Plano ISD tax rate dips, but average bills may rise
Plano ISD's proposed rate is dropping again, but the average home's school tax bill is projected to rise to $4,827 as appraisals climb.
Plano ISD homeowners may see a lower tax rate next year and still end up with a bigger bill. The district’s proposed 2026-27 property tax rate would fall to $1.0328 per $100 of appraised value, down about 0.65% from this year, but the average residence is still projected to owe $4,827 to Plano ISD, up from $4,670, because the average home value is expected to rise from $612,000 to $618,000.
That gap is the part many families feel most directly. A homeowner whose taxable value stayed flat at $500,000 would pay about $5,198 under the current rate and about $5,164 under the proposed one, a drop of roughly $34. But if that same home’s value rose to $505,000, the bill would climb to about $5,216 even with the lower rate. In Plano ISD, the rate cut does not automatically translate into relief when appraisals keep moving upward.
At a May 19 board meeting at the district administration building, 2700 W. 15th Street in Plano, Chief Financial Officer Courtney Reeves said the district was heading into fiscal year 2026-27 with a roughly $44 million deficit budget. District staff projected about $561.9 million in expenditures and $517.1 million in net revenue, and Plano ISD expects to lose 2,008 students next school year. The recapture bill, which sends part of district tax revenue back to the state because Plano ISD is considered property rich, was projected to hit $132.54 million, about $14 million more than in FY 2025-26.
The district’s tax rate has fallen every year since 2018-19, when it stood at $1.439. The current reduction is being driven largely by state-mandated tax-rate compression, alongside the recapture system that limits how much local wealth stays in the district. For homeowners, that means the school-tax line on the bill may look smaller on paper while the total still climbs. Officials are expected to adopt the budget on July 25 and finalize the tax rate on Aug. 18, keeping the focus on how much money Plano ISD can keep for classrooms, and how much gets pulled away under state finance rules.
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