McKinney Property Taxes, PIDs, and MUDs Explained (2026)

Property tax is the cost that surprises McKinney buyers the most. Two homes at the same price, both with a McKinney mailing address, can have tax bills thousands of dollars apart. The difference comes from which city the home is actually in, which school district it's zoned to, and whether it sits in a PID or a MUD.

I'm a REALTOR and a mortgage loan officer, so I see this from both sides. On the real estate side, I have to explain it to buyers before they write an offer. On the lending side, the tax and PID figures go straight into the monthly payment and the debt to income ratio. Getting them wrong can turn an approval into a denial.

This guide covers the 2026 adopted rates, the bigger homestead exemption that took effect after the November 2025 election, the over 65 tax ceiling, how PIDs and MUDs work with real McKinney examples, and how to look up any address on Collin CAD. All rates are per $100 of taxable value. For the bigger picture on living here, see my guide to moving to McKinney.

The 2026 McKinney Tax Rate Stack

Every McKinney property pays several taxing units. These are the 2026 adopted rates from the Collin County Tax Assessor's 2026 Tax Rates and Exemptions by Jurisdiction.

The McKinney ISD election is a voter approval tax rate election. Early voting ran Oct. 19 to 30, and Election Day is Nov. 3, 2026. The district says its rate has dropped about 28% over five years, from 1.4747 to 1.0664.

Combined Rates by Address Type

The Frisco ISD figure uses a 2026 rate of 1.0194 reported in June 2026, which I could not confirm as the final adopted rate. The Allen ISD figure uses its 2026 rate of 1.1037. The Trinity Falls figure uses the 2025 MUD No. 1 rate of 0.9847 because the 2026 MUD rate was still pending when I checked. Prosper ISD sections of west McKinney run higher; its 2025 rate was 1.2141.

Homestead Exemptions in 2026

In November 2025, Texas voters approved Proposition 13, which raised the school district homestead exemption from $100,000 to $140,000, and Proposition 11, which raised the extra school exemption for homeowners 65 or older or disabled from $10,000 to $60,000. Together, a qualifying senior gets $200,000 off the school taxable value.

Cities, counties, and colleges set their own exemptions. Here's what each McKinney area taxing unit offered for the 2025 tax year, per Republic Title's 2025 DFW rate sheet. Confirm 2026 amounts on your appraisal notice.

The City of McKinney does not offer a general homestead exemption. In June 2025, the council kept its over 65 and disabled exemption at $90,000. A council member asked about exploring a general exemption, but none had been adopted as of that report.

How to File for the Homestead Exemption

• You must own the home and live in it as your primary residence on Jan. 1 of the tax year.
• The filing deadline is April 30. Late applications are generally accepted for up to two years, so if you missed it, file anyway.
• Your Texas driver's license or ID usually needs to show the property address.
• Filing is free. File with Collin CAD online, or use the Comptroller's residence homestead application. Ignore mailers that offer to file for a fee.
• Once approved, you generally don't refile unless your situation changes.

The 10% Homestead Cap

Once a homestead exemption is in place, your appraised value can't rise more than 10% a year, plus the value of new improvements. Non homestead property valued at about $5 million or less gets a temporary 20% cap for tax years 2024 through 2026. Investors in McKinney should read my investment property guide for how that plays out.

Over 65 and Disabled Homeowners: The Tax Ceiling

When you turn 65 and have a homestead, your school district taxes are frozen at that year's level. They can go down, but they won't go up unless you add improvements such as an addition. That's in addition to the $60,000 extra school exemption.

The county tax office's rate summary lists a tax ceiling for Collin County and Collin College. I did not find one listed for the City of McKinney, so confirm on your own account. If you're 65 or older and planning a move, ask Collin CAD how your current ceiling would be treated on the next home before you sell.

Example Tax Bills

These are my calculations using 2026 rates and the exemptions above. Real bills depend on the appraised value on Jan. 1, which is often lower than a recent purchase price.

Here's how the $400,000 homestead example breaks down: McKinney ISD on $260,000 is $2,773, the city on the full $400,000 is $1,649, the county on $380,000 is $575, and Collin College on $320,000 is $260. If the McKinney ISD election fails, that same home saves about $82 a year.

Look at the Simpson Crossing and Eastridge rows together. The lower city rates and lower prices look great until you add the PID. Once you add it, the total yearly cost lands close to a pricier home in the city with no PID.

PID vs. MUD: What's the Difference?

Texas requires the seller to give you a PID notice before you're bound by a contract, and MUD notices are required too. If the PID notice comes late, the buyer has remedies, including terminating before closing. I still don't rely on the notice alone. I pull the city's current Service and Assessment Plan for the actual lot.

Simpson Crossing PID (Lowry Crossing)

The Simpson Road PID was created in December 2021 and covers about 135 acres and 538 lots in three improvement areas. Owners pay two separate assessments: a capital installment that repays the bonds and a smaller operations and maintenance assessment.

For example, a 50 foot lot in Improvement Area 1 owes a capital installment of $3,978.12 plus $348.65 in operations and maintenance for 2026 to 2027. The outstanding capital assessment on that lot was $47,911.51. The plan's disclosure schedules estimate that paying it over the full term totals about $106,173, which is why some buyers ask about prepayment. My Simpson Crossing page has the full breakdown.

Eastridge PID (Princeton)

Eastridge's PID is administered by the City of Princeton. On Improvement Area 4 lots, the city's 2025 presentation showed a gross levy of $2,934 on a 40 foot lot, minus a $678 TIRZ offset, for about $2,256 a year net. Fifty foot lots net about $2,527. The bonds are 30 year and mature in 2055. Other improvement areas in Eastridge have different numbers, so ask for the lot's figure. My example bill assumes McKinney ISD, which is what reports show for Eastridge; confirm the ISD for the specific lot on Collin CAD.

McKinney MUD No. 1 and No. 2 (Trinity Falls)

The City of McKinney says Trinity Falls is not in its tax jurisdiction. Owners pay McKinney MUD No. 1 or MUD No. 2 instead of city tax. MUD No. 1's 2025 rate was $0.9847 per $100. The last MUD No. 2 rate I found was $1.05 for 2023. A new Collin County Emergency Services District No. 1, approved by voters in November 2025, covers McKinney's ETJ with a starting rate capped at $0.10 per $100, so check whether it appears on bills for ETJ addresses.

A McKinney Address Doesn't Tell You the Tax Rate

Mailing addresses follow the post office, not city limits or school zones. Simpson Crossing uses a McKinney 75069 address and sits in Lowry Crossing. Eastridge uses McKinney 75071 and sits in Princeton. Trinity Falls is McKinney 75071 with no city tax at all. Craig Ranch is McKinney 75070 and mostly Frisco ISD. Before you compare two homes, look up the taxing units for each one.

How to Look Up a Property on Collin CAD

1. Go to collincad.org and open the property search.
2. Search by street address, owner name, or property ID.
3. Open the property detail. Find the list of taxing jurisdictions or entities. Codes include CMC for the City of McKinney, SMC for McKinney ISD, GCN for Collin County, and JCN for Collin College. A different city or ISD code tells you the address isn't what it seems.
4. Check the exemptions listed. A home that shows a homestead exemption now will lose it after the sale, so the buyer's first bill can be higher than the seller's.
5. Look at the appraised and market values for the current and prior years.
6. For a PID, go to the city's PID page or Service and Assessment Plan. PID installments may not show the way regular taxes do on the CAD page.
7. For a MUD, look for the MUD in the jurisdiction list and read the MUD notice in your contract package.

Your title company also orders a tax certificate before closing. I ask for it early on any home in a PID or MUD.

Frequently Asked Questions

What is the property tax rate in McKinney, TX for 2026?

Inside the City of McKinney and McKinney ISD, the combined 2026 rate is about 1.71% of taxable value. Other school districts, cities, PIDs, and MUDs change that.

Does the $140,000 homestead exemption apply to city taxes?

No. It applies only to school district taxes. The City of McKinney has no general homestead exemption; Collin County gives 5% and Collin College gives 20%.

Do seniors pay property taxes in McKinney?

Yes, but less. Owners 65 or older get an extra $60,000 school exemption, a $90,000 city exemption for 2025, county and college exemptions, and a ceiling on school taxes.

What happens if the McKinney ISD tax election fails?

The district rate would be about 1.0347 instead of 1.0664. On a $400,000 homestead, that's roughly $82 a year less.

Is a PID bad?

Not by itself. It's a known cost with an end date. Compare the total yearly cost, including the PID, to similar homes without one.

Can I pay off a PID?

Usually yes. Ask the PID administrator for a payoff amount. Prepaying avoids future interest, though it's a big check up front.

How do I protest my appraisal?

File a protest with Collin CAD by the deadline on your appraisal notice, using recent comparable sales. I'm happy to pull comps for clients.

Get the Real Number Before You Make an Offer

If you're comparing homes in McKinney, Princeton, Lowry Crossing, or Trinity Falls, send me the addresses through the contact form on this site. I'll check the taxing units, PID or MUD, and HOA, and run the full monthly payment so you can compare them side by side. You can browse McKinney homes for sale or new construction, and see how costs stack up in my cost of living in McKinney guide.

Sources: Collin County Tax Assessor, 2026 Tax Rates and Exemptions by Jurisdiction; McKinney ISD 2026 tax rate release; McKinney ISD 2026 election information; McKinney ISD on five year rate change; Community Impact on McKinney's FY 2026 to 2027 rate; Community Impact on Collin County's 2026 rate; Community Impact on Collin College's rate; Community Impact on Allen ISD; Community Impact on Frisco ISD; Republic Title 2025 DFW tax rates and exemptions; Collin County tax rate summary; FOX 4 on Propositions 11 and 13; Texas Tribune on filing a homestead exemption (Oct. 2026); Ownwell Texas homestead guide; Community Impact on McKinney's over 65 exemption; Simpson Road PID 2026 SAP update; Simpson Road PID 2026 O&M SAP; Lowry Crossing Sept. 22, 2026 minutes; City of Princeton FY 2026 to 2027 budget; City of Princeton Eastridge IA 4 presentation; City of McKinney tax information; Torelli Properties on McKinney MUD rates; Community Impact on McKinney MUD rates; Community Impact on Collin County ESD No. 1; Texas Real Estate Research Center on PID notices; Texas Property Code Section 5.014; Collin CAD exemptions; PJ Zaji NTREIS MLS data, closed sales for 12 months ending Oct. 28, 2026.