Property Taxes in Collin County: How They Work on a New Construction Home

By Javed Memon, Real Estate Agent with eXp Realty · November 7, 2026 · Collin County, Texas

I'm Javed Memon, a realtor with eXp Realty here in Dallas–Fort Worth. In Frisco, Plano, McKinney, Allen, Prosper, and Celina, tax is the question new-build buyers most often get wrong — because the first number they are shown is rarely the steady-state number. Here is how I walk clients through it. I am not a tax advisor, so confirm your own situation with your CPA.

First, how the bill is built

The Collin Central Appraisal District values the property. Then each taxing entity that covers your lot sets its own rate, and your tax is the taxable value multiplied by the combined total of those rates.

• Collin County and your city — Frisco, Plano, McKinney, Allen, Prosper, or Celina.
• Your school district — depending on the exact lot, not just the city name on the address.
• Collin College, and any special district on the lot.
• MUD or PID assessments in many newer communities. These pay for infrastructure such as roads and utilities and can sit on top of the regular entities, sometimes billed separately. Ask which structure your lot has.

That is why comparing communities by a county or city rate alone misleads. Compare the total for the exact lot, in writing, every time.

The new-construction trap: the January 1 appraisal

Texas appraises property based on its status on January 1. If your lot was vacant or your home was only part-built on that date, that year's appraisal can reflect the land and the work in place — not a finished house. A builder estimate or a lender's first escrow calculation may be built from that incomplete picture.

Once the home is completed, the next appraisal puts the full house on the roll, and the tax — and the monthly escrow collected to pay it — rises. Before you sign, ask what the monthly cost would be at the full purchase price and the lot's total rate, and budget from that higher answer. At closing, taxes are normally prorated on your settlement statement — ask the title company to explain any credit that assumes the lower, unfinished appraisal.

Exemptions, protests, and the payment calendar

Once the home is your primary residence, file for a homestead exemption with the Collin Central Appraisal District following its current instructions. It lowers the taxable value used by some entities, but it does not freeze a new home at its first-year, land-based value. Investors should not assume it applies to a rental.

Watch for your appraisal notice each spring and read the protest deadline printed on it. Owners can protest the district's value, and for a new build your closing documents and actual purchase price can be relevant evidence. Tax bills are typically issued in the fall and, in Texas, become delinquent after January 31 if unpaid. If your lender pays from escrow, still watch for a shortage when the finished-home appraisal lands — the lender will spread it into later payments.

I pair this check with my guide to HOA fees in new Frisco communities, because HOA dues, taxes, and any MUD or PID are decided on signing day. Start from my homepage for current listings and investor picks and to book a call.

What to ask before you sign

• What is the total tax rate for this exact lot, entity by entity, and is there a MUD or PID? If so, how is it billed and for how long?
• Is the payment estimate based on the land only or on the finished home at its full value?
• Which school district and city actually tax this lot?
• What exemptions can I file for, when, and with which office?
• What happens to my escrow when the completed home is appraised next year?

Frequently asked questions

Why is the first-year property tax bill on a new construction home in Collin County so low?
Because Texas appraises property as of January 1. If your home was not finished on that date, that year's appraisal may reflect the land and only the work completed so far. The next appraisal, on the finished home, is usually much higher — do not budget from the first-year bill.

What makes up the total property tax rate in Collin County?
Every taxing entity on your lot added together: the county, your city, your school district, and Collin College, plus a MUD or PID where the community has one. Compare the total for the exact lot, not one entity's rate.

When do I file for a homestead exemption on a new home?
File with the Collin Central Appraisal District once the home is your primary residence, following its current instructions and deadlines. I am not a tax advisor — confirm eligibility and timing with the district or your CPA.

Can I protest the appraised value of a new construction home?
Yes. Texas owners can protest, generally by the deadline printed on the appraisal notice. Your closing documents and actual purchase price can be relevant evidence for a new build.