Collin County Property Tax Increase 2026: What It Means for Your Mortgage Payment in McKinney, Plano, Frisco and Allen

Collin County Commissioners voted 4-1 on September 14, 2026 to raise the county property tax rate for the first time since 1993 — a span of 33 years. The new rate takes effect October 1, 2026, which means if you are buying or already own a home in McKinney, Plano, Frisco, or Allen, your property tax escrow is about to change. I'm Bond Peter Njoku (NMLS #2670329), a mortgage loan officer based in Garland who works with Collin County buyers every week, and I want to break down exactly what this means for your monthly mortgage payment and how you should plan around it.

The county rate itself is a modest increase — from $0.149343 to $0.151414 per $100 of assessed value, a 1.4% change. On its own, that's roughly $5-$8 more per month for a typical homeowner. But here is why I'm writing this post: the county rate is just one of five or six lines on your property tax bill. When you combine the county, city, school district, and any special district rates, the effective total rate in McKinney runs around 1.76% and in Plano around 1.71%. That is what drives your actual PITI payment. And there's a November bond election coming that could layer on more increases. Let me show you the real math.

What exactly did Collin County change on September 14, 2026?

The Collin County Commissioners Court approved the FY 2026-27 budget of $619.6 million — an increase of $20.4 million over last year. To fund the difference, they raised the county property tax rate from $0.149343 to $0.151414 per $100 of assessed value, a 2.4-cent increase on every $100 of value.

County Judge Chris Hill was the sole dissenting vote, arguing that the hike represented a "transfer of wealth" from taxpayers to county employees whose salary increases outpaced taxpayer income growth. The measure passed anyway, 4-1.

Two key things to note: (1) Not every homeowner will see a higher bill — if your appraised value declined, the rate increase may not raise your dollar amount owed. (2) A November 3, 2026 bond election is on the ballot, and if approved it could add up to 4.95 additional cents per $100 by 2031. That would mean a more significant increase down the road.

How much does this add to a Collin County homeowner's monthly mortgage payment?

Your mortgage servicer collects property taxes in your escrow account, dividing your estimated annual tax bill into 12 equal payments added to your principal and interest. Here is how the county rate increase alone translates to monthly dollars at different home prices:

The county-only increase is small. The bigger picture is your total property tax burden. Your full tax bill includes the school district (the largest line — often 0.9-1.1% of value by itself), the city, and the county. Here is what effective combined rates look like across Collin County cities:

What are the effective combined property tax rates in McKinney, Plano, Frisco, and Allen?

As you can see, even after this first rate hike in 33 years, Collin County cities remain significantly lower in combined effective taxes than Dallas or Tarrant County cities. That is one reason Collin County has been one of the fastest-growing counties in the United States. The tax advantage is real, and it persists even with this increase.

How do property taxes affect how much house you can qualify for?

This is the question most buyers never ask until we are in underwriting. Your lender qualifies you based on your total PITI — principal, interest, taxes, and insurance — as a share of your gross monthly income (the front-end DTI ratio). On a $450,000 McKinney home at 7% with 5% down and a 1.76% combined tax rate:

• Principal and interest: ~$2,847/mo (at 7.03%, 30yr, $427,500 loan)
• Property taxes: ~$662/mo (1.76% of $450K ÷ 12)
• Homeowners insurance: ~$380/mo (Texas average rising sharply)
• Total PITI: ~$3,889/mo
• Income needed to qualify (at 43% front-end): ~$9,045/mo gross (~$108,500/yr)

The combined effective rate matters enormously. A buyer who looks at the county rate alone will underestimate their escrow by $500-$600 per month on a $400,000 home. I run a full PITI calculation for every pre-approval I issue — if you want to see what you actually qualify for in McKinney or Plano, text me at 469-545-7180.

Named scenario: first-time buyer in McKinney, fall 2026

I worked with a client last month — a nurse and her husband, combined income of $115,000, looking at McKinney homes in the $380,000-$420,000 range. When we ran their full PITI at a $400,000 purchase price with a 5% down conventional loan at 7.0%, their monthly payment came to approximately $3,810 — including $587 in estimated monthly property tax escrow at McKinney's combined effective rate. Their lender-approved DTI was 44%, so they qualified comfortably. But without building in the full tax estimate from the beginning, they would have underestimated their payment by over $500 per month. That kind of gap can collapse an offer when underwriting catches it.

What should new Collin County buyers know about the homestead exemption?

If you closed on a Collin County home in 2026, you are eligible to file a homestead exemption starting January 1, 2027. The filing deadline is April 30, 2027. Filing reduces your taxable value by $40,000 for the state portion and typically results in $500-$800 per year in total tax savings — that is $40-$65 per month off your escrow. You file with the Collin Central Appraisal District at collincad.org. This is one of the most overlooked steps new homeowners take, and I remind every single closing client about it.

What about the November 2026 bond election — should buyers factor this in?

On November 3, 2026, Collin County voters will decide on a bond package that, if passed, could add up to 4.95 additional cents per $100 of assessed value to the debt service tax rate by 2031. On a $450,000 home, that would eventually add roughly $222 per year — or $18.50 per month — on top of what you are paying today. When I run long-term affordability projections with buyers, especially those purchasing near the top of their qualifying budget, I factor in a conservative assumption of rising taxes. Collin County has historically been well-managed, but five years of a growing county cannot be funded by a flat tax rate forever.