Frisco ISD Board Adopts 2026 Tax Rate

The Frisco ISD Board of Trustees has adopted the 2026 tax rate of $1.0194 per $100 valuation, which remains unchanged from 2025.

The unchanged rate reflects the District's commitment to responsible financial stewardship while maintaining the resources needed to serve students.

What this means: Frisco ISD’s tax rate is a combination of two parts: a maintenance and operations rate (M&O) and a debt service rate (otherwise known as interest and sinking, or I&S). A flat tax rate year over year may result in a lower tax bill for some and a higher bill for others, depending on their certified property values.

The average home value rose from $551,246 in 2025 to $565,084 in 2026 — with the unchanged tax rate but with a slightly higher home value, that homeowner’s FISD tax bill would increase $141.

What this doesn’t mean: Frisco ISD does not assess property values; county appraisal districts do. When those values rise and local taxes increase, the state reduces its contribution to the school funding formula. A higher tax bill does not result in a corresponding increase in funding per student.

Districts are funded per student, based on their average daily attendance. The state establishes the total amount of state and local funding due to school districts under Texas school finance law. These laws limit school districts’ ability to generate revenue locally.

What is the M&O rate?

The M&O rate is made up of two components:

Tier I - Maximum compressed rate calculated by the Texas Education Agency under the school finance formula. This is not determined by school districts. 2026 rate: $0.6110
Tier II - This rate provides additional local funding through Golden and Copper Pennies, subject to state law and voter-approval requirements.
- Golden Penny revenue is not subject to recapture, or “Robin Hood,” under the state school finance system. The maximum number of Golden Pennies a district can have is eight, and school districts receive 100% of this funding. 2026 rate: $0.08
- Copper Pennies, which are subject to recapture, can be set up to a maximum of nine. 2026 rate: $0.0584

What it covers: M&O taxes fund the general operations of the District — and personnel costs represent about 80% of that budget. M&O funding also pays for utilities, supplies, general maintenance of facilities and all the costs associated with running schools day to day.

What it doesn’t cover: Capital projects like campus updates, replacement of aging or broken fixtures, furniture or technology, and long-term projects.

What is the I&S rate?

The I&S rate, or debt service rate, has been a consistent $0.27 since 2018 and pays for voter-approved bond programs. I&S funds pay the principal and interest on those bonds.

Although voters have to approve an entire bond program, the bonds are only issued as campus projects are needed rather than all at once. Most bonds are issued for 30 years, but the principal amount issued for short-term assets, such as technology, are paid off more quickly.

What it covers: I&S taxes fund the costs generated by the issuance of school building bonds. Bonds pay for capital projects that may include new facilities, renovations of existing facilities, large infrastructure upgrades, technology and security updates, furniture replacement due to wear and tear, flooring replacement, paint, carpet, HVAC system replacement, cooling towers and boilers, etc.

What it doesn’t cover: Anything not outlined in a voter-approved bond package, as well as staff salaries and daily maintenance.

The bottom line

Since 2017, Frisco ISD's tax rate has been reduced by 44.06 cents as a result of proactive tax rate cuts by the district and state-mandated tax compression. The District has maintained the I&S rate at $0.27 during that period while using voter-approved bond funds for capital needs.

These decisions reflect a longstanding focus on fiscal stewardship. As Frisco ISD plans for the future, the District will continue to evaluate needs carefully, prioritize investments, manage debt strategically and seek the greatest possible value from every dollar entrusted to the District.

Learn more

Frisco ISD has always prioritized fiscal responsibility, taking steps in recent years to increase transparency and accountability, as well as:

Passing a balanced budget for the past three years
Hosting a series of public Board budget workshops for the six months leading up to the budget adoption
Saving taxpayers $152.2 million in future interest payments through debt refinancing in 2025-26