Buying a home in Plano? Property taxes can be the line item that makes your monthly payment feel comfortable or tight. You want a clear picture before you fall in love with a house, and you deserve simple answers that fit the way buying works here in Collin County. In this guide, you’ll learn how Plano property taxes are set, how they flow into your escrow and monthly payment, and what to check before you write an offer. Let’s dive in.
How Plano property taxes work
Property taxes in Texas come from several entities. In Plano, a typical home can be taxed by the county (usually Collin County), the City of Plano, a local school district (often the largest share), Collin College, and sometimes a special district such as a Municipal Utility District (MUD) or hospital district. Your exact mix depends on the property’s location.
Taxes are based on the appraisal district’s estimate of market value as of January 1 each year. Exemptions can reduce the taxable value. Each taxing unit sets its own rate, and the total rate for your home is the sum of those individual rates.
Rates vary across Plano. Two similar homes on different streets can have different combined rates if one sits in a special district or a different school district. If you want the precise list of taxing entities and current rates for a specific address, check the county appraisal district and the county tax office for that parcel, along with the city and school district tax pages.
What creates your tax bill
Appraisal districts publish an annual value for each property as of January 1. Owners typically receive a Notice of Appraised Value in the spring, which starts a short appeal window if they want to protest the value.
Common exemptions include the homestead exemption, over-65 and disability exemptions, and disabled veteran exemptions. These are filed with the appraisal district and can reduce taxable value. Rules and amounts vary by exemption and taxing unit, so verify details with the appraisal district.
Taxing entities adopt their rates later in the year (often late summer or early fall). After rates are adopted, the county issues tax statements in the fall. The annual property tax bill is generally due by January 31 of the following year. Penalties and interest start after the deadline.
If you buy a home midyear, taxes are usually prorated at closing. The seller typically pays for the days they owned the home, and you pay for the rest of the year. Your closing statement will show the exact proration.
How taxes affect your monthly payment
Your mortgage payment often includes four parts: principal, interest, property taxes (if escrowed), and homeowner’s insurance (if escrowed). Lenders estimate your annual taxes and insurance, divide by 12, and add that to your monthly payment.
Escrow accounts are reviewed annually. If actual taxes come in higher than estimated, you may see an escrow shortage and a higher monthly payment. If they are lower, you may see a surplus or a lower escrow amount. Lenders can also hold a small cushion in your escrow, which affects both your initial deposit and monthly amount.
If a property sits in a MUD or other special district, you will see an additional tax levy. These can meaningfully increase the annual bill, so include them in your affordability estimates. HOA dues are separate and usually not part of escrow.
Quick example estimates (hypothetical)
- If a home’s taxable value is $400,000 and the combined tax rate is 2.3 percent, annual tax is about $9,200, or roughly $767 per month added to escrow.
- At the same value with a 2.8 percent combined rate, annual tax is about $11,200, or roughly $933 per month added to escrow.
These are examples only. Actual taxable value and combined rates depend on the property’s exact address and taxing entities.
Planning tips for buyers
A little prep can prevent payment surprises and make your offer stronger.
- During listing review or early escrow:
- Ask the seller or listing agent for last year’s tax bill and any special district disclosures.
- Confirm the exact school district and whether the parcel sits in a MUD or other special district.
- Pre-approval and affordability:
- Ask your lender for a loan estimate that includes monthly taxes and insurance based on the specific address.
- Model a few price points and rate ranges so you can see how taxes change your monthly payment.
- Before closing:
- Check whether the seller has exemptions that you may qualify for after you move in, and plan to file your own with the appraisal district when eligible.
- Review the closing statement for accurate tax prorations and any unpaid taxes.
- After purchase:
- File your homestead or other applicable exemptions promptly if you qualify.
- Expect an annual escrow analysis from your lender and review it carefully if your payment changes.
Address-level differences to watch in Plano
- County lines: Most of Plano is in Collin County, but a small portion is in Denton County. Each county has its own appraisal district and tax office, so make sure you are looking at the right one.
- School districts: Many Plano addresses are in Plano ISD, but some lie in other districts. School taxes are often the largest share of the bill, so confirm the district tied to the property.
- Special districts: Some neighborhoods include a MUD or other special district that adds a separate line item to the tax bill. This is common in fast-growing suburban areas and can raise the effective rate for that address.
What to expect if values rise
If the appraisal district increases your home’s market value, your taxes can rise even if rates do not change. Budget for potential year-over-year increases. If you disagree with the new value, you can protest within the appraisal district’s window using their published procedures.
Your next step
If you want a clear, address-specific estimate of monthly costs, including taxes and escrow, we can help coordinate with your lender and gather the right documents from the seller. For personalized guidance that fits your budget and timeline, connect with Hunter Realty Group. Let’s get a coffee and build your plan.
FAQs
How do I find a Plano home’s exact tax rate?
- Look up the property on the county appraisal district for that county (Collin or Denton) to see the taxing entities, then confirm adopted rates and bills on the county tax office site for that parcel.
Who pays Plano property taxes at closing?
- Texas custom is to prorate at closing based on the days each party owns the home; your closing statement will show the adjustment for the current tax year.
Can I lower my Plano taxes after I buy?
- File any exemptions you qualify for with the appraisal district (for example, homestead, over-65, or disability); previous owner exemptions do not transfer automatically.
What if I disagree with my Plano appraisal value?
- You may file a protest with the appraisal district within the allowed protest window; if needed, the Appraisal Review Board hears valuation disputes.
How do MUDs affect my monthly mortgage payment?
- A MUD adds its own tax levy, which increases your annual tax bill; if you escrow, your monthly payment rises to cover that additional amount.
When are Plano property taxes due each year?
- Counties typically mail bills in the fall, and the annual tax bill is generally due by January 31 of the following year; penalties and interest start after the deadline.
