Are you leaving money on the table with your property taxes? If you own and live in a home in McKinney, the Texas homestead exemption can lower your taxable value and reduce your annual bill. It is one of the simplest ways to keep more of your budget working for you. In this guide, you will learn what the exemption does, who qualifies, how and when to apply with Collin County, and what to do if your situation changes. Let’s dive in.
What the homestead exemption does
A homestead exemption reduces the taxable value of your primary residence. It does not change tax rates. It lowers the value that local taxing units use to calculate your bill. This can lead to meaningful savings each year for McKinney homeowners.
In Collin County, the appraisal district reviews your eligibility and applies approved exemptions to your account. Tax bills are then issued by the county tax office and other taxing units after values are set.
Who qualifies in Texas
To qualify, your home must be your principal residence on January 1 of the tax year. You must own the property and use it as your primary home. You can claim only one homestead exemption in Texas at a time.
You must be able to prove residency. Typical documents include a Texas driver’s license or ID that shows the property address, plus ownership documents like your deed or closing statement. If your home is in a trust, you may qualify if you are a beneficiary who occupies the property.
Common exemption types in McKinney
Rules and optional amounts can change by taxing unit. Always confirm current details with the appraisal district or the state.
General residential homestead
This is the standard exemption for an owner’s principal residence. It reduces the taxable value for the taxing units that have adopted it. Many school districts and cities or counties adopt some form of general homestead exemption.
Over 65 or disabled homeowner
If you are 65 or older or meet the state definition of disability, you may qualify for additional savings. These exemptions often include a school tax “ceiling,” which limits increases on school district taxes for as long as you continue to qualify. New improvements can affect the ceiling, so confirm details before starting a project.
Disabled veteran and surviving spouse
Texas provides disability-based exemptions for veterans. The amount depends on your VA disability rating. Veterans with a 100 percent disability rating, and in many cases their surviving spouses, may qualify for significant reductions. You will need VA documentation when you apply.
Other specialized exemptions
Texas law includes other exemptions with narrow eligibility, such as surviving spouses of first responders killed in the line of duty. Agricultural or open-space valuation is a different program that reduces value based on productive use rather than homestead status.
How to apply with Collin CAD
You file your application with the Collin County Appraisal District, not the tax collector. Collin CAD reviews eligibility and updates your account.
- Where to file: Start at the Collin County Appraisal District for current forms and instructions.
- What form: Homeowners typically use Form 50-114, the Application for Residential Homestead Exemption, or the equivalent Collin CAD form.
- How to submit: Collin CAD accepts applications by mail, in person, and often online. Check the website for current submission options and addresses.
Documents to gather
- Completed homestead application (Form 50-114 or local equivalent)
- Proof of ownership, such as a deed or closing statement
- Proof of primary residence: Texas driver’s license or ID with the property address; vehicle or voter registration may help
- If applying for over 65, disabled, or veteran exemptions: birthdate verification, SSA documentation, or VA disability rating letter
Deadlines and timing
To receive the exemption for the current tax year, file by April 30 in most cases. If you miss the deadline, the exemption generally takes effect the next tax year. Because rules can change, confirm the current filing deadline with Collin CAD.
The January 1 occupancy rule is key. If you buy a home after January 1, you will usually wait until the next year to qualify for that year’s exemption. You can submit your application early, but the effective date will follow the rules above.
Real-life McKinney scenarios
Bought your home midyear
If you closed after January 1, plan to file so your exemption starts the following tax year. Set a reminder to update your Texas ID to your new address before you submit.
Moving within Texas at 65 or older
Texas allows limited transfers of the school tax ceiling when you move. Contact Collin CAD to confirm the process and forms for transferring your school tax ceiling to your new home.
Converting your home to a rental
If your primary residence becomes a rental or a second home, you must notify the appraisal district. The homestead exemption will be removed and taxes adjusted. Failing to report can lead to penalties.
Divorce or ownership changes
Ownership changes can affect who may claim the exemption. Be ready to provide updated documents to the appraisal district if the deed changes.
Disabled veterans and surviving spouses
File the required VA documentation with your application. Exemption amounts vary by disability rating, and rules are updated periodically. Review current guidance on the Texas Comptroller property tax exemptions page.
If you are denied or need to protest
If Collin CAD denies your application, you have the right to protest the decision to the Appraisal Review Board. Protest deadlines appear on your appraisal notice. Common appeals include residency questions, appraised value disputes, or classification issues. Gather your driver’s license, deed or closing papers, voter or vehicle registration, and any other documents that prove eligibility.
For billing questions after exemptions are applied, contact the Collin County Tax Office. This office handles tax statements, payments, and installment options.
Local resources
- Collin County Appraisal District: applications, forms, protest instructions, and exemptions. Visit the Collin County Appraisal District.
- Collin County Tax Office: tax bills and payment plans. Visit the Collin County Tax Office.
- Texas Comptroller: statewide rules, plain-language guides, and standard forms. See Texas Comptroller property tax exemptions.
- City of McKinney: local government information and contacts. Explore the City of McKinney.
Quick checklist
- Confirm the home is your principal residence on January 1.
- Update your Texas driver’s license or ID to your McKinney address.
- Download and complete Form 50-114 or the Collin CAD equivalent.
- Gather your deed or closing statement and residency documents.
- File with Collin CAD, ideally by April 30. Confirm the current deadline on the website.
- Watch your appraisal notice to verify the exemption is applied.
- If you qualify for over 65, disabled, or veteran exemptions, include supporting documents.
- Notify Collin CAD if your home becomes a rental or if ownership changes.
Taking a few simple steps can lower your tax bill and protect you from future increases on school taxes if you qualify for over 65 or disabled homeowner benefits. If you want help aligning your home purchase or sale timeline with exemption rules, or you want to understand how taxes affect value in different McKinney neighborhoods, reach out. You will get clear guidance and a plan that fits your goals.
Ready to talk strategy for your next move in McKinney or North Collin County? Connect with Jeremy Jordan for a friendly, no-pressure conversation.
FAQs
What is the Texas homestead exemption for McKinney homeowners?
- It reduces the taxable value of your primary residence, which can lower your property tax bill for local units like the school district, city, and county.
Where do I file my homestead exemption in Collin County?
- File with the Collin County Appraisal District, which reviews eligibility and updates your account for the taxing units.
What is the deadline to apply for the current tax year?
- Most homeowners should file by April 30; confirm the current year’s deadline with Collin CAD since dates and practices can change.
Do over 65 or disabled exemptions include a tax ceiling?
- Yes, qualifying owners often receive a school tax ceiling that limits increases on school district taxes while they continue to qualify, subject to rules on improvements.
What documents do I need to prove residency?
- A Texas driver’s license or ID with the property address, plus proof of ownership such as a deed or closing statement; voter or vehicle registration can help as well.
Who do I contact about my property tax bill after my exemption is applied?
- The Collin County Tax Office handles billing, due dates, payments, and installment options.
