Taxes in McKinney
Texas has no state personal income tax -- a statewide, constitutional fact, not McKinney-specific -- and McKinney residents pay a combined sales tax rate of 8.25% (6.25% state, 2.0% city), matching the maximum combined rate Texas law allows. As in the rest of Texas, property tax is where the real state-and-local tax burden actually lands; see the property-taxes topic page for that detail.
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Learn moreNo State Income Tax (Briefly Restated)
Texas has never levied a personal state income tax, and a 2019 constitutional amendment (76% voter approval) converted the prior referendum-required framework into an outright ban, raising the bar for any future repeal to a two-thirds vote in each legislative chamber plus a statewide referendum. This is a statewide fact, not McKinney-specific, but it's a real, direct factor in comparing take-home pay for a McKinney-area job offer against one in an income-tax state.
McKinney's Combined Sales Tax Rate
The combined sales tax rate in McKinney is 8.25% per most 2026 sales-tax rate aggregators reviewed (SalesTaxHandbook, Avalara): Texas's 6.25% state base rate plus a 2.0% City of McKinney local rate, together hitting the statutory 8.25% cap on combined state-and-local sales tax that Texas law allows anywhere in the state. One source (SalesTaxGuide) cited a modestly different 8.3% figure; treat 8.25% as the better-supported figure across multiple sources, and note that 8.25% is already at the legal ceiling regardless.
No Real Estate Transfer Tax (Statewide Fact)
Texas does not impose a state or local real estate transfer tax on the sale of a home -- a genuine, commonly cited difference from many other states (including Florida's documentary stamp tax on deeds). This lowers the closing-cost baseline for a McKinney home purchase relative to states that do levy a transfer tax, though it does not offset the real property tax rate covered on the property-taxes topic page.
Property Taxes (Summary -- See Full Topic Page)
Property tax is the other major state-and-local tax exposure for a McKinney homeowner -- Collin County effective rates were cited anywhere from about 1.58% to 2.3% of market value depending on source and specific jurisdiction this session. See the property-taxes topic page for the full breakdown, homestead exemption mechanics, and the 10% appraisal cap -- detail this summary intentionally does not repeat.
Key takeaways
- No Texas state income tax -- statewide, constitutional, not a McKinney-specific advantage, but a real factor in comparing take-home pay against income-tax states.
- McKinney's combined sales tax rate is 8.25% (6.25% state + 2.0% city) -- already at the statutory maximum Texas allows; one source's 8.3% figure was treated as a likely outlier against multiple sources agreeing on 8.25%.
- Texas has no real estate transfer tax, a genuine advantage versus states like Florida that levy a documentary stamp tax on deeds.
- Property tax is the real state-and-local tax burden -- Collin County effective rates run roughly 1.58%-2.3% of market value depending on source and jurisdiction; see the property-taxes topic page.
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