Texas Homestead Exemption Guide for Collin County & McKinney

Buying a home in McKinney brings plenty of to-dos, and one of the most valuable is the homestead exemption. It can lower your property tax burden, but only if you file correctly and on time. If you just moved or closed in late fall or early winter, the rules around January 1 and the April 30 deadline can feel confusing.

This guide breaks down who qualifies, when to file, how to submit your application to the Collin County Appraisal District, and what to expect with your mortgage escrow. You will also find official resources so you can verify each step. Let’s dive in.

Homestead exemption basics in McKinney

A homestead exemption reduces the taxable value of your principal residence for property tax purposes. It is applied to the appraised value that local taxing units use to calculate your tax bill. In Texas, there is a general residence homestead exemption, plus additional exemptions for homeowners who are age 65 or older, disabled, disabled veterans, and eligible surviving spouses. Some local taxing units may also offer optional exemptions or different amounts.

To qualify, you must own the property and use it as your principal residence. In Texas, residency for the year is generally determined as of January 1. You cannot claim a homestead exemption on more than one property. Married couples are generally limited to one residence homestead, and additional exemptions have separate eligibility rules and documentation requirements.

Appraisal districts typically require proof that you live in the home as your principal residence. Common proof includes a Texas driver’s license or state ID that shows the property address, along with proof of ownership such as a deed or closing statement. Requirements can vary, so always check Collin County’s latest instructions before you file.

What it reduces and what it does not

The exemption reduces your taxable value, which can lower the property taxes you owe. The exact savings depend on the exemption amount or percentage and the combined tax rates from your applicable taxing units. Keep in mind the exemption does not change your appraised market value. If appraisals increase or local tax rates change, your bill can still go up even with an exemption in place.

For detailed statewide rules and definitions, review the Texas Comptroller’s overview of property tax exemptions.

Key dates and why January matters

In Texas, you apply for homestead exemptions through your county appraisal district, not the tax office. The standard filing deadline to receive the exemption for the current tax year is April 30. File as soon as you qualify and have your documentation ready.

Because Texas uses January 1 to determine residency status for the tax year, timing can be critical for new buyers:

• If you close and occupy on or before January 1, you can file for that tax year. Submit your application by April 30.
• If you close after January 1, you typically cannot claim the homestead for that tax year. You would generally be eligible the following year. For special circumstances, contact the appraisal district.

If you miss the April 30 deadline, reach out to the Collin County Appraisal District right away. In some situations they may accept late filings, especially for buyers who acquired the property after April 30. The appraisal district will confirm eligibility and next steps.

How to file in Collin County

You file with the Collin County Appraisal District (CCAD). The appraisal district handles exemptions and appraisal records. For current forms and instructions, visit the Collin County Appraisal District website. The County Tax Office handles payments after bills are issued and does not process exemption applications.

Step-by-step filing process

1. Confirm eligibility. You must own and occupy the home as your principal residence on January 1 of the tax year you are filing for.
2. Gather documents. See the checklist below for proof of identity, occupancy, and ownership.
3. Get the application. Obtain the Residence Homestead Exemption application from CCAD online or by request.
4. Complete the form. Include names, property address or property ID, date of occupancy, and required signatures.
5. Attach proof. Add copies of your Texas driver’s license or ID with the property address, plus proof of ownership such as a deed or closing statement.
6. Submit to CCAD. Send your application and documents via the method CCAD specifies. Keep copies of everything you submit.
7. Watch for updates. CCAD will process your application and notify you if approved or if they need more information. Once approved, the exemption will appear in the appraisal district’s records.
8. Notify your lender. If your mortgage taxes are escrowed, tell your servicer you filed and later provide proof of approval so they can incorporate your exemption during their next escrow analysis.

Simple document checklist

• Signed Residence Homestead Exemption application from CCAD
• Proof of ownership: recorded deed or closing statement
• Proof of identity and residence: Texas driver’s license or Texas ID showing the property address
• If addresses do not match: supporting items like a utility bill, voter registration, or vehicle registration, per CCAD guidance
• Documentation for additional exemptions if applicable: age 65+, disabled, or disabled veteran
• Your contact information

For county-level payment details and tax bill schedules, use the Collin County Tax Office’s official pages at the Collin County Tax Office. Remember, the Tax Office does not process exemption applications. File exemptions with CCAD.

Escrow and your monthly mortgage payment

If your mortgage servicer escrows property taxes, the homestead exemption can reduce your monthly escrow portion after your servicer completes its next escrow analysis. Here is how it works.

• A homestead exemption reduces your taxable value, which lowers your annual property tax amount.
• Mortgage servicers review escrow accounts annually to compare what they collected against the new projected taxes and insurance.
• After CCAD approves your exemption and taxing units calculate reduced taxes, your servicer incorporates the lower amount at the next analysis. They may reduce your monthly escrow, refund any surplus, or credit it to future payments depending on the account balance and regulatory rules.

Timing can vary. Even if you file in January, your servicer may not adjust your payment until the next scheduled escrow review. If you pay property taxes directly rather than through escrow, you will see the benefit as a lower tax bill when it is issued.

What you should do

• Tell your servicer when you file and when you receive approval. Provide copies upon request.
• Ask when your next escrow analysis will occur and how they handle refunds or credits.
• Keep your CCAD approval for your records and for your servicer if there is a delay.

Note that servicers typically maintain an escrow cushion of up to two months of taxes and insurance. Increases in appraised values or changes in tax rates can offset some of the savings from your exemption.

Quick tips for first-time McKinney homeowners

• File early. Do not wait until April 30 if you already qualify. Early filing can reduce back-and-forth and speed up processing.
• Update your ID. If you just moved from out of state, update your Texas driver’s license or ID with your McKinney address. This often streamlines verification.
• Keep copies. Save your application, proof of mailing or online submission, and approval notice.
• Track your appraisal. Watch for your appraisal notice and verify that your exemption appears in CCAD records.
• Use official sources. For forms and instructions, start with the Collin County Appraisal District site and the Texas Comptroller’s exemptions overview.

Ready to make your next move with confidence? If you are buying in McKinney or across the DFW suburbs and want a smooth, guided experience from contract to close, connect with Torelli Properties Group to Schedule Your Personalized Consultation.

FAQs

Who processes homestead exemption applications in Collin County?

• The Collin County Appraisal District processes exemption applications and appraisal records. The Collin County Tax Office handles payments and tax bills but does not process exemptions.

When must I occupy my McKinney home to qualify this year?

• Texas uses January 1 to determine residency for the tax year. If you own and occupy the home on January 1 and file by April 30, you can be approved for that year, subject to CCAD confirmation.

Does closing in early January change my eligibility for this year?

• If you closed and occupied after January 1, you generally cannot claim the homestead for that tax year and would be eligible the following year. Always confirm details with CCAD.

Will my monthly mortgage payment drop right after I file?

• Not immediately. If your taxes are escrowed, your servicer usually adjusts the escrow portion at the next escrow analysis after the reduced taxes are reflected.

Do I need to reapply for my Collin County homestead each year?

• Generally no. Once approved, the exemption remains in place until ownership or eligibility changes. The appraisal district may occasionally request updates.

Can I claim a homestead exemption on a second home or rental?

• No. A residence homestead exemption applies only to your principal residence.

Where can I find official forms and instructions for Collin County?

• Use the Collin County Appraisal District website for current applications and filing guidance. For tax bill and payment questions, see the Collin County Tax Office.