Frisco Property Taxes: A Homebuyer Guide

Buying in Frisco and trying to make sense of property taxes? You are not alone. Taxes shape your monthly payment and long‑term budget, so understanding how they work can save you stress later. In this guide, you will learn how Collin County appraises homes, how tax rates are set, what exemptions you can claim, and how to estimate your monthly costs. Let’s dive in.

How Frisco property taxes work

Who sets value, who sets rates

In Collin County, the Collin Central Appraisal District sets the appraised value of each property as of January 1 each year. If you disagree with the value, you can protest to the Appraisal Review Board, an independent citizen panel. Local taxing units, such as Frisco ISD, the City of Frisco, Collin County, and any special districts, each adopt a tax rate. Your total bill is the sum of all applicable unit rates multiplied by your taxable value.

Why this matters to you

Appraised value and tax rates are separate. A higher appraised value does not always mean a higher bill if combined rates drop or you add exemptions. The reverse is true if rates rise or exemptions change. Knowing both parts helps you plan and make better offers.

Appraisals, notices, and exemptions

Appraisal timeline in Collin County

Texas values property as of January 1. Collin CAD typically mails a Notice of Appraised Value in the spring. Protest season runs in late spring to early summer, while taxing units adopt rates later in the summer or fall. Bills usually arrive in the fall.

Exemptions you can claim

• Residence Homestead Exemption reduces taxable value on your primary residence when approved. You must apply with Collin CAD.
• Over‑65 and Disabled Person Exemptions can add savings and may include a tax ceiling for school taxes on a qualifying homestead.
• Disabled Veteran and Surviving Spouse Exemptions provide substantial relief for eligible applicants.

Exemptions are not automatic. File with Collin CAD promptly after closing and watch for deadlines listed on your appraisal notice.

How and when to protest

If your appraisal seems off, file a protest with Collin CAD. The deadline is generally May 15 or within 30 days of your notice date, whichever is later. You can request an informal review before a formal hearing with the Appraisal Review Board. Bring evidence such as recent comparable sales, photos, or documentation showing errors in the property record. If you remain unsatisfied after the ARB decision, limited appeal options exist, but weigh costs against potential savings.

Calculate and budget your taxes

The basic formula

• Taxable value = Appraised value − approved exemptions
• Annual tax = Taxable value × combined rate
• Monthly estimate = Annual tax ÷ 12

Local rates are expressed per $100 of value. To use a decimal rate, divide the rate by 100.

Example calculation (hypothetical)

• Appraised value: $500,000
• Homestead exemption: $25,000
• Taxable value: $475,000
• Combined rate: 2.2% (0.022)
• Annual tax: $475,000 × 0.022 = $10,450
• Monthly estimate: $10,450 ÷ 12 ≈ $870

This is for illustration only. Use your actual Collin CAD value, your approved exemptions, and the current rates for each taxing unit that applies to the property.

Escrow and monthly payments

Most lenders collect estimated taxes and insurance each month in an escrow account. Your lender bases the escrow amount on anticipated taxes and insurance, not the seller’s old bill alone. Expect an escrow analysis and possible adjustments over time. When comparing homes, include HOA dues, any MUD taxes or fees, and homeowners insurance in your total monthly cost.

New construction vs. resale in Frisco

New construction basics

New homes are typically appraised using market or cost data that reflect the property as of January 1. If a home was completed after January 1, you may see the improvement reflected the next year. The homestead 10 percent cap on taxable value growth applies after you have homestead status for a full year, so new buyers usually start without that prior‑year protection.

MUDs and special districts

Many newer subdivisions in and around Frisco are served by Municipal Utility Districts or other special districts. These districts levy their own property taxes to fund infrastructure bonds and operations. Ask your builder or seller for the district’s current tax rate and bond schedule, and review how that rate affects the combined tax rate for your home.

Resale considerations

Recent tax bills from the seller can help you gauge current costs, but values and rates change each year. After you move in, apply for your homestead exemption as soon as eligible. If major renovations were completed before January 1, the appraised value can reflect those improvements in the next cycle.

Practical steps before and after closing

Before you make an offer

• Pull the property’s latest appraised value and list of taxing units from Collin CAD.
• Request the seller’s most recent tax bill and any MUD documents.
• For new builds, ask the builder for example tax bills for similar homes in the same subdivision.

During the option and closing period

• Confirm whether the property is in a MUD and request the district’s current levy and bond information.
• Ask the title company how taxes will be prorated at closing and when to expect your first full bill.
• Coordinate with your lender on escrow setup and monthly estimates.

After you purchase

• File your homestead exemption with Collin CAD as soon as you qualify.
• Watch for your spring appraisal notice and be ready to request an informal review or protest if needed.
• Track your escrow statements and adjust your budget as rates or values change.

Common pitfalls to avoid

• Relying only on the seller’s bill. It may not reflect your exemptions or current rates.
• Missing the protest deadline. Mark your calendar when the notice arrives.
• Overlooking MUDs or special districts. These can materially change your combined rate.
• Delaying your homestead filing. Late filing can postpone savings.
• Ignoring insurance and HOA dues. These affect your true monthly cost.

Work with a local advisor

Understanding Frisco property taxes is key to a smooth purchase and a stable budget. A clear plan around appraisal timing, exemptions, MUDs, and escrow helps you compare homes with confidence. If you want a guided, concierge experience from search to closing, the J. Klefeker Group is here to help you coordinate details and connect with the right local resources. Ready to talk next steps? Reach out to the J.Klefeker Group.

FAQs

When will I get my first Frisco tax bill after buying?

• Taxes are typically billed in the fall for that tax year. You will usually see prorations at closing and then receive your first full bill the following fall, depending on your closing date and county billing.

How do I apply for a homestead exemption in Collin County?

• After you establish the home as your primary residence, file the residence homestead application with Collin Central Appraisal District and watch for posted deadlines.

What is the deadline to protest my appraisal in Collin County?

• You generally must file by May 15 or within 30 days of the date on your appraisal notice, whichever is later. Always check the exact deadline on your current notice.

Do new Frisco homes have higher taxes than resales?

• Not always, but new homes often start at full market value without prior‑year homestead caps, and many new areas include MUDs that add to the combined rate. Compare recent examples in the same subdivision.

How do MUDs affect my Frisco property tax bill?

• A MUD adds its own tax rate for bond debt and operations, which increases your total combined rate. Review the district’s rate breakdown and bond history when budgeting.

How should I estimate my monthly payment for taxes?

• Use the formula: taxable value times the combined rate equals the annual tax, then divide by 12. Your lender will also estimate a monthly escrow based on anticipated taxes and insurance.