Prosper ISD reduces property tax rate for FY 2026-27

Prosper ISD residents will see a slightly lower property tax rate for the upcoming fiscal year.

The PISD board unanimously approved a property tax rate of $1.2011 per $100 of valuation for FY 2026-27 at an Aug. 24 meeting.

The new rate is $0.013 per $100 lower than the FY 2025-26 rate of $1.2141 per $100.

The local impact

PISD’s property tax rate has fallen 28% since 2019, based on district data.

While community members may be frustrated with property taxes, higher property tax payments are a result of higher property values, not higher rates, Chief Financial Officer Keri Croy said.

“The tax rate is going down. It’s the values that are driving those taxes higher,” she said. “When your home is worth more, you have to pay more. It’s not us.”

Zooming out

PISD’s $565.6 million budget for FY 2026-27 has a projected shortfall of $42.2 million, including a $25.1 million shortfall in the general fund, according to previous reporting.

Although district officials are looking for ways to cut costs, PISD’s budget squeeze is likely to continue because the district’s recapture payments are growing while allotments from the state are expected to decrease, Croy said at a July 20 board meeting.

As a property-wealthy district, PISD is required to pay back a portion of its property tax each year to help fund less wealthy districts in a process known as recapture.

The PISD board delegated authority to the superintendent to comply with the district’s recapture obligations for the year at the August meeting.