Homeowners in Denton ISD will see a bit of relief on their next tax bill after the board of trustees dialed back the total property tax rate to $1.1528 per $100 of taxable value for FY 2026-27 during their regular meeting Sept. 22.
The move will shave more than 5 cents off the previous year's rate and result in the owner of a median-valued homestead in Denton ISD saving approximately $345 compared to the previous year.
The context
During her presentation to the board, Chief Financial Officer Jennifer Stewart said the FY 2026-27 school year budget was adopted in June based on property value estimates. The district then received certified values in July and was required to submit those values to the Texas Education Agency by Aug. 1. The TEA then assigned the district its maintenance and operations tax rate based on that information.
Stewart said certified values increased nearly $4 billion from the previous tax year, from $31.2 billion to $35.2 billion. Most of that additional value came from new commercial property, personal property and commercial real property.
District documents state the median home value in DISD decreased from $264,592 in FY 2025-26 to $247,061 in FY 2026-27. This decrease in home values is reflected in the property taxes for a median household in the district, which will drop from $3,193.36 to $2,848.12, a savings of $345.
While the district’s total tax rate has fallen by nearly 39 cents since FY 2018-19, teachers and other staff will still receive a pay raise as part of the budget adopted in June.
District documents indicate the decrease should have no effect on the district’s $380 million general fund budget the board adopted in June, which funds a 4% compensation increase for teachers and a 2% increase for all other employees, according to previous reporting.
The background
The TEA states numerous factors, including bond elections and legislative overhauls, can affect changes in school district tax rates. According to DISD documents, the three primary factors driving the FY 2026-27 tax rate are:
State-driven maintenance and operations compression: Under the Texas school finance system, the state automatically compresses a district’s basic M&O rate as local property values climb. This state-mandated adjustment accounts for much of the 5-cent drop in the total rate from the previous year.
Carried-forward Voter-Approval Tax Rate Election pennies: In November 2025, DISD voters approved Proposition A, a VATRE that added 5 cents to the district’s M&O rate to generate roughly $26 million annually and carried into FY 2026-27, according to previous reporting.
A flat interest and sinking rate: The I&S debt service rate remains steady at $0.4800 per $100 of taxable value as the district continues paying down its voter-approved bond obligations on schedule—a rate DISD has held firm for several years.
Quote of note
“Our job as trustees is to be careful with what this community entrusts to us and unwavering about what our students need,” DISD Board President Barbara Burns said. “This rate reflects both the compression the state applies as local values rise and the work our team has done to build a budget that pays our teachers competitively without asking more of our taxpayers.”
