For over 30 years, the city of Allen reduced its tax rate year after year, a rare accomplishment among Texas cities. The newly adopted 2025-2026 budget continues that streak, lowering the rate to $0.41540.
At that rate, the owner of a median-valued single-family home in Allen will pay about $1,978 in municipal taxes for the year, or roughly $165 per month. In return, residents receive 24/7 police and fire protection, parks and trails, a well-maintained road system and access to a world-class public library — services that city leaders emphasize provide far more value than the monthly bill suggests.
“While we recognize $165 per month is a significant expenditure, it is a payment that is being professionally and purposefully used to provide you and your community with immense value,” City Manager Eric Ellwanger said in the budget proposal.
A Balanced Approach To Revenue
Allen’s portion of the property tax bill represents only about 24% of what residents pay overall. The rest goes to Collin County, school districts and Collin College.
City officials say the goal isn’t to raise more revenue, but to meet the community’s needs while keeping the tax burden low. That means looking beyond property taxes: commercial development along State Highway 121, tourism activity and grants all help offset costs and reduce pressure on homeowners.
For the upcoming fiscal year, Allen’s total assessed property value climbed to $23.11 billion, an 8% increase from last year. Nearly $369 million of that growth came from new development, further boosting sales tax revenue for the city.
Investing In Growth
The budget also expands staffing, adding nearly 17 full-time equivalent positions. New hires include three patrol officers, additional firefighters for a new ambulance, detention staff and trail maintenance workers. Other roles will support water, sewer, drainage, code compliance and the expanded public library.
These investments aim to balance the needs of a growing community with those of longtime residents, many of whom plan to remain in Allen through retirement.
“With more than 113,000 people now calling Allen home, we know we can’t meet every individual desire,” Ellwanger said. “However, we work every day to put our resources behind the efforts that connect us.”
As of October 2025, Allen carries about $191 million in outstanding debt, with $21.8 million allocated this year for repayment. A portion of the tax rate, just under 24%, is dedicated to debt service, keeping below the city’s 35% cap.
Steady, But Not Static
A public hearing for the proposed budget and tax rate will take place during the regular Allen City Council meeting on Sept. 9, beginning at 7 p.m. at Allen City Hall.
While Allen prides itself on fiscal discipline, city leaders stress that steady doesn’t mean standing still. New developments paired with infrastructure investments and community-focused services reflect a city preparing for its future while honoring the character that drew people there in the first place.
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