Katy ISD maintains tax rate for 3rd consecutive year

Katy ISD residents will not see changes to the district’s tax rate in fiscal year 2026-27. 

The framework

At a Sept. 21 meeting, the Katy ISD board of trustees approved a tax rate of $1.1171 per $100 valuation for FY 2026-27, the same rate the district has adopted since FY 2024-25. 

However, the estimated property tax bill for an average home will climb to $2,900, a 1.93% increase from the FY 2025-26 tax bill due to an increase in home values.

“Maintaining our overall tax rate for the third consecutive year reflects our commitment to responsible stewardship of taxpayer dollars,” Katy ISD Board President Lance Redmon said. “As student needs continue to evolve, we remain focused on providing high-quality programs and resources for our students and families while being mindful of the financial impact on our community.”

A closer look 

Chief Financial Officer Chris Smith said the tax rate includes $0.7271 per $100 valuation for maintenance and operations, which funds the district’s daily operations, and $0.39 per $100 valuation for interest and sinking fund to pay off the district's debts. 

Smith said the rate will generate more tax revenue for maintenance and operations compared to last year's rate due to a 1.5% increase in appraisal values. 

Explained

Smith clarified that, even though the tax rate is static, residents may still have to pay more in taxes if their home values increase. He added that when districts see local revenues go up, state funding decreases. 

“The state legislature does try to offset that through homestead exemption increases or compressing the tax rate,” Smith said.

Smith said raising homestead exemptions is not on the ballot this year, and the values set by local appraisal districts did not rise to a level where the rate could be compressed to compensate for the increase. 

Keep in mind

The approved tax rate takes immediate effect and will appear on tax statements later this fall, officials announced in a Sept. 21 news release.