How much higher are Texas property tax rates than California’s?

Let us put the numbers on the table directly. The combined effective property tax rate in Frisco, Texas, covering the city, Collin County, Collin College, and Frisco ISD, runs approximately 1.68% (1.6754%) for FY2026 (City of Frisco). McKinney’s combined rate is approximately 1.75% (1.747147%) for FY2025-26, and Plano’s Collin County portion lands at approximately 1.71% (1.710713%) for the same period (City of McKinney; Collin County; McKinney ISD; Collin College District). California’s average effective property tax rate, by contrast, is approximately 0.7% of market value statewide, a figure held down by Proposition 13’s assessment caps on long-held homes; a new California buyer typically pays an effective 1.1% to 1.2% of their purchase price once the 1% base rate is combined with local voter-approved bonds and assessments (California Board of Equalization, Proposition 13 framework and 1% base levy). Measured average-to-average, the Texas rates are roughly 2.4 times higher on paper.

That is real, and anyone who tells you otherwise is doing you a disservice. But here is what those two numbers alone do not tell you: California’s 0.71% figure describes a state where millions of homeowners pay effective rates far below that because of Proposition 13, and where the rate applies to a assessed value that resets to your purchase price only when a property changes hands. An owner who bought in Brentwood in 2002 for $850,000 is paying taxes on $850,000, adjusted for a 2% annual increase cap, while the same house trades today for $3.4 million. The buyer stepping in at $3.4 million now pays California’s rate on $3.4 million, which is a very different tax burden than the 0.71% statewide average suggests.

Texas also has no Proposition 13-style protection: assessed values can rise with the market. But Texas does have a 10% annual appraisal increase cap on homestead properties, plus a meaningful homestead exemption from school district taxes, and those protections carry real weight in a rising market. The comparison that matters is not rate versus rate in isolation. It is total effective annual cost, across property taxes and income taxes, for your specific income and the specific home you are actually buying.

The sections below walk through each piece of the comparison in the detail it deserves. If you want to jump straight to the numbers for your specific home price, the comparison table builds that picture across three price tiers. If you want to talk through your situation with someone who has walked more than 400 North Dallas families through this exact calculation, call 214.429.4907 or send us a message.

How Texas property taxes are calculated (and why Prop 13 makes the CA comparison misleading)

Texas property taxes are levied by overlapping taxing jurisdictions: the city or town, the county, a community college district, and an independent school district. Each jurisdiction sets its own tax rate, and the combined rate is the sum of all four. For a home in Frisco, that is the City of Frisco rate plus Collin County’s rate plus Collin College’s rate plus Frisco ISD’s rate. The combined Frisco rate of approximately 1.6754% per $100 of assessed value applies to the appraised value set annually by the Collin Central Appraisal District (City of Frisco; Collin Central Appraisal District).

The key phrase there is “set annually.” Texas appraisal districts are required to appraise property at 100% of its market value each year. In practice, values are reassessed on a regular cycle and can change meaningfully year over year in a rising market like North Dallas. However, for homestead-designated properties, Texas law caps the annual increase in taxable assessed value at 10%, regardless of how much the market value jumps. That cap is why a homeowner who bought in Frisco in 2019 and saw their market value rise 40% over three years did not see their tax bill rise 40% in any single year (Texas Tax Code Section 23.23; Texas Comptroller of Public Accounts).

What California’s Proposition 13 actually does

Proposition 13, passed by California voters in 1978, fundamentally restructured how California property is taxed. Under Prop 13, the assessed value of a property is set at its purchase price, and annual increases in assessed value are capped at 2% per year, regardless of actual market appreciation. The property is only reassessed to market value when it is sold (California Board of Equalization; California State Board of Equalization, Proposition 13 overview).

What this means in practice: a longtime California homeowner can be paying taxes on a value far below current market. A homeowner who bought a $600,000 house in the Bay Area in 2005, adjusted upward by 2% annually, is now assessed at roughly $880,000, while the same home sells for $2.2 million today. Their effective tax burden is dramatically lower than a buyer stepping in at $2.2 million and being assessed at that full purchase price going forward.

This is the comparison that matters for a California buyer relocating to Texas: you are almost certainly not comparing your Texas tax rate to some longtime Prop 13 homeowner’s effective rate. You are comparing it to what you would pay in California as a new buyer at today’s prices, which is typically an effective 1.1% to 1.2% of your full purchase price once the 1% base rate, local voter-approved bonds, and any Mello-Roos assessments are added, because Prop 13 benefits you only once you are already in the house, and only over time, not at purchase. The often-quoted 0.7% statewide average describes existing owners, not the deal available to you today.

For a deeper look at how Frisco property taxes break down at the jurisdiction level, our Frisco property tax deep dive covers the components, the exemption process, and the appeal process in detail.

What do Texas vs California property taxes look like by home price?

The table below builds the comparison at three home price tiers: $500,000, $750,000, and $1,000,000. Property tax figures use Frisco’s FY2026 combined rate of 1.6754% for Texas and a 1.1% new-buyer effective rate for California, the realistic starting point once the 1% base rate and typical local add-ons are combined. The state income tax savings column estimates the California state income tax a single filer earning $200,000 in adjusted gross income would pay, roughly $14,000 per year, compared to zero in Texas (California Franchise Tax Board; Texas Comptroller of Public Accounts). The net annual advantage column is the combined picture: higher property taxes in Texas, offset by zero state income tax.

Notes: Texas property tax figures use Frisco’s FY2026 combined rate of 1.6754% (City of Frisco) applied to full purchase price before homestead exemption. After filing the homestead exemption (mandatory $140,000 reduction from school taxes plus Frisco’s 20% city exemption), effective bills drop further. California figures use a 1.1% new-buyer effective rate on the purchase price, reflecting the 1% Proposition 13 base levy plus typical local voter-approved bonds and assessments; the frequently quoted ~0.7% statewide average reflects long-held Prop 13 assessments, not a new purchase (California Board of Equalization).

State income tax savings estimate is based on California’s marginal rate schedule for a single filer with $200,000 AGI, whose 9.3% bracket begins at roughly $70,600 of taxable income, producing roughly $13,000 to $15,000 in state income tax annually; Texas has no state income tax (Texas Comptroller of Public Accounts; California Franchise Tax Board, 2025 schedule). The federal SALT deduction cap of $10,000 applies in both states and is not included, as it applies equally (Internal Revenue Service, Publication 17). Individual results vary significantly by income, filing status, and deductions. This table is for illustration only; consult a CPA for your specific tax position.

For professionals earning above $200,000, the income tax savings widen considerably. California’s top marginal rate reaches 13.3% on income above approximately $1 million, and the 9.3% bracket begins at roughly $70,600 for a single filer. A California professional earning $350,000 annually is paying roughly $28,000 to $32,000 in state income tax each year before any federal considerations (California Franchise Tax Board). That sum alone covers the property tax differential for a $750,000 Texas home several times over, and it recurs every year of ownership.

Buying a house is a lot like eating an elephant. You do it one step at a time. The property tax rate is usually the first bite that stops California buyers cold, but when you work through the full picture, most of them look up and say, “Why did I wait this long?”

For McKinney and Plano buyers, the rates are comparable to Frisco. McKinney’s combined rate is approximately 1.75% (McKinney ISD; City of McKinney; Collin County; Collin College District), and Plano’s Collin County portion runs approximately 1.71% (City of Plano; Collin County; Plano ISD; Collin College District). The income tax math is identical regardless of which North Dallas city you choose, because the benefit is statewide. If you are comparing North Dallas cities on a tax basis, the differences are measured in tenths of a percent. The income tax savings measure in the tens of thousands.

How much state income tax do California professionals actually save in Texas?

Texas has no state income tax. California’s top marginal rate is 13.3%, the highest of any state in the country, applying to income above approximately $1 million for single filers. But the brackets below that threshold are where most North Dallas relocators actually live: the 9.3% bracket begins at roughly $70,600 of taxable income for single filers, and roughly $141,200 for married couples filing jointly (California Franchise Tax Board, 2025 schedule), which means a dual-income household earning a combined $250,000 is paying a 9.3% marginal rate on the upper portion of that income.

The math for a household earning $300,000 in California, filing jointly, runs approximately $19,000 to $21,000 in state income tax per year. In Texas, that is $0. The same household buying a $750,000 home in Frisco at the 1.6754% combined rate pays approximately $12,566 in annual property taxes before the homestead exemption, and roughly $10,500 to $11,000 after it. The net position: the Texas household keeps roughly $15,000 or more per year than the equivalent California household, even after absorbing the higher property tax bill (Texas Comptroller of Public Accounts; California Franchise Tax Board).

For incomes at $400,000, $500,000, or above, the gap widens significantly. A California household at $500,000 in combined income is paying roughly $38,000 to $45,000 in state income tax annually, depending on filing status. A Texas household at the same income pays none. Even at a $1,000,000 home where the new-buyer property tax differential between Texas and California is roughly $5,750 per year (Texas at $16,754, California at roughly $11,000), the income tax savings more than close the gap for any household earning above approximately $150,000.

One point that often surprises buyers: the federal SALT deduction cap of $10,000 per year applies in both states equally (Internal Revenue Service, Publication 17). California homeowners frequently believe they are offsetting some of their state income tax through the federal deduction, but for high earners, the SALT cap eliminated most of that offset. The cap applies equally to Texas property tax payers, so it does not advantage either state over the other at the federal level. What it does do is make California’s high state income tax even more expensive in net terms, because very little of it can be deducted federally.

If you want to see how this plays out for your specific income and the specific homes you are considering, call 214.429.4907 and we will walk through the numbers with you. We have done this for more than 400 North Dallas families, and for the vast majority of California relocators, the financial case for Texas becomes clearer, not murkier, the deeper you go.

How does the Texas homestead exemption reduce your property tax bill?

Texas provides a mandatory homestead exemption from school district taxes for all owner-occupied primary residences. That exemption was increased from $100,000 to $140,000 off the appraised value for school district taxation purposes, a change Texas voters approved via constitutional amendment in November 2025 and applied beginning with the 2025 tax year (Texas Comptroller of Public Accounts; Texas Constitution, Article 8, Section 1-b). For a Frisco home appraised at $750,000, the $140,000 school district exemption reduces the taxable value for the Frisco ISD portion of your bill to $610,000, producing meaningful savings on the largest single component of the combined rate.

In addition to the state-mandated school district exemption, individual cities and counties may offer their own exemptions. Frisco adds a 20% city exemption on top of the state exemption for FY2026, meaning that on the city portion of the rate, your taxable value is reduced by an additional 20% of appraised value (City of Frisco). Other North Dallas cities offer varying levels of local exemptions. The Collin County homestead exemption also applies, reducing the county portion of your tax bill (Collin County).

How to file for the Texas homestead exemption

You must file an application with your county’s central appraisal district. For Frisco, McKinney, and Plano (Collin County portion), that is the Collin Central Appraisal District. The deadline is April 30 of the tax year for which you want the exemption. You can file late and still receive the exemption for the year you purchased, provided you file by April 30 of the following year. Applications are available on the appraisal district’s website and require a Texas driver’s license or ID showing your homestead address (Collin Central Appraisal District; Texas Comptroller of Public Accounts).

Once filed, the exemption remains in place as long as you live in the home as your primary residence. You do not need to refile annually. If you sell and move, the exemption follows the property to the new owner only if they refile for their own homestead. Buyers who close in the second half of the year and miss the April 30 deadline can still file by April 30 the following year and receive a prorated benefit. We walk every buyer we represent through this process as part of the closing checklist, because missing it in year one is the most common and most preventable tax mistake new Texas homeowners make.

For additional context on how these exemptions interact with Frisco’s specific rate structure, our Frisco property tax guide covers the exemption impact by assessed value tier with specific dollar examples.

What North Dallas relocators from California are surprised by

After guiding more than 400 North Dallas families through the relocation process, the surprises tend to cluster around the same few points. These are not gotchas. They are the things that do not come up until you are already in contract, which is exactly the wrong time to encounter them for the first time.

The property tax rate is higher than expected, and the bill arrives in one lump

California property tax bills are typically paid twice per year as part of your mortgage escrow. Texas property taxes are also paid via escrow for most buyers, but the combined effective rate is high enough that the monthly escrow line item on a Texas mortgage can genuinely surprise California buyers who have not modeled it. On a $750,000 Frisco home at 1.6754%, the monthly escrow contribution for property taxes alone runs approximately $1,047 per month. For the same home in California at a typical new-buyer effective rate of 1.1%, the equivalent figure is approximately $688 per month. The roughly $360-per-month difference is real and needs to be in your pre-approval calculations (City of Frisco; California Board of Equalization; Freddie Mac mortgage payment modeling guidance).

The January 1 ownership date matters for your first tax year

Texas property tax liability is assessed based on who owns the property on January 1 of each tax year. If you close on a Frisco home on February 1, you are not liable for that full year’s taxes as the new owner. The seller owes the tax for January 1 through the closing date; you owe from the day after closing through December 31. This proration is handled at closing and shows up on your settlement statement. It does not change your ongoing tax obligation, but it is different from how California handles property tax proration, and first-time Texas buyers sometimes misread their first tax bill as a result.

The appraisal district and the tax office are two different entities

In California, the county assessor handles both valuation and tax billing through a single function. In Texas, they are separated. The Collin Central Appraisal District sets the appraised value of your property. The taxing entities, city, county, school district, college district, set their rates. The county tax assessor-collector then sends the actual bill. If you want to protest your appraised value (which Texas law allows every year), you file with the appraisal district, not the tax office. The protest window opens in May and closes May 31 or 30 days after your notice of appraised value is mailed, whichever is later (Collin Central Appraisal District; Texas Tax Code Section 41.44). This is a meaningful right that California’s Prop 13 largely makes moot, but Texas homeowners who use it can reduce their bills materially in years when the appraisal district overestimates market value.

No state income tax means no estimated quarterly payments

California requires quarterly estimated state income tax payments for households with significant income above withholding. Texas requires no equivalent payment at the state level because there is no state income tax to pay. For California transplants who have been making quarterly payments to the Franchise Tax Board for years, this is genuinely disorienting for the first tax season in Texas. The income you earn in Texas from your first day of Texas residency is not subject to California state income tax, provided you have properly established Texas domicile (California Franchise Tax Board, guidance on residency change). California can and does audit residency claims for high-income taxpayers who leave the state, so establishing Texas domicile properly from day one matters. This is a CPA conversation, not a real estate one, but we flag it because it comes up consistently.

HOA fees are common and visible in North Dallas communities

Many North Dallas master-planned communities carry HOA fees ranging from $600 to over $2,400 per year, sometimes split into monthly and semi-annual payments. California buyers who have not dealt with HOAs before sometimes model their Texas cost of ownership from property taxes and mortgage only, and then discover an HOA line item at contract. The HOA disclosures are a required part of Texas contract, and we pull those numbers before you make an offer, not after.

How to model your true monthly payment before you close

The monthly payment that matters is not the one your lender quotes based on principal, interest, and a generic tax estimate. It is the one that reflects your specific address’s combined tax rate, your homestead exemption eligibility, your HOA fees, and your homeowner’s insurance premium. In North Dallas, those four components together often add $1,500 to $2,200 per month on top of a principal-and-interest payment for a home in the $700,000 to $1,000,000 range. Modeling that accurately before you make an offer is the difference between a home that fits your budget and one that stretches it in ways that become clear only after you close.

Step 1: Confirm the specific address’s combined tax rate

Zip code-level tax estimates are not reliable in North Dallas because school district and city boundaries do not follow zip code lines. A home on one side of a street can sit in Frisco ISD; a home on the other side can sit in Lewisville ISD or Little Elm ISD, each with a different combined rate. Always confirm the taxing jurisdictions on the specific property’s appraisal district record before accepting any rate estimate. The Collin Central Appraisal District’s public search tool shows each property’s exact jurisdictions and their current rates (Collin Central Appraisal District).

Step 2: Apply the homestead exemption to the taxable value

The $140,000 school district exemption and any applicable city exemption reduce your taxable value before the rate is applied. For a $750,000 Frisco home, the school district exemption alone reduces taxable value to $610,000 for the ISD portion of the bill. On the city portion, Frisco’s 20% city exemption further reduces the taxable value to $600,000 for that component. The effective property tax cost is lower than the combined rate applied to the raw purchase price suggests (City of Frisco; Texas Comptroller of Public Accounts). Your lender’s escrow estimate should reflect these exemptions if you provide them the correct filing information before closing.

Step 3: Confirm the current year’s actual rate, not last year’s

North Dallas tax rates can shift year to year as school districts and cities adjust for bond elections, budget changes, or state compression requirements under the Texas school finance system. The rate for FY2026 is what matters for a 2026 purchase. Rates published in 2025 may have changed (Texas Comptroller of Public Accounts, Truth-in-Taxation database). The difference between a correct and an outdated rate on a $750,000 home is not trivial. Even a 0.05% rate change produces a $375 per year variation in property taxes.

Step 4: Get a real mortgage payment quote at North Dallas tax rates

Lenders quoting payment estimates from California experience sometimes underestimate Texas escrow requirements. Ask your lender to use the specific combined rate for your address when building the escrow component of your quote. We recommend running a home value comparison across the specific North Dallas cities you are considering before choosing a neighborhood, because the tax rate differential between communities can shift your monthly payment by $200 or more on comparable homes (Freddie Mac; TRERC Texas Real Estate Research Center).

If you want us to build that full monthly payment breakdown for a specific address you are considering in Frisco, McKinney, or Plano, call 214.429.4907. We will pull the actual appraisal district record, confirm the current combined rate, apply the homestead exemption, add a real HOA disclosure, and give you a number you can actually budget against. That is a 20-minute call. Book it here or call us directly.