Government
BY COLBY FARR
McKinney council approves $942M budget, lower tax rate for FY 2025-26
Budget explained
General operations and services by the city are budgeted in McKinney’s general fund, which budgets for $232.2 million in revenues and $232.2 million in expenses. Both revenues and expen- ditures increased $12.7 million over the previous fiscal year, which is driven by an increase in property and sales tax revenues. While the tax rate is lower, the city’s taxable value is increasing from $39.7 billion last year to $43.4 billion in FY 2025-26.
valuation, a slight decrease from last year’s rate. Water rates were increased 4%, and wastewater rates were increased 5%. For residents, that increase will result in a $19.80 base monthly charge for water use and a $28.10 base monthly charge for wastewater use. Volumetric charges by the month were also increased.
McKinney City Council approved a $942 million budget and property tax rate for fiscal year 2025-26 which begins Oct. 1. The budget was approved along with a decrease in the city’s property tax rate and an increase in water and wastewater utility rates. The property tax rate was approved at $0.412284 per $100
McKinney's taxable property value
General fund expenditure sources
General fund revenue sources
$50B $40B $30B $20B $10B $0
Public safety: 48% General government: 22% Public works: 10% Parks and library: 9% Developmental
Property taxes: 52% Sales taxes: 20% Franchise fees: 10% Licenses and permits: 7% Charges and fines: 5% Other: 4% Transfers: 2%
$43.4B
$232.2M total expenditure
$232.2M total revenue
$15.2B
services: 7% Transfers: 4%
SOURCE: CITY OF MCKINNEY/COMMUNITY IMPACT
2025-26
2015-16
SOURCE: CITY OF MCKINNEY/COMMUNITY IMPACT
McKinney's property tax rate history
Diving in deeper
Interest and sinking rate* Maintenance and operations rate*
home values. The average taxable value of a home in McKinney was $552,966 in 2025, according to Collin Central Appraisal District’s 2025 certified totals. At the approved rate, the average McKinney homeowner will pay about $2,280 to the city, according to the budget.
The approved tax rate is composed of two parts. • The maintenance and operations rate, which is $0.276012 per $100 valuation • The interest and sinking rate, which is $0.136272 per $100 valuation While the tax rate is lower than last fiscal year, property owners may pay more due to increasing
$0.5 $0.6 $0.4 $0.3 $0.2 $0.1 $0
$0.52517
$0.41228
2025-26
2018-19
*PER $100 VALUATION
SOURCE: CITY OF MCKINNEY/COMMUNITY IMPACT
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