Homestead Exemption in Collin County, TX: How to Save on Property Taxes & How to File

What a Homestead Exemption Actually Is

A homestead exemption is a property tax benefit available to Texas homeowners who live in their home as their primary residence. When you file for it, a portion of your home’s value is excluded from taxation. That means your tax bill is calculated on a lower value, which results in lower taxes.

This exemption only applies to your main residence. Rentals, second homes, and investment properties do not qualify. If you live in the home full time and own it, this exemption is designed specifically for you.

One of the biggest long term benefits is that the homestead exemption also places a cap on how much your home’s appraised value can increase each year for school district taxes. In a fast growing area like Collin County, that cap can make a meaningful difference over time.

If you own a home in Collin County and have not filed for your homestead exemption yet, this is your sign. This is one of the easiest ways to lower your property taxes, and it is something I see homeowners miss all the time. The good news is that filing is free, fairly simple, and once it is done, you usually do not have to think about it again.

Let’s walk through what the homestead exemption is, why it matters here in Collin County, and exactly how to file so you can make sure you are not overpaying in property taxes.

Why This Matters So Much in Collin County

Collin County continues to grow, and with that growth comes rising home values. While appreciation is great for equity, it often leads to higher property tax bills. I see this especially in cities like McKinney, Frisco, Plano, Allen, Prosper, and Celina.

A homestead exemption helps soften that increase. Even the standard exemption can save homeowners hundreds of dollars a year. Additional exemptions can push those savings even higher.

This is one of those small steps that pays off quietly year after year. You do not feel it on day one, but over time, it absolutely adds up.

 

Who Qualifies for a Homestead Exemption

You qualify for a homestead exemption in Collin County if:

You own the home
The home is your primary residence
You live in the home as of January 1 of the tax year
You are not claiming a homestead exemption on another property

One very important detail that trips people up is your ID. Your Texas driver’s license or state ID must show the address of the home you are claiming as your homestead. If it does not match, your application can be delayed or denied.

There are also additional exemptions for homeowners who are 65 or older, disabled, or disabled veterans. These can reduce taxes even further and in some cases freeze certain tax amounts.

 

When You Should File

The filing window for homestead exemptions in Collin County runs from January 1 through April 30.

To qualify for that year, you must own and live in the home on January 1. Filing earlier in the window is always a good idea so there is time to address any issues if something is missing.

Once your exemption is approved, you typically do not need to reapply unless you move, sell the home, or your eligibility changes.

 

How to File for a Homestead Exemption in Collin County

Homestead exemptions are filed through the Collin Central Appraisal District, not through your lender or the county tax office.

Here is how to do it step by step.

Step 1: Get the Application
Download the Residential Homestead Exemption Application, also known as Texas Form 50-114, from the appraisal district’s website.

Step 2: Gather Your Documents
You will need a copy of your Texas driver’s license or state ID showing the homestead address. If you are applying for additional exemptions, include any required supporting documentation.

Step 3: Fill Out the Form
Complete the application carefully. Make sure names, ownership information, and addresses are accurate and consistent.

Step 4: Submit the Application
You can submit the application by mail, in person, or via the physical drop box at the appraisal district office. Email and fax submissions are not accepted.

There is no fee to apply. If anyone asks you to pay to file a homestead exemption, that is a red flag.

Final Thoughts

The homestead exemption is one of the simplest ways homeowners in Collin County can protect themselves from rising property taxes. It takes a little effort up front, but the long term savings are worth it.

If you recently bought a home, are planning to buy, or are unsure whether your exemption is already on file, I am always happy to help point you in the right direction. This is one of those behind the scenes things that can make homeownership feel a lot more comfortable.

If you want, I can also turn this into a shorter version for your website, a carousel for Instagram, or a quick email you can send to clients who just closed.