What's the Cost of Living in McKinney, TX? (2026)

When people ask me what it costs to live in McKinney, they usually mean one of two things: "what will my house payment be?" or "will my paycheck go as far as it does now?" Both are fair questions, and the honest answer is that housing and property taxes drive almost everything here. Groceries and gas look a lot like the rest of Texas. The house is where McKinney gets expensive.

I'm a REALTOR and a mortgage loan officer, so I spend most of my week running these numbers for real buyers. Below I've pulled the current figures from sources I could verify, with dates, and put them into a sample monthly budget for a family buying a median priced home. Where a number depends on my own assumptions, like how much electricity you use, I say so.

If you're earlier in the process and want the big picture on schools, commutes, and neighborhoods, read my guide to moving to McKinney first. If you want to see what your budget buys right now, browse McKinney homes for sale.

McKinney Cost of Living at a Glance

1. The Overall Cost of Living Index

There's no official cost of living index for McKinney alone, so I use the federal one for the metro. The Bureau of Economic Analysis puts Dallas Fort Worth at 103.1 for 2024, meaning prices overall run about 3% above the national average. Goods (groceries, cars, household items) come in at 102.8, close to average. Housing is the outlier at 117.9, almost 18% above average.

That matches what I see. McKinney isn't an expensive place to buy a gallon of milk. It's an expensive place to buy a house compared to most of the country. Keep in mind this is metro data for 2024, the latest year available, not a McKinney specific figure.

2. Income

McKinney's median household income was $124,215 in the Census Bureau's 2020 to 2024 American Community Survey. That's a high number, and it's a big reason prices are where they are. Texas also has no state personal income tax, which matters a lot if you're moving from California, Illinois, or New York. The trade is higher property taxes, which I cover below.

A quick reality check: a $124,215 income is about $10,351 a month before taxes. On the sample budget below, housing alone (mortgage, tax, insurance, and HOA) takes about 37% of that. Lenders can often approve that, but it's tight for a single income household with daycare.

3. Housing Costs

Buying a home

Redfin's McKinney median sale price was $511,000 for August 2026, down 3.5% from a year earlier, with a median of 49 days on market and homes selling at about 97.7% of list price. The Census Bureau's survey based median value for owner occupied homes was lower at $471,800 (2020 to 2024), since it includes older homes that rarely sell.

Price varies a lot by neighborhood. Over the 12 months to October 28, 2026, MLS medians ran from about $326K in Eastridge to $419K in Eldorado Heights, and higher in places like Trinity Falls and Painted Tree. My best neighborhoods in McKinney post has prices for 15 of them, and new construction builders are often where the incentives are right now.

The mortgage payment

Freddie Mac's national average for a 30 year fixed was 7.32% for the week of October 22, 2026. On a $511,000 home:

That's my own math on the national average rate. Your rate depends on credit, loan type, points, and whether a builder is paying to buy it down. As a loan officer, I can shop over 280 wholesale lenders, and the spread between offers is often bigger than people expect.

Property taxes

Texas has no state income tax, and property taxes make up the difference. For 2026, the rates per $100 of value are McKinney ISD 1.0664, City of McKinney 0.412284, Collin County 0.151414, and Collin College 0.081220. Together that's about 1.71%.

On a $511,000 home with the $140,000 state school homestead exemption applied, my estimate is about $7,252 a year, or roughly $604 a month. Collin County and Collin College offer their own homestead exemptions that would trim that a little. The City of McKinney's only homestead exemption, according to Community Impact in June 2025, is $90,000 for owners 65 and older or disabled.

Two caveats. First, part of McKinney ISD's 2026 rate depends on the November 3, 2026 tax rate election; if it fails, the district rate would be about 1.0347. Second, not every McKinney address pays these rates. Parts of the city are in Frisco ISD or Prosper ISD, Trinity Falls pays a MUD instead of city tax, and communities like Simpson Crossing and Eastridge carry PIDs. I break all of that down in McKinney property taxes, PIDs, and MUDs.

Homeowners insurance

The Texas Department of Insurance reports a statewide average homeowners premium of $3,489 for 2025 (preliminary), up from $1,987 in 2020. That's about $291 a month. North Texas hail is a real factor in pricing, and your roof's age and material can move your quote by hundreds. Get quotes during your option period, not after.

HOA dues

Most McKinney subdivisions have an HOA. In my research for the neighborhoods post, dues ran from about $350 a year in Eldorado Heights to roughly $1,000 to $1,600 a year in Stonebridge Ranch and Trinity Falls, with sub associations and special assessments in some places. I use $80 a month in the budget below.

Renting

Rentometer's McKinney averages as of January 2026 were $1,434 for a one bedroom, $1,896 for a two bedroom, $2,421 for a three bedroom, and $2,879 for four or more bedrooms. Single family houses for rent cost more than apartments with the same bedroom count. HAR showed an average of $2,721 a month for rental houses in ZIP 75071 in October 2026. If you're comparing renting to buying, the gap between a $2,400 rent and a $3,700 owner payment is real, so don't let anyone tell you buying is always cheaper month to month. It usually isn't at today's rates. The case for buying is equity and stability over time.

4. Utilities

The City of McKinney provides water, wastewater, trash, and drainage inside city limits. Electricity is deregulated, so you pick a retail provider and Oncor handles delivery.

Using the new base charges and last year's published usage rates, a household using 7,000 gallons a month would pay about $168 for water, wastewater, trash, and drainage. Treat that as a floor, because the usage rates went up too and the city's rate page hadn't posted the new ones when I checked.

For electricity, 1,000 kWh at the state average is about $154. A larger home running AC in August can use far more; at 2,000 kWh the same rate works out to about $308. The Public Utility Commission approved an Oncor delivery rate increase in April 2026 worth about $7 a month for a typical 1,000 kWh customer. I use 1,500 kWh, about $231, in the budget below. Shopping your electricity plan once a year is one of the easiest savings in Texas.

5. Food

I couldn't find a reliable McKinney specific grocery index, so I use the USDA food plans. WTOP reported in July 2026 that the USDA's moderate cost plan for a family of four with two school age kids was about $1,386.70 a month, with the thrifty plan at $1,018.20 and the liberal plan at $1,675.30. With the metro's goods price level near the national average (102.8), those are reasonable starting points for McKinney.

Eating out costs more than the grocery plan suggests, since restaurant meals in McKinney carry the full 8.25% local sales tax.

6. Transportation

Most McKinney households need a car for every driver. Census data puts the mean commute at 27.8 minutes (2020 to 2024). AAA's Texas average for regular gas was $3.82 on October 12, 2026, well under the $4.36 national average that day.

Tolls are the cost people forget. If you commute on the Sam Rayburn Tollway or the Dallas North Tollway, the NTTA TollTag rate rose to 22 cents a mile in July 2025, and drivers without a TollTag pay about double. Twenty toll miles a day for 21 workdays is about $92 a month on a TollTag. West side neighborhoods near SH 121 cut the drive but not always the toll.

One thing that will change local travel: McKinney National Airport's new commercial terminal is set to open November 11, 2026, with Avelo flights to Las Vegas, Fort Lauderdale, Fort Myers, Orlando, and Tampa, according to the city.

7. Sample Monthly Budget

Here's a sample for a family of four buying a $511,000 home with 20% down. Lines marked as assumptions are my estimates, not sourced figures.

The housing lines alone total about $3,783 a month. If you put 10% down, add roughly $350 in principal and interest plus mortgage insurance. If you buy below the median, like the $346K to $419K range in Simpson Crossing or Eldorado Heights, the housing number drops fast, though PIDs in some newer communities eat into that.

How McKinney Compares Nearby

Within Collin County, McKinney sits in the middle on price. Redfin's September 2026 medians were $649,691 in Frisco, $492,515 in Allen, and $840,125 in Prosper, compared with McKinney's $511,000 in August. Tax rates differ too. I go city by city in McKinney vs Frisco, McKinney vs Allen, and McKinney vs Prosper. If you want something cheaper with a similar commute, look at Melissa, Anna, and Princeton.

How I Put This Together

I used the most recent figure I could verify for each line and noted the date. Where McKinney specific data didn't exist, I used the smallest geography available (Dallas Fort Worth metro for price levels, Texas for gas, electricity, and insurance) and said so. Mortgage, tax, and budget figures are my own calculations. Prices, rates, and utility charges change, so check the dates before relying on any of them.

Frequently Asked Questions

Is McKinney expensive to live in?

Housing is the expensive part. The Dallas Fort Worth metro's overall price level was about 3% above the national average in 2024, but housing ran about 18% above. Everyday goods cost close to the national average.

What salary do you need to live in McKinney?

It depends on the house. On a $511,000 home with 20% down at 7.32%, housing costs are about $3,783 a month, about 37% of the median household's gross income. Lenders look at that plus your other monthly debts, and the limit depends on the loan program, so the honest answer comes from running your file. I can do that for you.

How much are property taxes in McKinney?

For 2026, about 1.71% of value inside city limits in McKinney ISD before exemptions. On a $511,000 homestead, that's roughly $7,252 a year after the $140,000 school exemption.

How much is the water bill in McKinney?

The base charges are $21.60 for water and $31.20 for wastewater as of October 1, 2026. With trash, drainage, and 7,000 gallons of use, expect about $168 a month or more.

Is it cheaper to rent or buy in McKinney?

Month to month, renting is usually cheaper right now. A three bedroom rented for an average of $2,421 in January 2026, while owning a median home runs about $3,783 a month in housing costs with 20% down.

Does Texas have a state income tax?

No. Texas has no state personal income tax. Property and sales taxes do more of the work instead.

Want Your Real Numbers?

A sample budget is a starting point. If you tell me your price range, down payment, and the neighborhoods you like, I'll run the full payment with real tax rates, PIDs, HOA dues, and a rate quote from my lender network. Send me a note through the contact form on this site and I'll get back to you.

Sources: BEA Regional Price Parities, all items, Dallas Fort Worth (via FRED); BEA Regional Price Parities, housing (via FRED); BEA Regional Price Parities, goods (via FRED); Census QuickFacts, McKinney; Redfin McKinney housing market; Freddie Mac PMMS via Mortgage News Daily; Collin County Tax Assessor, 2026 Tax Rates and Exemptions by Jurisdiction; McKinney ISD 2026 election information; Community Impact, McKinney 65 plus exemption; Collin County Tax Rate Summary; Texas Department of Insurance; Rentometer McKinney; HAR 75071; City of McKinney residential utility rates; Community Impact, McKinney FY 2026 to 2027 budget; Energy Ogre, Texas electricity Q2 2026; WTOP, USDA food plans; FOX 4, AAA gas prices; KERA, NTTA toll rates; Avalara, McKinney sales tax; City of McKinney, Avelo at McKinney National Airport; NTREIS MLS closed sales, 12 months to October 28, 2026.