Comprehensive McKinney Homestead Exemption Guide

Buying or owning a home in McKinney comes with a big question every year: how can you keep property taxes in check without missing a deadline or making a filing mistake? If you plan ahead, the Texas homestead exemption can reduce your taxable value and lower your bill. In this guide, you will learn what the exemption does, who qualifies, when to file, and how it affects your mortgage escrow. You will also get a simple checklist and answers to common scenarios so you can move forward with confidence. Let’s dive in.

What the homestead exemption does

A homestead exemption lowers the taxable value of your primary residence. Lower taxable value means lower annual property taxes across the taxing units that apply to your home, such as the school district, Collin County, the City of McKinney, and any special districts.

Approved exemptions can also help certain homeowners over time. Some exemptions for homeowners who are 65 or older or who have a disability can add extra savings and may create a school-tax ceiling that helps limit future increases.

It is helpful to remember that the exemption affects your taxable value, not the appraisal district’s market value estimate. Your Notice of Appraised Value can still change year to year.

Who qualifies in McKinney

To qualify for a given tax year, you generally must own and occupy the property as your principal residence on January 1 of that year. Texas law allows only one residence homestead per person.

One-home rule

You can claim the homestead exemption on only one property. Investment properties, second homes, and short-term rentals are not eligible.

Additional exemptions

Some homeowners may qualify for additional benefits:

• Homeowners 65 or older or those with a disability can apply for additional exemptions. These can include a school-tax ceiling that helps stabilize a portion of the tax bill.
• Disabled veteran exemptions and certain surviving-spouse benefits may be available. Eligibility and amounts vary and are handled by the appraisal district and local tax office.

If you believe you qualify for one of these, contact the local appraisal district or tax office to confirm what is available and what documentation is required.

When to apply

The homestead exemption is not automatic for a new owner. You must submit an application for your home after you move in.

January 1 occupancy rule

Eligibility hinges on January 1. If you own and occupy the home as your principal residence on January 1, you can apply for that year. If you buy and move in after January 1, your eligibility usually begins the following tax year, assuming you are living in the home on the next January 1.

Key filing window

The typical deadline to file an initial homestead application is April 30 for that tax year. Check the appraisal district’s current guidance each year to confirm the exact date and any updates.

Missed the deadline

If you miss the regular window, many appraisal districts accept late filings. The effective year and any retroactive relief depend on district rules and state law. Ask the appraisal district about late-file options and whether any prior-year benefit can be applied.

How to file in Collin County

You file with the appraisal district that covers your property in Collin County. Most districts offer online filing, as well as mail-in and in-person options.

What you will need

Typical documents include:

• Proof of ownership, such as a deed or closing statement
• Proof of identity and principal residence, such as a Texas driver’s license or state ID with the property address
• Other proofs of residence the district accepts, like vehicle or voter registration showing the same address
• Documentation for special exemptions, such as proof of age, disability, or veteran status, if you are applying for those

Document requirements can vary by district, so review current instructions before you file.

Step-by-step filing

1. Confirm that you owned and occupied the property on January 1 for the year you are applying.
2. Gather your documents, including ID with the property address.
3. Complete the homestead application with the appraisal district for Collin County. File online if available, or submit by mail or in person.
4. Watch for an approval notice. Keep a copy for your records.
5. If approved, provide the approval notice or updated tax bill to your mortgage servicer so your escrow can be adjusted at the next analysis.

New buyers and sellers: common scenarios

You bought and moved in before January 1

If you owned and occupied the home as your principal residence on January 1, you are typically eligible for that year’s exemption. File by the standard April 30 deadline.

You bought after January 1

If you purchased and moved in after January 1, you usually cannot claim the exemption for that current tax year. Plan to apply for the next year, provided you are living in the home on the next January 1.

The seller had a homestead exemption

A seller’s exemption does not transfer to you. It applies only while the seller met the ownership and occupancy requirements. As the new owner, you must submit your own application.

Moving within Texas with an over-65 or disabled exemption

Some protections, such as a school-tax ceiling, may transfer in certain situations when you move. The details depend on the type of exemption and your circumstances. Contact the appraisal district and county tax office for guidance on how these transfers work and what documentation is required.

How the exemption affects escrow and your tax bill

How savings flow to your bill

The exemption lowers taxable value, which lowers the amount used to calculate your taxes. Savings apply to the tax year in which the exemption is granted, subject to filing rules and timing.

Here is a simple way to estimate:

• Taxable value = Appraised value minus exemptions
• Tax owed = Taxable value multiplied by your combined tax rate

Your combined tax rate is the sum of your school district, county, city, and any special districts. Use your current tax statement or appraisal district information to plug in real numbers. Any example should be treated as hypothetical until you verify your precise rates and approved exemption amounts.

Escrow timing with lenders

Most lenders set your monthly escrow based on last year’s bill and expected changes. After your exemption is approved, your lender will typically recognize the lower taxes at the next annual escrow analysis. This can reduce your monthly escrow payment or trigger a refund if you are ahead.

If your exemption is approved midyear, the adjustment may not be immediate. It is a good idea to send your servicer a copy of the approval letter or updated tax bill and ask how they will handle the timing. Policies vary by lender, and you should follow your loan terms.

Practical checklist for McKinney homeowners

• Confirm eligibility: Did you own and occupy the home as your principal residence on January 1 of the tax year?
• Gather documents: Deed or closing statement, Texas driver’s license or ID with the home address, and any proof needed for special exemptions.
• File with the Collin County appraisal district: Use the current homestead form and follow the district’s instructions. Aim to file by April 30, then track your approval.
• Notify your lender: After approval, share documentation with your mortgage servicer and ask about escrow adjustments.
• Review your appraisal notice: When you receive the Notice of Appraised Value, confirm that your exemption is reflected. If you have concerns about value or exemption status, note the protest deadline and process on your notice.

Avoid these common pitfalls

• Assuming the seller’s exemption will carry over to you. It does not. You must apply as the new owner.
• Missing the January 1 occupancy requirement. Your move-in date determines which tax year you can claim.
• Waiting too long to file. The typical deadline is April 30 for that tax year. Late options may exist, but timing affects how savings apply.
• Forgetting your lender. If you escrow, send your approval to your servicer so your next analysis reflects the lower bill.
• Overlooking special exemptions. If you are 65 or older, disabled, or a disabled veteran, ask the appraisal district about additional benefits and required documents.

Local context for McKinney and Collin County

McKinney homeowners deal with multiple taxing units, including the school district, the county, the city, and any special districts. Your homestead exemption reduces the taxable value they each use. Because tax rates and optional exemptions can vary by taxing unit, it is smart to review your specific bill and any city or district-level information each year.

If you receive an appraisal or exemption result that does not look right, contact the appraisal district promptly. There is a protest process with defined deadlines on your notice.

Ready for clear next steps

If you are buying in McKinney, set a quick reminder: apply for your homestead as soon as you qualify. If you already own and have not filed, gather your documents and submit your application. A small investment of time now can lead to meaningful savings every year you own the home.

If you want a second set of eyes on your timeline, or you are planning a move and want your purchase strategy and tax calendar aligned, reach out to a local advisor who manages these details every day.

To make your path easier from contract to keys to tax season, connect with Leigh Calvert for local guidance tailored to your move. With a calm, concierge-style approach, you will have clear steps, reminders, and resources so nothing gets missed. Let’s make the numbers work for you and your next home in McKinney.

Leigh Calvert

FAQs

What is the Texas homestead exemption in simple terms?

• It reduces the taxable value of your primary residence, which lowers your annual property taxes across the local taxing units that apply to your property.

How do I know if I qualify in McKinney for this year?

• You typically qualify if you owned and occupied the home as your principal residence on January 1 of the tax year and you are not claiming a homestead on another property.

I bought my McKinney home after January 1. Can I claim the exemption now?

• Usually no for the current year. Plan to apply for the next tax year if you are living in the home on the following January 1.

The seller had a homestead exemption. Do I get it automatically?

• No. A seller’s exemption does not transfer to you. You must file your own application with the appraisal district.

What is the typical deadline to file in Collin County?

• The standard window runs to April 30 for that tax year, though you should confirm the current-year date and any late-file options with the appraisal district.

What documents do I need when I apply?

• You generally need proof of ownership and proof of identity with the property address, such as a Texas driver’s license or ID, plus any documents for special exemptions.

How does the exemption affect my mortgage escrow payments?

• Your lender will usually adjust escrow at your next annual analysis after the exemption appears on your tax bill. Timing varies, so send your approval notice to your servicer and ask about next steps.

Are there extra benefits for owners 65 or older, disabled homeowners, or disabled veterans?

• Yes. Additional exemptions may apply and can include a school-tax ceiling. Contact the appraisal district or county tax office to confirm eligibility and forms.

What if my exemption is denied or missing from my notice?

• Contact the appraisal district immediately. There is an appeal process through the Appraisal Review Board, and deadlines are listed on your notice.