Property Taxes and Homeowners Insurance in Sherman TX — What Buyers Need to Know in 2026
The Costs Nobody Talks About Enough
You found the perfect home in Sherman. The price is right, the neighborhood feels great, and the layout checks every box. But before you fall completely in love, there are two numbers that will show up every single month for as long as you own that home: property taxes and homeowners insurance. Bob McCranie has seen buyers get surprised by these costs more times than he can count — and his mission is to make sure that doesn't happen to you.
As a 23-year veteran of North Texas real estate with over 1,561 closed transactions, Bob McCranie real estate is built on the philosophy that an informed buyer is a happy buyer. So let's talk about the real numbers.
Property Taxes in Sherman TX: What to Expect
Texas has no state income tax — which is genuinely great news. The trade-off is that the state funds local services largely through property taxes, which means Texas property tax rates can be higher than national averages. In Grayson County, where Sherman is located, effective property tax rates typically run in the range of 1.7%–2.2% of assessed value depending on which taxing entities apply to your specific property.
What does that mean in real dollars? On a $350,000 home, you could be looking at $5,950–$7,700 per year in property taxes — or roughly $500–$640 added to your monthly payment. On a home in the mid-range $400K–$600K bracket, those numbers scale accordingly.
Here's something important: new construction often starts with a lower assessed value in year one, but the county reassesses once construction is complete. Make sure you're budgeting for what the taxes will be after full assessment, not just what they are on day one.
You can also take advantage of the Texas Homestead Exemption once the home is your primary residence, which removes a portion of your home's value from taxation and caps annual assessment increases at 10%.
How Sherman Compares to Other DFW Markets
Here's some good news. Property tax rates in Grayson County are generally comparable to — and in some cases slightly lower than — rates in Collin County, Denton County, and Tarrant County communities. And because Sherman's home values are still lower than Frisco, Plano, or Southlake, your actual tax bill will typically be lower in Sherman even if the rate is similar.
For a deeper look at how Texas property taxes work across different counties and markets, Bob's website has a dedicated tax resource page worth bookmarking.
Homeowners Insurance: Texas Is Its Own Category
Texas homeowners pay some of the highest insurance premiums in the country — and there's a direct reason for it: weather. Hail, windstorms, tornadoes, and the occasional ice storm make Texas a high-risk state for insurers, and those risks are priced accordingly.
In Sherman, homeowners can generally expect to pay anywhere from $2,400–$4,500 per year for homeowners insurance depending on the age, size, and construction of the home, and your chosen coverage level. Newer homes — including Sherman TX new construction — typically qualify for lower premiums due to updated materials and building codes.
A few features can affect your premium significantly:
- Roof age and material: A new impact-resistant roof can lower your premium meaningfully — another reason new construction homes in Sherman can be insurance-friendly
- Pool: Homes with pools typically carry higher liability premiums
- Location relative to flood zones: Waterfront homes and properties near Lake Texoma may require separate flood insurance
- Home security systems: Many insurers discount premiums for homes with gates and monitored security systems
The Full Monthly Payment Picture
Bob McCranie at HomeSmart always insists buyers look at the full PITI picture — Principal, Interest, Taxes, and Insurance — before falling in love with a list price. "I've had buyers who could afford the mortgage but hadn't fully accounted for taxes and insurance. Those two line items can add $700–$1,200 a month to what you're actually paying. We go through that math together before anyone starts making offers."
That kind of up-front transparency is why Bob's 45 five-star Google reviews consistently mention trust and clear communication. Check the Sherman TX market report and review the buying guide to start building your full financial picture before your first showing.
Contact Bob McCranie at HomeSmart | 972-754-0582 | www.TexasPrideRealty.com for a FREE 2026 Market Strategy Session