🏡 Homestead Exemption

A lot of new neighbors ask how the homestead exemption works. Here's a clean, up-to-date walkthrough. It lowers your property taxes and, in Texas, it's free to file.

Step 1 — Get your Texas driver's license address right first

Your homestead can't be filed until your Texas driver's license (or state ID) address matches your new home address. So sort the license first. There are two paths depending on where you're coming from.

A) You already have a Texas license (moving within Texas)

• Use the TxT (Texas by Texas) app to update your address online, around $11.

• No office visit, no new photo. You get a PDF / temporary license instantly — that's all you need to file homestead.

B) Moving from out of state (or your very first Texas license)

• You can't use the TxT app for this — a first Texas license has to be done in person.

• Book a DPS appointment ahead of time at dps.texas.gov. Walk-in waits are long. New residents have 90 days after moving to get a Texas license.

• Bring proof of identity, your Social Security number, and two proofs of Texas residency (closing docs, a utility bill, etc.); vehicle docs too if you're registering a car.

• They hand you a temporary paper license on the spot — you can file your homestead with that right away. No need to wait for the plastic card in the mail.

Step 2 — File the homestead exemption (free)

You don't even have to drive there anymore. File whichever way is easiest:

• Online: Collin CAD Taxpayer Portal at forms.collincad.org (fastest)

• In person / drop-box / mail: Collin Central Appraisal District, 250 Eldorado Pkwy, McKinney, TX 75069

What you provide:

• A copy of your Texas license or ID (temporary is fine) with the address matching the home.

• Owner names at 100% ownership each for you and your spouse.

Questions? Collin CAD: (469) 742-9200.

Step 3 — Owner name change (builder → you): optional, do it whenever

On a new build, Collin CAD may still list the builder as the owner for a while after closing. You can switch it to your name whenever you get to it — some neighbors do it right away, others handle it after moving in. It's really just for your property/homestead records, so there's no rush.

For school registration you do NOT need the appraisal district to show your name

McKinney ISD accepts any of these as proof of residency:

• A current utility bill (gas, water, or electric) in your name

• A signed home purchase contract showing the closing date, or your closing documents

• A signed lease

Look up your property record anytime at collincad.org/propertysearch.

Deadlines & timing (the part people miss)

• File between January 1 and April 30 of the tax year for the cleanest processing.

• Late is OK — you can still file up to 2 years after the taxes became delinquent and get it backdated.

• Since 2022, the exemption can be prorated from your move-in date if the previous owner didn't already claim a homestead on the property that year, so new buyers can get partial-year savings.

What to expect on your first tax bill

• Year 1 on a new build is often taxed on land value only (the house wasn't on the rolls yet), so the bill looks low.

• Your lender escrows for the full amount, so you often get a refund check at year-end for the over-collection.

• Heads up: the first-year math can look odd. Partial-year ownership against the $100K ISD exemption and the 20% Collin College exemption doesn't always reconcile cleanly on the statement. Worth double-checking yours, and call Collin CAD if it seems off.