McKinney ISD adopts lower property tax rate for 2026-27

McKinney ISD's Board of Trustees has adopted a total property tax rate of $1.0664 per $100 of taxable value for the 2026-27 fiscal year, down from the $1.1043 rate set for 2025-26, the district announced Sept. 17.

That is a reduction of $0.0379, or 3.79 cents per $100 of taxable value. McKinney ISD said the lower overall rate comes even as the adopted Maintenance and Operations rate includes a voter-approved tax rate election component the district described as supporting teacher salaries and student programs.

What changed in the rate

According to McKinney ISD, three factors drove the decrease.

State-mandated M&O compression. As local property values rise, Texas school finance formulas compress Maintenance and Operations rates. The district listed a 2025-26 M&O rate of $0.7343 and a 2026-27 compressed M&O rate of $0.7147.

Lower Interest and Sinking rate. Debt service dropped from $0.3700 to $0.3200. McKinney ISD tied that cut to ongoing management of voter-approved bond obligations.

VATRE add-on to M&O. The district said voters will vote to ratify a Voter-Approval Tax Rate Election that allows an additional $0.0317 on the compressed M&O rate for teacher salaries and student programs. With that component, the adopted 2026-27 M&O rate is $0.7464 — the $0.7147 compressed rate plus $0.0317.

How the pieces add up

McKinney ISD published this breakdown for the adopted 2026-27 total:

• Maintenance and Operations (M&O): $0.7464
• Interest and Sinking (I&S): $0.3200
• Total tax rate: $1.0664

Compared with last year's $1.1043 total, the district said the new rate is lower overall despite the VATRE-related M&O addition. Officials framed the outcome as a lower school district tax rate for the coming fiscal year while still funding operations, programs and capital debt service.

Board framing

Board President Amy Dankel said in the district's announcement that McKinney ISD remains focused on balancing students' educational needs with responsibility to taxpayers. Dankel said the adopted rate reflects both state-mandated tax compression and the district's efforts to manage debt responsibly while continuing to invest in student success.

McKinney ISD officials also said the reduced rate reflects a combination of state funding formulas, the district's debt management strategies and community support for maintaining educational opportunities for students. The Sept. 17 post presented the adoption as continuing a commitment to financial stewardship while supporting student programs, operations and voter-approved capital investments.

Homeowners and other taxpayers looking for the district's official rate table and explanation can find them in McKinney ISD's announcement, "McKinney ISD Adopts Lower Property Tax Rate for 2026-27," on mckinneyisd.net.

Sources

mckinneyisd.net