Midway ISD taxpayers will see a lower school district tax rate for 2026 following action by the Board of Trustees Tuesday night.
At its Aug. 18 meeting, the Board adopted a total tax rate of $0.9089 per $100 of taxable property value, a decrease of 2.8 cents from the previous year’s rate of $0.9369.
The adopted rate includes $0.6689 for maintenance and operations, or M&O, which funds the district’s day-to-day operations, and $0.24 for interest and sinking, or I&S, which pays the district’s voter-approved bond debt.
“This continues a long-term trend of maintaining or reducing Midway ISD’s tax rate while meeting our financial obligations and maintaining the quality our community expects,” Assistant Superintendent of Finance Wesley Brooks said.
The 2.8-cent reduction equals approximately $28 in annual savings for every $100,000 of taxable value, assuming the property’s taxable value remains unchanged.
For a residence homestead valued at $400,000, after applying the state’s $140,000 school homestead exemption, the lower rate represents approximately $72.80 in annual savings compared with the previous year’s rate.
Individual tax bills may still increase or decrease based on changes in property values, exemptions and other factors.
Commercial Growth Broadens Midway's Tax Base
Midway ISD’s ability to maintain a comparatively low tax rate is supported in part by continued growth in the district’s commercial and industrial tax base.
Property values increased approximately 7.3% over the previous year, with commercial and industrial property now accounting for more than 60% of Midway ISD’s taxable value. Residential property represents less than 40%.
Recent commercial growth includes Graphic Packaging International’s recycled paperboard facility within the district.
“More than 60% of Midway ISD’s tax base comes from commercial and industrial property,” Brooks said. “That means businesses and industry shoulder a larger share of the local tax base, reducing the responsibility placed on residential taxpayers and helping keep the district’s overall tax rate lower.”
The 2026 rate continues a decade-long trend in which Midway ISD’s total tax rate has remained stable or declined.
“Midway’s strong commercial growth has helped broaden our tax base and reduce the share of school taxes paid by homeowners,” Superintendent Dr. Chris Allen said. “That’s sustainable tax relief. But long-term, the answer is a state funding system that adequately invests in public education while allowing districts to maintain a stable, predictable local tax rate.”
Under Texas’ school finance system, the state compresses the M&O portion of school district tax rates as property values increase. While compression lowers the rate districts can levy locally, the state is intended to make up the difference through the school finance system.
District leaders have continued to emphasize that, as inflation and operating costs increase, state funding must keep pace with the actual cost of educating students.
The newly adopted tax rate will apply to the 2026 tax year.
