For Katy-area homeowners, families and taxpayers, one of the most closely watched numbers in the school district’s annual budget process will stay the same for another year.

The Katy ISD Board of Trustees approved a total property tax rate of $1.1171 per $100 of taxable property value on Sept. 21, keeping the district’s overall rate unchanged for the third consecutive year.

The rate supports a school system serving an estimated 95,000 students across the Katy area, while funding everything from teacher salaries and classroom operations to utilities, student services and payments on existing district debt. Katy ISD had more than 100 campuses and support facilities as of the previous school year.

“Maintaining our overall tax rate for the third consecutive year reflects our commitment to responsible stewardship of taxpayer dollars,” Katy ISD Board President Lance Redmon said. “As student needs continue to evolve, we remain focused on providing high-quality programs and resources for our students and families while being mindful of the financial impact on our community.”

Katy ISD 2026-27 property tax rate stays at $1.1171

The district’s property tax rate is divided into two separate portions:

The Maintenance and Operations rate pays for the district’s day-to-day expenses, including salaries, instructional materials, supplies and utilities. The Interest and Sinking rate is dedicated to principal and interest payments on voter-authorized district debt. Under state rules, the two funding sources serve separate purposes and cannot simply be shifted from one category to the other.

The newly adopted rate is also identical to Katy ISD’s 2025-26 rate.

Does an unchanged Katy ISD tax rate mean the same tax bill?

Not necessarily.

A tax rate remaining flat means Katy ISD is not increasing the amount it charges per $100 of taxable value. An individual homeowner’s actual school property tax bill, however, also depends on that property’s taxable value and applicable exemptions.

Katy ISD reported that the district’s overall taxable property value increased by approximately 1.5 percent for 2026-27. That growth is expected to produce slightly more local revenue even though the tax rate itself is unchanged.

District officials have said the additional local revenue is offset by reductions in state funding, illustrating the relationship between local property values and Texas school finance.

For homeowners trying to determine what the new Katy ISD tax rate means for their own household budget, the key figure is the property’s taxable value after exemptions, rather than market value alone.

Tax rate supports Katy ISD’s $1.48 billion budget

The tax-rate vote follows the board’s Aug. 24 approval of Katy ISD’s $1.48 billion total budget for 2026-27, which includes a $1.17 billion General Operating Fund along with food service and debt service spending.

According to the district, approximately 83 percent of budgeted expenditures are directed toward student instruction, classroom operations and student support.

The spending plan also includes a 1 percent midpoint pay increase for teachers and employees, along with two separate 1 percent lump-sum payments scheduled during the 2026-27 budget cycle.

Budgeted enrollment is approximately 95,000 students, remaining relatively consistent with the previous school year. That represents a shift from the rapid enrollment gains that have shaped much of Katy ISD’s recent growth and campus construction planning.

District continues working to reduce projected budget deficit

Katy ISD adopted its 2026-27 budget with a projected $25.7 million operating deficit, although district administrators have said they expect that gap to shrink and potentially be eliminated through spending efficiencies and actual expenditures coming in below budget.

District officials pointed to a similar pattern during the previous three audited fiscal years, when Katy ISD initially adopted deficit budgets but ultimately finished those years balanced while adding to its fund balance.

That financial balancing act matters for residents because Katy ISD is simultaneously funding current classrooms, employee compensation and student programs while managing the long-term costs associated with operating one of Texas’ largest public school systems.

What happens next for Katy ISD taxpayers

The newly approved 2026-27 Katy ISD tax rates take effect immediately and are expected to appear on property tax statements later this fall.

Katy ISD properties are spread across portions of Harris, Fort Bend and Waller counties. The Harris County Tax Office collects Katy ISD taxes on district properties in Harris County, while the Fort Bend County Tax Office handles Katy ISD properties located in Fort Bend and Waller counties.

For residents, the Sept. 21 vote closes an important part of the district’s annual budget process. The overall rate is staying put, but the larger financial picture remains one to watch as property values, state education funding, enrollment and district expenses continue to shape how Katy ISD pays for local schools.

Katy ISD taxpayers will continue supporting neighborhood campuses, teachers, student programs, facilities and the daily operations behind a district serving tens of thousands of families across the Katy area.

Stay tuned to My Neighborhood News for continuing coverage of Katy ISD, local property taxes, school funding, neighborhood campuses and issues affecting families throughout the Katy community.

By Tiffany Krenek, My Neighborhood News 

Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.

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