The McKinney ISD Board of Trustees has set a total property tax rate of $1.0664 per $100 of taxable value for the 2026-27 fiscal year, a decrease from the $1.1043 tax rate adopted for 2025-26. The new tax rate represents a reduction of $0.0379, continuing the district's commitment to responsible financial stewardship while maintaining support for student programs, operations, and voter-approved capital investments.
"McKinney ISD remains focused on balancing the educational needs of our students with our responsibility to taxpayers," said Board President Amy Dankel. "The adopted tax rate reflects both state-mandated tax compression and the district's ongoing efforts to manage debt responsibly while continuing to invest in student success."
How the Tax Rate Decreased
The reduction in the overall tax rate is the result of three primary factors:
State-Mandated Compression of the Maintenance and Operations (M&O) Rate
The state's school finance system compresses school district tax rates as local property values increase.
2025-26 M&O Rate: $0.7343
2026-27 Compressed M&O Rate: $0.7147
Reduction in the Interest and Sinking (I&S) Rate
The district reduced its debt service tax rate from $0.3700 to $0.3200, reflecting the district's ongoing management of voter-approved bond obligations.
2025-26 I&S Rate: $0.3700
2026-27 I&S Rate: $0.3200
Addition of the Voter-Approved Tax Rate Election (VATRE)
McKinney ISD voters will vote to ratify a Voter-Approval Tax Rate Election (VATRE), allowing the district to add $0.0317 to the compressed Maintenance and Operations rate. This would fund teacher salaries and student programs.
2026-27 Compressed M&O Rate: $0.7147
VATRE Rate: $0.0317
Adopted 2026-27 M&O Rate: $0.7464
2026-27 Tax Rate Calculation
Tax Component Rate
Maintenance & Operations (M&O) $0.7464
Interest & Sinking (I&S) $0.3200
Total Tax Rate= $1.0664
Compared to the prior year's rate of $1.1043, the adopted rate is 3.79 cents lower per $100 of taxable value, resulting in a lower overall school district tax rate despite the addition of the voter-approved VATRE.
McKinney ISD officials noted that the reduced tax rate reflects a combination of state funding formulas, the district's debt management strategies, and the community's support for maintaining strong educational opportunities for students.