Texas · Dallas-Fort Worth-Arlington, TX metro area

Buying a home in McKinney, Texas

In McKinney, the median value of owner-occupied homes is $471,800, Collin County's effective property tax rate is 1.58%, a purchase mortgage carried a median $8,398 in total loan costs in 2025, and median gross rent is $1,901 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

McKinney home costs, fact by fact

About McKinney

Buyers in McKinney are looking at a median home value of $471,800, the median value of owner-occupied homes as estimated by owners, not a sale price. 63.8% of homes are owner-occupied, and median gross rent is $1,901 per month. McKinney is part of the Dallas-Fort Worth-Arlington, TX metro area, ranked 4th among U.S. metro areas.

Reading the McKinney figures

Start with the tax bill, because it shapes the cost of owning in McKinney as much as the sticker value does. Collin County reports a median annual property tax of $7,521, charged at 1.58% of value, and homes across the county carry a median value of $475,600. That is a heavy line for any household, and it grows with every price step. McKinney's own owner estimate of $471,800 lands just under that county figure, so the county numbers are a reasonable stand-in for what a buyer here would face. The Texas median is $318,100, which puts McKinney well above the state line before a single tax dollar is counted.

Inside the 45 covered Texas cities, McKinney belongs to the upper part of the value range without leading it. Frisco reports $642,100. Austin follows at $555,300. The Woodlands comes next, with $511,700. Plano sits just under McKinney, at $465,900. Allen comes to $464,100. Richardson, further down, reports $431,400. Dallas, by contrast, reports $320,700, close to the state median rather than to McKinney. All of these are owners' estimates, not recorded sale prices, so small gaps in this ranking mean little.

Renting tells a similar story. McKinney's median gross rent runs to $1,901 a month. Plano sits lower, at $1,841. Austin sits lower still, at $1,729. Dallas stays lowest of this group, at $1,472. Allen comes to $1,932, Frisco to $2,014, both higher. HUD's Fair Market Rent for the Dallas HUD Metro FMR Area is $1,807 for a 2-bedroom home, with the larger home type listed at $2,275. That is a benchmark for rental assistance, not a market median, and the census rent covers every unit size, so the two figures are not a like-for-like pair.

Most households here own their home: 63.8% do. Frisco reports 65.9%, a little higher, and Allen reports 69.4%. Plano falls to 56.9%. Austin shows 43.4%, and Dallas 42.4%, so McKinney reads as an owner-leaning city, though less so than Allen.

Financing is the last piece. Lenders in Collin County reported 16,816 loans in the 2025 HMDA data; the loan cost at the median was $8,398. The middle band of those loans ran from $5,772 to $12,382, so a buyer's quote can land well above or below the median depending on the loan. McKinney belongs to the Dallas-Fort Worth-Arlington metro area, ranked 4th nationally with 8,344,032 residents, while the city itself counts 227,526. Set the high tax bill against the loan costs when you build a monthly budget, and ask a lender for a written estimate before comparing McKinney with other Texas cities. If renting is the alternative, remember that the city rent already runs above the HUD benchmark.

Calculate for Texas

If you buy

Texas state transfer tax

Texas has no real estate transfer tax. Change the price: the amount is recalculated instantly.

Price$318,100
State transfer tax$0
Share of the price—

Default price: the Texas median value of owner-occupied homes, $318,100 (Census ACS 2025). Rule: No transfer tax exists. Buyers pay county recording fees and a state-set title insurance premium. Who pays: No transfer tax to assign. Recording fees and the title insurance premium appear on the closing statement. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Texas transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Texas state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in McKinney

How much is property tax in McKinney?

Homeowners in Collin County pay a median $7,521 a year in property tax, 1.58% of the county median home value of $475,600 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in McKinney?

Home-purchase mortgages in Collin County carried median total loan costs of $8,398 in 2025; half of the 16,816 loans fell between $5,772 and $12,382 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in McKinney?

Texas has no real estate transfer tax. Article VIII, Section 29 of the Texas Constitution, added November 3, 2015, says no law enacted after January 1, 2016 may impose a transfer tax on a transaction that conveys fee simple title to real property.

Is it cheaper to rent or buy in McKinney?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in McKinney ($471,800) equals 20.7 years of the median gross rent ($1,901 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in McKinney?

Across Texas, the main hazards for home insurance are flood, tornado, wind and hail, and the insurer of last resort is Texas FAIR Plan Association (TFPA). Texas gets more tornadoes than any other state, according to the Texas Department of Insurance; on the coast, windstorm coverage comes from a separate policy, often from TWIA, in 14 coastal counties plus part of Harris County.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Texas rules that apply in McKinney

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Sources

Texas · All states · Federal guides