The city of Grapevine approved a tax rate of $0.226817 per $100 valuation for fiscal year 2026-27 at its Sept. 15 meeting.
The details
The approved tax rate determines property tax revenue for the city and is 4.4% lower than the current FY 2025-26 rate of $0.237228 per $100 of valuation.
The approved tax rate is the no-new-revenue rate, meaning the city will generate the same amount of revenue as the previous fiscal year, accounting for any property value changes.
The tax rate is made up of a maintenance and operations rate and an interest and sinking rate.
The maintenance and operations rate is used to fund regular operating costs for the city and is $0.128299 per $100 of valuation.
The interest and sinking rate is used to pay existing city debts and is $0.098518 per $100 of valuation, according to the city.
Put in perspective
This continues the trend of the city lowering its tax rate annually since FY 2020-21, according to previous reporting.
The new tax rate means that a resident whose home has the average taxable value of $393,431 for FY 2026-27 will pay $892.37 to the city. This is a decrease from the $944.87 a resident would have paid in FY 2025-26 with the previous taxable value and tax rate, according to previous reporting.
What they’re saying
Council member Duff O'Dell asked if lowering the tax rate yearly was negatively impacting revenue for the city.
“I know it's a badge of honor to have the lowest rate,” O’Dell said. “I know raising the rate, even just minutely, makes a huge difference in revenue generation for the city. I know we have a zero-sum game budget every year and I know there's a lot of things we deny and we are operating fine but more revenue is always a welcome thing.”
City Manager Bruno Rumbelow said other sources of revenue for the city allow the tax rate to be consistently lowered.
“In terms of our sales tax per capita, we’re doing as well as any city in the state of Texas, that's where we focus, that's where we get our money,” Rumbelow said. “When you look at the hotel tax and the sales tax growth that we have received, that we have earned, frankly, that gives us the ability to stay at the no-new-revenue rate, which has been a policy that we’ve had that's been longstanding.”
Looking ahead
Fiscal year 2026-27 begins on Oct. 1, 2026.
The city approved its 2026-27 budget on Sept. 1, 2026.
