By Melissa Avara, Texas Real Estate Broker, Melissa Avara Realty Group | Updated October 2026
Property tax is the number that surprises people moving to North DFW. Texas has no state income tax, so cities, counties and school districts fund themselves with property taxes. Here is how the 2026 rates compare across the five cities Melissa covers, what a typical bill looks like, and how to lower yours.
Which North DFW city has the lowest property tax rate in 2026?
Frisco and Plano have the lowest combined rates of the five, about 1.68% and 1.70% of taxable value for 2026 at typical Collin County addresses. McKinney is close behind at about 1.71%. Prosper runs about 1.94% and Celina about 2%, before any MUD or PID assessments.
How do 2026 property tax rates compare by city?
Rates are per $100 of taxable value for the 2026 tax year at a typical Collin County address in each city's main school district. Every Collin County address also pays Collin County ($0.1514) and Collin College ($0.0812).
City and school district | City rate | School district rate | Combined rate |
|---|---|---|---|
Frisco (Frisco ISD) | $0.4255 | $1.0194 | about 1.68% |
Plano (Plano ISD) | $0.4376 | $1.0328 (proposed) | about 1.70% |
McKinney (McKinney ISD) | $0.4123 | $1.0664 (if Nov. 3 items pass; last year $1.1043) | about 1.71% |
Prosper (Prosper ISD) | $0.5050 | $1.2011 | about 1.94% |
Celina (Celina ISD) | about $0.5717 | $1.2088 | about 2.01% |
A home's school district does not always match its city. Parts of McKinney and Frisco are in Prosper ISD, Craig Ranch in McKinney is in Frisco ISD, and southern Celina is largely in Prosper ISD. Denton County addresses in Frisco, Prosper and Celina use a different county rate. Always check by address.
What is the property tax on a $500,000 home in North DFW?
On a $500,000 homestead with the standard $140,000 school exemption, 2026 bills run about $7,000 a year in Frisco, Plano and McKinney, about $8,000 in Prosper, and about $8,400 in Celina, before MUD or PID taxes or any local homestead exemptions.
- Frisco
about $6,960 a year - McKinney
about $7,060 a year (if McKinney ISD's November 3 propositions pass) - Plano
about $7,070 a year - Prosper
about $8,010 a year - Celina
about $8,370 a year
These are estimates for a primary home. A rental or second home pays tax on the full value with no homestead exemption, so the same $500,000 home would owe roughly $8,400 to $10,000 a year.
How does the Texas homestead exemption work?
If you own and live in the home as your primary residence, school districts must exempt $140,000 of its value, and its taxable value can rise no more than 10% a year. File once with your county appraisal district, either Collin Central or Denton Central, and it stays in place.
You can file once you own and occupy the home. On a typical resale purchase where the seller already had a homestead exemption that year, yours starts the next January 1. Some cities and counties offer additional local homestead exemptions, so check the appraisal district's list for your address.
What property tax breaks do Texans 65 and older get?
Homeowners 65 and older, and homeowners with a disability, get an extra $60,000 school exemption, for $200,000 total. Their school taxes are also capped at the level of the first year they qualify. On a $500,000 McKinney home, the extra exemption alone saves about $640 a year.
That school tax ceiling can transfer as a percentage to a new Texas home, which makes a big difference when you downsize. Owners 65 and older can also defer their homestead taxes while they live in the home. More in the downsizing and 55+ guide.
Do disabled veterans pay property tax in Texas?
A veteran with a 100% service-connected disability rating, or rated individually unemployable, pays no property tax on their homestead in Texas. Veterans with lower ratings get partial exemptions of $5,000 to $12,000 of value, and unremarried surviving spouses can keep these exemptions.
What are MUD and PID taxes?
A MUD (municipal utility district) or PID (public improvement district) is a special district that pays for roads, water lines or amenities in newer communities. Homeowners repay it through an extra tax or assessment on top of the city, county and school rates.
They are common in new Prosper, Celina and north McKinney communities. A MUD or PID can add a meaningful amount to the combined rate, so get the exact figure for the subdivision before you compare homes. Sellers in a MUD must give buyers a district notice before the buyer signs the contract.
How can you lower your property tax bill?
File your homestead exemption, apply for the 65+, disability or veteran exemptions if you qualify, and review your appraisal notice every spring. If the appraised value looks too high, you can protest it with the appraisal district by May 15 or 30 days after your notice, whichever is later.
Recent sales of similar homes are the strongest evidence in a protest. Melissa can pull comparable sales for your neighborhood if you are preparing one.
Talk to Melissa about the full monthly payment
When you compare homes across McKinney, Frisco, Prosper, Celina and Plano, look at the total monthly payment, not just the price. Melissa Avara builds that comparison for every buyer, with the tax rate, MUD or PID and HOA dues for each address. Call or text (214) 280-4317 or send her a message.
Related: McKinney, Frisco, Prosper, Celina, Plano, Relocating to North DFW.
Rates from 2026 tax rate adoptions and proposals reported by the cities, school districts, Collin County and Collin College, August to September 2026. Exemptions from Texas Tax Code 11.13, 11.131, 11.22, 11.26 and 23.23. Estimates are for illustration only. Confirm your exact rates with the Collin Central or Denton Central Appraisal District.
