District 196 Property Tax Levy Increases 12.8% for 2026

South Metro Scoop Team
December 14, 2025

Here's What South Metro Homeowners Will Pay

What's the impact for your wallet? The median-valued home in Apple Valley, Lakeville, Burnsville, and other District 196 communities will see about $85 more annually in school taxes.

If you own a home in Rosemount, Lakeville, Apple Valley, Burnsville, Eagan, or another District 196 community, you're probably wondering what December's school board meeting means for your 2026 property tax bill.

Here's the breakdown.

The Numbers That Matter to You

At their December 9th meeting, the District 196 school board certified a $168.8 million property tax levy for 2026 – a 12.8% increase from last year (that's $19.2 million more).

For a home valued at $447,600 (the median value in the district), you're looking at approximately $85 more per year, or about $7 per month.

Of course, if your home is worth more or less than that median, your increase will be proportionally higher or lower.

Where's This Money Coming From?

Here's something important to understand: 67% of this levy is from voter-approved referendums. That means two out of every three dollars you're paying came from ballot measures that South Metro residents voted "yes" on.

Those approved levies include:

  • Operating levy (2019) – helps maintain class sizes and provides mental health support
  • Technology levy (2015, renewed and increased in November 2024) – funds classroom tech and digital learning tools
  • Building bonds (2023) – pays for facility improvements and new construction like the Emerald Trail Elementary

The remaining 33% comes from state-mandated property taxes that all Minnesota school districts collect.

What's Driving the 10% General Fund Increase?

The general fund – which covers most day-to-day school operations – is going up 10% ($12 million). About 30% of that increase comes from inflationary adjustments built into the operating levy. The rest? That's mostly from the tech levy increase voters approved in November 2024.

Remember when you saw that tech levy renewal on your ballot? This is that money going to work.

The Bigger Budget Picture

District 196 serves nearly 29,000 students across Prior Lake, Savage, Shakopee, Farmington, and other South Metro communities.

The district's total budget includes:

  • $526 million in general fund spending (classroom instruction, support services, staff salaries)
  • Over 4,000 budgeted employees district-wide
  • 66% of teachers have been with District 196 for 5+ years
  • 85% of teachers hold advanced degrees

What This Means for Your Property Value

Here's the thing about school district levies: they directly fund the quality of education in your community, which influences property values. Strong schools typically correlate with stable or increasing home values.

Whether you have kids in the school system or not, the District 196 levy affects every homeowner in Dakota County's southern suburbs.

When Will You See This on Your Tax Bill?

You'll receive your actual tax statement in March 2026, with payment due in two installments throughout the year.

If you want to potentially reduce your property tax burden, you can:

  • Request a property tax refund when filing your 2025 taxes in April
  • Appeal your property valuation with Dakota County if you believe it's too high

The Bottom Line

For most District 196 homeowners, you're looking at about $7 more per month to fund schools serving nearly 29,000 South Metro students. Two-thirds of that increase comes from referendums local voters approved.

Love it or hate it, this is how local education gets funded in Minnesota – and it's a cost every homeowner in our district shares.

Have questions about your specific property tax bill? The Dakota County Property Information site has tools to look up your home's assessed value and estimated taxes.

Want to stay informed about South Metro city council meetings, school board decisions, and local developments? Subscribe to the South Metro Scoop newsletter – we break down the complex stuff so you don't have to.

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