates some of the tax burden on the taxpayers," he said.
How to weigh in
The public hearing is set for Tuesday, Sept. 8, at 6:15 p.m. at Prosper Town Hall, 250 W. First St. The council is scheduled to vote on both the budget and the tax rate at that same meeting.
Residents who cannot attend may contact council members at their offices. The Collin County Tax Assessor's office can help with individual tax calculations at 972-547-5020 or [email protected].
Before the formal hearing, the town is hosting a Budget Town Hall on Thursday, Sept. 3, at 6 p.m. in the same location, where staff will present the proposed budget and take questions.
