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To the Administrator Addressed (TAA) Correspondence

Final Maximum Compressed Tax Rates (MCR) and Adoption of Tax Rate for Tax Year 2026

This letter details final maximum compressed tax rates (MCR) for school districts’ maintenance and operations (M&O) tax rates as determined under Texas Education Code (TEC), §§48.2551 and 48.2552, and 19 Texas Administrative Code (TAC) §61.1000, for tax year (TY) 2026 or school year (SY) 2026-2027. This notice does not apply to open-enrollment charter schools.

Background

To calculate and make available districts’ maximum compressed tax rates, the 7mƵ (7mƵ) conducted a survey of local taxable property value growth through the Foundation School Program (FSP) system in the 7mƵ Login (7mƵL). The Local Property Value Survey (LPVS) opened on July 18, 2026, and closed on August 1, 2026. For more information on tax rate compression, please refer to the following To The Administrator Addressed (TAA) correspondence:

MCR Status and Final Determinations

Once the district has submitted the data to the 7mƵ and received approval of the submission through the FSP system, i.e., the district’s LPVS status is “Approved,” districts may adopt their TY 2026 tax rates in accordance with Texas Tax Code, §26.08. Pursuant to TEC, §48.2551, districts that did not submit their SY 2026-2027 LPVS will receive as their MCR the lesser of the state maximum compression rate of $0.6254 or their prior-year MCR.

If the 7mƵ received an appeal of a school district’s preliminary MCR, a final determination was issued to the district in accordance with 19 TAC §61.1000. The final SY 2026-2027 (TY 2026) MCR values for each district are available on the State Funding webpage under the District & Charter Planning Tools subheading. The final MCR list includes the results of any appeals and supersedes the previous list of preliminary MCRs posted on August 5, 2026.

The SY 2026-2027 Summary of Finances (SOF) reports will be updated to incorporate final TY 2026 MCRs before the first FSP payments in September 2026. Total M&O tax rates will be updated by February 2027 when the 7mƵ receives preliminary state-certified property values and self-reported tax rates from the Comptroller’s Property Tax Assistance Division.

Questions

If you have any questions about the SY 2026-2027 LPVS and calculation of maximum compressed tax rates for TY 2026, please email taxprograms@tea.texas.gov.