Homeowners in Collin County will see a change in their property tax rates. After 33 years, Collin County TX, voted to increase the property tax rate. This move will help fund new infrastructure projects and support the county’s growth.
It’s important to know how this will affect you if you own a home or business in North Texas. Although it may seem like a small amount when you look at a fraction-of-a-cent increase, you can rack up a pretty hefty tax bill when you factor in value increases and other local taxing entities.
Let’s explore what changed, why they chose to increase the property taxes in Collin County, and how this will affect your tax bill in cities such as McKinney, Frisco, Allen, Plano, and Prosper.
What Changed with the Collin County Tax Rate?
The Collin County Commissioners voted to increase the property tax rate to approximately $0.151 per $100 of valuation. It’s the first increase in 33 years.
- Previous Rate: $0.149 per $100 valuation
- New Rate: $0.151 per $100 valuation
This is the first time Collin County, TX, has seen a property tax rate increase in 33 years. Collin County has relied on high property values and growth to increase revenue. They were forced to raise the tax rate to continue providing services to residents.
If your home is worth an average of $500,000, you can expect to pay about $10 more in taxes due to the county tax rate increase. The county tax rate increase will only be one factor that will increase your tax bill. Once you add the increase in your property value from local authorities, your tax bill will be much higher.
Why Did Collin County Increase Property Taxes?
There are a couple of reasons why the Collin County Commissioners voted to increase property taxes. One reason is the rapid growth that Collin County has seen.
Collin County is one of the fastest-growing counties in North Texas. Many new residents have moved to Collin County over the last decade. When you have a large number of new residents coming into your area, you need to provide them with the proper infrastructure. This includes expanding roadways and providing law enforcement and criminal justice services. And increasing the staff at the county courts.
Drivers of the County Budget Expansion
- Population Surge: Higher demand for roads & transit
- Inflation & Material Costs: Increased public construction costs
- Law Enforcement & First Responders: Essential expansion for safety needs
Another reason for the property tax increase is the cost of these infrastructure projects. Because of inflation, building costs across the county have increased. Including civil engineering, labor and public services. So the county had to increase the property tax rate to cover these expenses.
How Much More Could Homeowners Pay?
As you can see, it all depends on your net taxable value.
Estimated County Tax Bill Impact Sample
| Net Taxable Value | 2025 County Tax $0.149/$100 |
2026 County Tax $0.151/$100 |
| $400,000 | $596 | $604 |
| $600,000 | $894 | $906 |
| $800,000 | $1,192 | $1,208 |
These numbers only apply to the county tax rate increase. You will also have to factor in your ISD and city tax rates. All taxing entities that your home is located in can affect your tax bill. If your ISD and City also decide to increase their tax rates, you will see a higher tax bill.
Tax Rate vs. Property Value | Understanding the Difference
You may be wondering why your property tax bill increases when the tax rate stays the same. Here is how your property tax bill is calculated.
Appraised Market Value – Eligible Exemptions = Net Taxable Value
Net Taxable Value / 100 x Combined Local Tax Rate = Tax Bill
Your tax bill depends on two things. Your local tax rate and your property value. Local officials set your local tax rate each year. The Collin County Appraisal District determines your property value each year based on the housing market.
If the housing market in your area increases, your property value will increase as well. This can raise your tax bill even if your local tax rate stays the same. So if your local tax rate increases and your property value rises, you can see a large jump in your tax bill.
What This Means for Homeowners in McKinney, Frisco, Allen, Plano and Prosper
Depending on the city you live in, you may see a larger jump in your tax bill.
| City | Key Drivers Influencing Tax Liability |
| Frisco & Prosper | Rapid growth, heavy infrastructure & ISD bond debt |
| McKinney & Allen | Balanced growth, updating public services & facilities |
| Plano | Mature tax base, commercial footprint offsets rates |
- Frisco and Prosper have seen a large increase in population. You may see a higher tax bill due to new ISD bonds and local improvements.
- McKinney and Allen have also seen significant growth in recent years. Your property taxes can be affected by new ISD bonds and local improvements.
- Plano has seen less growth than the other cities listed. But you can still see an increase in your property tax bill.
Check your local ISD and city tax rates to see how they may affect your tax bill.
How Property Tax Protests Can Help Reduce Your Tax Burden
You are unable to lower your local tax rate. But you can lower your property value by filing a Texas property tax protest.
Property Tax Protest: Step by Step
- Review — Examine your annual Notice of Appraised Value.
- File — Submit a formal protest before the May deadline.
- Gather — Collect sales comps, repair quotes, & evidence.
- Informal Review — Discuss valuation discrepancies with an appraiser.
- ARB Hearing — Present your evidence to the Appraisal Review Board.
Every year you will receive a notice from the county showing your home’s market value. If you feel that your home was appraised too high, you can file a property tax protest. By lowering your home’s market value, you can decrease your tax bill.
Other Ways to Lower Your Property Taxes in Texas
There are many ways you can lower your property taxes. Make sure you take advantage of all the exemptions you qualify for.
- General Residence Homestead Exemption: This is a must if you live in your home. It lowers the value of your home that your ISD taxes. It will limit your home’s value increase to 10% per year.
- Over-65 or Disabled Exemption: If you are over 65 or disabled, you can receive a lower tax rate. You can also freeze your home’s value to limit how much your ISD taxes can increase.
- Disabled Veteran Exemption: If you are a disabled veteran, you may qualify for up to a 100% exemption on your property taxes.
- Home Conditions: If your home has any structural damage or deferred maintenance, you can use this as proof when filing a property tax protest.
Call On Hegwood Group | Your Partner in Property Tax Reduction
As property values continue to rise across Collin County TX, homeowners, investors, and commercial property owners may face higher property tax obligations. Understanding how your property is assessed, planning for potential tax increases, and reviewing your valuation for accuracy are important steps in protecting your financial interests.
The Hegwood Group helps Collin County property owners navigate the complexities of the property tax process with experienced guidance, valuation reviews, and strategic property tax consulting services. Whether you need assistance preparing your budget for rising property taxes, evaluating your assessment, or exploring opportunities to reduce your tax burden through the protest process, our team is here to help. By taking a proactive approach, property owners can make informed decisions, avoid surprises, and better prepare for future tax changes in Collin County and throughout the DFW area.
Contact The Hegwood Group today to learn how our property tax consulting professionals can help you develop a strategy for managing property tax increases and protecting your property’s long-term value.
FAQs About the Collin County Tax Increase
Q. Why did Collin County increase property taxes?
The Collin County Commissioners voted to increase property taxes to help cover the cost of new infrastructure projects. They have seen a large population increase and need to expand services.
Q. How can I lower my property taxes if the tax rate increased?
Although you can’t lower your local tax rate, you can file a property tax protest. If you are able to lower your home’s market value, you will pay less in property taxes.
Q. When is the deadline to protest my property taxes in Collin County?
You have until May 15th or 30 days after your notice was mailed to you. Whichever comes last.
Important Note: The information provided in this article is intended for general discussion purposes only. Readers should consult a qualified property tax consultant for accurate and personalized advice regarding property taxes, as this article should not be relied upon as a substitute for professional guidance.
