Collin County Property Tax Rate Increase: What the First Hike in 33 Years Really Means for Your Tax Bill

Collin County Property Tax Rate Increase: What the First Hike in 33 Years Really Means for Your Tax Bill

Collin County has built a reputation as one of the most tax-efficient counties in Texas. That streak just ended. Commissioners voted to raise property taxes for the first time in 33 years despite pushback from the county judge, approving the budget and tax rate 4-1 for the fiscal year that starts Oct. 1. 

The headlines sound alarming, so let's look at the numbers. As a North Texas broker, I care less about how a tax story reads and more about what it costs a homeowner, a buyer, or an investor. The short answer: the county's rate change is small. The bigger story, and the one that affects your monthly payment, is rising home values.

The Collin County Tax Rate Increase at a Glance

The county's proposed FY 2026 budget maintained the tax rate of $0.149343, and taxes are calculated with a 5% homestead exemption. For FY 2027, the higher rate is expected to generate about $16.3 million in additional property tax revenue, and a median-value home with a homestead exemption will see estimated county taxes rise from $682.10 to $744.98. That represents an increase of $62.88. This budget will raise more total property taxes than last year’s budget +2

Why Collin County Raised Its Tax Rate

The debate on the Commissioners Court was about payroll, growth, and how lean the county can run.

The case against the increase. Judge Hill proposed asking county departments to cut 2.67% of their budgets and skip raises for county employees to avoid a tax increase, but the motion failed. Hill argued that taxpayers who don't get similar salary increases are effectively paying for raises given to county employees. KERA NewsWBAP

The case for the increase. Commissioners Susan Fletcher and Darrell Hale defended the employee raises as necessary to recruit and retain workers and keep pay competitive. Hale has said the county's fast growth leaves little room for deeper cuts. WBAPAudacy

The growth factor. Collin County is one of the fastest-growing counties in the nation according to the U.S. Census Bureau, and the Dallas Morning News reported it is home to four of the nation's five fastest-growing cities. Each new rooftop in Celina, Princeton, Anna, or Melissa brings demand for roads, courts, sheriff's deputies, and public health services. A Texas Public Policy Foundation study cited in the budget discussion found that county government spending grew more slowly than population and inflation combined between 2015 and 2025. HoodlineWBAP

The Real Story: Home Values Drove Most of Your Increase

Most coverage misses this point. Of the $62.88 increase on the median Collin County homestead, only a small share comes from the new rate. Most of it comes from higher appraised values.

Here is the breakdown using the county's own figures:

If the county had kept its old rate, the median homeowner's bill would still have risen to about $734.79, because the home is worth more. That means:

• About $52.69 (84%) of the increase comes from rising home values.
• About $10.19 (16%) comes from the rate hike itself.

This matches what local reporting has noted: the county held the same rate for the past few years, but tax bills still rose because home values increased. For most Collin County homeowners, the rate change adds a few dollars per month. The appraisal notice you get each spring matters far more. KERA News

Rule of thumb: the new county rate adds roughly $2 per year for every $100,000 of county-taxable value.

The County Is Only About 10% of Your Total Property Tax Bill

The county rate gets the headlines, but it is one of the smallest lines on your bill. Cities, school districts, and other entities set their own rates. Here is a full 2026 estimate for a $600,000 homestead in Plano. It assumes the appraised value equals market value, a standard homestead exemption, no over-65 or disability exemptions, and no MUD or PID. Audacy

Sources for the rates:

• Plano ISD: Plano ISD approved a rate of $1.03275 per $100 for FY 2026-27, down from $1.03955, a decline driven mainly by state-mandated rate compression. Community Impact
• City of Plano: The city proposed $0.4376 per $100 for FY 2026-27, the same as the previous year. Plano's homestead exemption is 20%, with a $40,000 senior/disability exemption and a tax freeze for residents 65 and older. Community ImpactZencity
• Collin College: The college's board unanimously approved $0.081220 per $100, a rate it has held since 2022. communityimpact

What this means for this homeowner:

• The new county rate adds about $9.44 per year, or about 79 cents a month, compared with the old rate.
• The total escrow for property taxes comes to about $683 per month.
• The school district still makes up more than half the bill, even after the larger state exemption.

Your numbers will differ by city, school district, and exemptions, especially in newer communities with MUD or PID assessments. Frisco, McKinney, Allen, Prosper, and Celina each have their own city and ISD rates.

The $140,000 Homestead Exemption Is Doing Heavy Lifting

A county rate increase lands softer this year because Texas homeowners got meaningful school tax relief. Texas voters passed Proposition 13 in November 2025, raising the school homestead exemption from $100,000 to $140,000, while Proposition 11 raised the over-65 and disabled exemption from $10,000 to $60,000. Homeowners who are 65 or older, or who have a qualifying disability, now have a combined school district exemption of $200,000. neuhausreneuhausre

The catch is that this exemption applies only to school district taxes, not to city or county taxes. For county taxes, Collin County homeowners rely on the county's 5% homestead exemption, plus any senior or disability benefits they qualify for through the Collin Central Appraisal District. neuhausre

What the Collin County Tax Increase Means for Homebuyers

1. Don't budget from the seller's tax bill. This is the most common mistake I see. A seller who has lived in a home for years may have a 10% homestead cap, an over-65 exemption, or a tax ceiling. Those benefits don't transfer to you. Underwrite your payment using the purchase price times the combined local rate.

2. File your homestead exemption right away. Texas no longer makes new buyers wait until January 1 of the following year to apply. File with the Collin Central Appraisal District as soon as you close and move in. The deadline for a given tax year is April 30.

3. Plan for escrow adjustments. Lenders set your first-year escrow using the prior year's taxes. That figure is often based on the seller's lower, capped value. Many buyers get an escrow shortage notice after the first full tax bill. Setting aside a cushion now avoids a surprise payment increase later.

4. Compare the whole bill, not just the price. Two $550,000 homes in different cities or school districts can carry annual tax bills that differ by more than $1,000. The county rate is the same across Collin County, so city, ISD, and MUD rates are where the real differences show up.

What It Means for Sellers

1. Price with total ownership cost in mind. Today's buyers compare monthly payments. A home priced right, with a clear tax estimate buyers can trust, stands out against listings that leave them guessing.

2. Help buyers see the real numbers. Offering a realistic post-sale tax estimate builds trust early and reduces renegotiation after the lender's escrow numbers come in.

3. Know the difference between a rate hike and a value change. If buyers mention "Collin County raised taxes," the honest context helps: the county piece is about $2 per $100,000 of value.

What It Means for Investors and Owners of Non-Homestead Property

Rental owners feel property taxes more directly because non-homestead properties don't get the 10% homestead appraisal cap or homestead exemptions.

For the past three years, investors have had some protection. The circuit breaker limit applies to non-homestead real property valued at $5,320,000 or less for tax year 2026. Each qualifying property carries two values: a capped appraised value that taxes are based on, and a market value. That protection has an end date. The limitation expires December 31, 2026 unless the legislature renews it. bcadownwell

If it isn't extended, 2027 appraisals on some rental properties could jump more sharply. When you underwrite rentals in Collin County, run a scenario where your taxable value resets to full market value in 2027.

How Collin County Compares Across DFW

Collin County isn't the only county raising revenue this budget season. Dallas County commissioners approved a $1.59 billion budget for fiscal 2027 and adopted a higher property tax rate that voters will approve or reject in November. Dallas County's adopted rate is 24.865 cents per $100 of assessed value, approved on a 3-2 vote. Sachse NewsSachse News

Even after the increase, Collin County's rate of about 15.1 cents per $100 remains well below Dallas County's. That gap is part of why many buyers relocating to DFW still favor Plano, Frisco, Allen, and McKinney when they compare total cost of ownership.

Key Dates for Collin County Property Owners

How to Lower Your Collin County Property Tax Bill

You can't vote down a rate that has already been adopted. You can control your taxable value and your exemptions.

1. Protest your appraisal every year. Most of the $62.88 median increase came from value growth, so a successful protest is worth far more than any rate change. Use recent comparable sales, repair estimates, and photos of condition issues.
2. Confirm every exemption. Check your CCAD account for your homestead, over-65, disability, and disabled veteran exemptions.
3. Turn 65? Apply immediately. You get the $200,000 combined school exemption plus a school tax ceiling, and cities like Plano add their own senior exemptions and freezes.
4. Attend budget hearings. Rates for next year will be set in August and September 2027. Public input matters, and this year's vote was contested.
5. Talk to a local broker before you buy. An experienced agent can estimate your true post-purchase tax bill before you write an offer.

Frequently Asked Questions

How much did the Collin County property tax rate increase?
The new rate is about $0.151 per $100 of assessed value, up from about $0.149 under the previous rate. The prior rate was exactly $0.149343. WBAP

How much more will I pay in Collin County property taxes?
The owner of a median-value home with a homestead exemption will pay about $62.88 more in county taxes, and most of that comes from higher home values. The rate change alone adds roughly $2 per $100,000 of county-taxable value.

When was the last time Collin County raised its tax rate?
This is the first time Collin County has raised its property tax rate since 1993. NewsBreak

When does the new Collin County tax rate take effect?
The approved rate takes effect October 1 with the start of the county's new fiscal year. It applies to 2026 tax bills, which are due January 31, 2027. WBAP

Does the $140,000 homestead exemption lower my county taxes?
No. The $140,000 exemption applies only to school district taxes. For county taxes, Collin County applies a 5% homestead exemption.

What is the average home value in Collin County?
According to the Collin County Appraisal District, the average home value in 2026 is $592,948. The county budget uses a median of $517,911. communityimpact

Who voted against the Collin County tax increase?
County Judge Chris Hill cast the only vote against the budget and tax rate. WBAP

The Bottom Line

Collin County's first tax rate increase in 33 years is real news, but it isn't a financial shock for most homeowners. The county line is about 10% of a typical bill, and the rate change adds a few dollars a month. The factors that move your payment are your appraised value, your exemptions, your school district, and whether you protest.

Buyers should budget from full market value, not the seller's bill. Sellers should price with total ownership cost in mind. Investors should prepare for the possible end of the 20% circuit breaker in 2027.