Taxation

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Keep more of what you earn in Texas, where zero personal and corporate income tax create a low-cost, high- opportunity environment for businesses and families to thrive.

The city of Carrollton benefits from residing in three counties: Dallas County, Denton County and Collin County


Tax Exemptions

Carrollton offers tax exemptions that support residents and businesses and strengthen the local economic environment.

  • Homestead Exemption (20%)
  • $110,000 Over 65 Exemption
  • $110,000 Disabled Person Exemption
  • Disabled Veterans Exemption

FY2026 Ad Valorem Rate

FY 2026 table showing ad valorem tax rates
FY 2026 Ad Valorem Tax Rates (cents per $100 valuation)
City of Carrollton 0.537500
Dallas County 0.215500
Denton County 0.187869
Carrollton/Farmers Branch Independent School District 0.979735
Lewisville Independent School District 1.117800 
Dallas Independent School District  0.993835
Valwood Improvement Authority 0.040000
Dallas College 0.106575
Dallas County Hospital District 0.212000

Source: cityofcarrollton.com


Carrolltonโ€™s Municipal Cost Advantage

With lower combined taxes and municipal costs, Carrollton offers one of the best values in the DFW region.

Estimated Cost of Municipal Services Per Household


Sales and Use

Table showing sales and use tax rates
Sales and Use Tax Rates
City of Carrollton 1.0%
Dallas Area Rapid Transit  1.0% 
State of Texas 6.25%
Total Rate  8.25% 

Source: cityofcarrollton.com


Franchise Tax Rates

2026 and 2027 Franchise Tax Rate
Item Amount
No Tax Due Threshold $2,650,000
Tax Rate (Retail or Wholesale) 0.375%
Tax Rate (Other Than Retail or Wholesale) 0.75%
Compensation Deduction Limit $480,000
EZ Computation Total Revenue Threshold $20 million 
EZ Computation Rate  0.331% 

Source: comptroller.texas.gov


Where Your Property Taxes Go

Based on the average homestead value in Carrollton, property taxes are distributed across the school district, city, and county to fund essential public services.

School District, City and County Distribution Breakdown
Tax Entity Dollar Amount Collected Use 
School District $0.59 Schools and School Operations 
City $0.30 Police, Fire, Streets, Library, Park, Development, Environmental, Animal Control 
County $0.11 County Roads, Sheriff Services, County Courts, Health and Human Services

Source: cityofcarrollton.com