Grapevine’s City Council adopted a $0.226817 property-tax rate per $100 of valuation on Tuesday, Sept. 15, lowering the city rate for a seventh consecutive fiscal year. The rate is 4.4% below the current $0.237228 rate, according to Community Impact.
The adopted rate is Grapevine’s no-new-revenue rate, a calculation intended to produce about the same total property-tax revenue from existing property as the previous year after changes in taxable value. The Texas Comptroller of Public Accounts describes the calculation under the state’s truth-in-taxation system.
A lower rate does not tell the whole revenue story
Grapevine’s official FY2026 adopted budget shows why the rate can fall even as the city’s tax base grows. Net taxable value increased by $1.6 billion, or 13%, in 2025, while the budget projected property-tax revenue growth of no more than 3.5% annually because of state-mandated limits, according to the City of Grapevine’s FY2026 Adopted Budget.
That relationship is important for interpreting the new rate: a percentage reduction in the rate is not the same as a percentage reduction in the city’s total property-tax revenue. Nor do the available records establish a complete year-by-year comparison of Grapevine’s actual property-tax collections from FY2020-21 through FY2026-27. The Comptroller cautions that published levies do not reflect actual collections and may differ from local figures because of appraisal-roll changes and other adjustments, as explained on its property-tax rate page.
The new rate consists of $0.128299 for maintenance and operations and $0.098518 for interest and sinking, the debt-service portion. Grapevine’s budget forecast says debt restructuring and the payoff of existing debt should reduce the property-tax amount needed for interest and sinking obligations, providing another piece of context for the declining rate.
What homeowners are expected to save
For the city’s stated average taxable home value of $393,431, the adopted rate produces an estimated city tax bill of $892.37. Community Impact reported that this is about $52.50 less than the $944.87 bill that would have resulted from applying the prior rate to the prior comparison value. That is an estimate for the city portion of the bill, not a universal savings figure for every homeowner.
Individual bills can differ because taxable value, exemptions and caps vary by property. The Tarrant Appraisal District says a homestead exemption can remove all or part of a residence homestead’s value, while the 10% homestead cap can limit annual appraised-value increases subject to exceptions. School-district, county and other taxing-unit rates also remain separate from Grapevine’s municipal rate.
The broader budget relies on more than property taxes
Grapevine’s FY2026 budget records show that sales-tax collections grew 7% year over year in FY2023 and FY2024, while projected growth moderated to about 2% to 4% in FY2025 and FY2026. The same budget projected $22.4 million in FY2026 hotel-occupancy-tax collections, up 5% from the FY2025 budget of $21.4 million, according to the city’s adopted budget.
Those figures help describe the revenue setting in which the council approved another no-new-revenue rate, but they do not prove that any single revenue source directly financed the rate reduction. They also show a mixed outlook: tourism-related collections were projected to increase, while sales-tax growth was expected to be slower than in the prior two fiscal years.
The city’s overall FY2026-27 operating budget totals $262.4 million, a 6.84% increase from the current fiscal year, according to Community Impact. The adopted plan includes funding for city operations, debt obligations, fleet replacement, streets and parks, public safety and utility operations even as the municipal property-tax rate declines.
The immediate takeaway is therefore narrower than the headline savings figure: Grapevine has adopted its seventh consecutive rate cut, while taxable-value growth and non-property-tax revenues help shape the city’s ability to maintain its no-new-revenue policy. The final effect on any homeowner depends on that property’s taxable value, exemptions, caps and the rates imposed by the other taxing entities on the bill.
