Local Real Estate Broker Perspective
I'm Theresa De La Rosa, the Broker of Covenant Heritage Realty, LLC and In DFW Living Group, serving buyers and sellers across the Dallas-Fort Worth metroplex with a focus on Denton County communities. School taxes are one of the largest ownership costs on a North Texas home, so a change like this matters to anyone comparing homes or budgeting for a purchase. Everything below is based on the cited Cross Timbers Gazette report and the Denton ISD district announcement.
The Short Answer
Denton ISD adopted a balanced budget for 2026-27 that lowers the district's total tax rate to a final adopted rate of $1.1528 per $100 of valuation, down more than five cents from the previous year's $1.2069. The district did it while still funding another round of raises for teachers and staff, turning what had been a deficit into a projected surplus of about $325,542, a $19.9 million improvement over the prior budget.
What is the new Denton ISD tax rate?
The final adopted rate is $1.1528 per $100 of taxable value. The Denton ISD Board of Trustees adopted the rate at its September 22, 2026 meeting, as reported by the Cross Timbers Gazette on October 1, 2026. That is more than five cents lower than the district's 2025-26 rate of $1.2069 per $100.
The rate is expressed per $100 of taxable value, so the actual tax bill depends on the property's assessed value and any applicable exemptions. A lower rate does not by itself fix the dollar amount of any individual bill; the assessed value and exemptions determine how the rate translates into taxes owed.
How is the Denton ISD tax rate made up?
The district's total tax rate is made up of two components: the maintenance and operations (M&O) rate and the interest and sinking (I&S) rate. Per the Denton ISD tax-rate announcement, the adopted $1.1528 splits into a maintenance and operations (M&O) rate of $0.6728 and an interest and sinking (I&S) rate of $0.4800, with the I&S debt-service rate unchanged from prior years. The M&O rate funds the district's day-to-day operations, and the I&S rate is used for debt service. The combined rate is what applies to taxable value on the tax bill.
What does the adopted 2026-27 budget include?
Per the Denton ISD district announcement of June 9, 2026, the adopted 2026-27 General Fund budget is balanced, with about $380.3 million in projected revenue and $380.0 million in expenditures, leaving a projected surplus of roughly $325,542. That is a roughly $19.9 million improvement over the prior year's adopted budget, which had been built with a deficit.
The budget also funds compensation increases for teachers and staff for the 2026-27 school year, continuing the district's support for its educators and employees.
What was the earlier proposed rate?
Denton ISD's earlier proposal, reported in June 2026, called for a total rate of $1.1922 per $100 of valuation. That earlier proposed rate was later lowered. The Board of Trustees adopted the final rate of $1.1528 per $100 on September 22, 2026, once certified property values came in. The $1.1922 figure is the earlier proposed rate, not the rate in effect.
What does a lower school tax rate mean for homeowners?
A lower school tax rate does not automatically mean a lower tax bill. The school district's rate is one component of the total property tax bill, which also includes the county, the city, and any special districts such as MUDs, PIDs, or water districts. Your bill is calculated from the taxable value of your property after exemptions, multiplied by the combined tax rates that apply to the address.
For a home in Denton ISD, the assessed value and your homestead exemption matter as much as the rate. Denton County appraisals are handled by the Denton Central Appraisal District (DCAD). Each spring DCAD sends a Notice of Appraised Value for your property; the notice states the appraised value, the exemptions on file, and the deadline to protest the value with the Appraisal Review Board if you believe it is too high. Check that notice and its protest deadline carefully, because missing the deadline generally means accepting the value for that tax year.
Illustrative Worked Example
To show how the rate translates into dollars, take a home with an appraised value of $500,000 and the standard $100,000 Texas school-district homestead exemption. That leaves a taxable value of $400,000. At the adopted Denton ISD rate of $1.1528 per $100 of taxable value, the school-district portion of the tax would be about $4,611.20 ($400,000 divided by 100, times $1.1528). This is a clearly labeled illustration of the school portion only, before county, city, and special-district rates, and it is not a quote or estimate for any specific property.
For context on how Denton ISD compares with neighboring districts, Lewisville ISD, which serves parts of Flower Mound and surrounding areas, adopted a 2026-27 total rate of $1.0778 per $100 of taxable value (M&O $0.7469 and I&S $0.3309) in August 2026, a rate the district says is its lowest since 1999. Adopted 2026-27 rates for Argyle ISD and Northwest ISD could not be verified at the time of this review, so no comparison figures are published here. School district rates apply by address, so the applicable district depends on the exact property.
My North Texas property taxes and ownership costs guide walks through appraisal districts, exemptions, and how to verify the exact taxes on a specific property. For military and veteran buyers, the VA loans, taxes, HOA, PID and MUD costs guide covers the full ownership picture on top of the mortgage.
Sources & Verification
- Cross Timbers Gazette, October 1, 2026: Denton ISD lowers tax rate in adopted 2026-2027 budget
- Denton ISD district announcement, June 9, 2026: 2026-27 Budget
Last Verified: October 2, 2026. The adopted rate of $1.1528 per $100, the September 22, 2026 board adoption, the comparison with the 2025-26 rate of $1.2069, and the balanced budget figures come from the cited sources. The earlier June proposed rate of $1.1922 is noted only as the earlier proposal that was later lowered. Tax rates, assessed values, and exemptions are subject to change; buyers and homeowners should verify current details with Denton ISD, the applicable appraisal district, and the taxing authorities for the exact property before making a decision.
If you are comparing homes in Denton ISD or anywhere in Denton County, I can help you estimate the real ownership costs, including school taxes, before you make an offer. Schedule a consultation, or call 940-240-3800.
More on Taxes and Ownership Costs
- North Texas Property Taxes & Ownership Costs explains how school, city, county, and special-district taxes combine and how to verify the exact taxes on a property.
- VA Loans in Northlake and Argyle: Taxes, HOA, PID and MUD Costs covers what buyers should budget on top of the mortgage.
Theresa De La Rosa
Broker, REALTOR®
Covenant Heritage Realty, LLC | In DFW Living Group
Disclaimer
Tax rates, assessed values, exemptions, budget figures, and school district decisions can change. Buyers and homeowners should verify current information with Denton ISD, the applicable appraisal district, the taxing authorities for the exact property, lenders, title companies, and professional advisers. This article is for general informational purposes and is not legal, tax, lending, or investment advice. Theresa De La Rosa is licensed in Texas (Broker, License #807294) and leads Covenant Heritage Realty, LLC and In DFW Living Group, serving buyers and sellers throughout the Dallas-Fort Worth metroplex. Equal Housing Opportunity.