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Denton ISD sets 2026-27 tax rate at $1.1528, funds 4% teacher raises

The Denton ISD board adopted a lower property tax rate for the upcoming fiscal year, citing state-mandated compression, while maintaining a balanced budget that includes salary increases for staff.

Zane Boyd

September 23, 20262 min read

School tax budget - illustration, Jake Team LLC

The Denton ISD Board of Trustees approved a new property tax rate of $1.1528 per $100 of taxable value for the 2026-27 fiscal year. This figure represents a decrease of more than five cents from the previous year’s rate.

The district attributes the reduction primarily to state-mandated property tax compression, a mechanism that requires local districts to lower their Maintenance and Operations rates as local property values increase.

According to the district, the new rate will reduce the annual tax bill for the owner of a median-valued homestead by approximately $345. This adjustment continues a longer-term trend in local school taxes, with the district’s rate having fallen nearly 39 cents since the 2018-19 school year.

Despite the lower rate, the revenue supports a balanced $380 million General Fund budget that the board adopted in June. This budget marks a $19.9 million shift from the previous year’s deficit plan. The funding allocates a 4% salary increase for teachers and a 2% pay raise for all other district employees.

Barbara Burns, the board president, stated that the trustees aim to manage community resources carefully while meeting student needs. She noted that the rate reflects both the state’s compression rules and the district’s efforts to maintain competitive teacher pay without increasing the tax burden.

Burns described the $345 reduction for typical homeowners as significant for household budgets, emphasizing that the district continues to invest in staff while managing costs.

The 2026-27 tax structure includes three main components. First, the state-mandated M&O compression accounts for nearly the entire five-cent drop in the total rate. Second, the rate retains five permanent cents added by voters in November 2025 through a Voter-Approval Tax Rate Election.

These voter-approved funds generate approximately $26 million annually and remain part of the rate without requiring a new election. Third, the Interest and Sinking rate remains unchanged at $0.4800 per $100 of valuation, ensuring debt service payments for previously approved construction, land, bus, and technology bonds stay on schedule.

Source: wfaa.com.

Sources

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Zane Boyd

Zane Boyd writes about community life, schools, public safety, and local events in Denton.

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