Starting in the 2026-27 school year, the Teacher Incentive Allotment (TIA) pays Texas school systems $3,000 to $36,000 a year for each designated teacher they employ, and at least 90% of that money must go to teacher pay on the designated teacher's campus. Any Texas district or open-enrollment charter can receive the funds for designated teachers it hires, but designating your own teachers takes a local system that needs at least three years from application to first payment.
This chapter is for superintendents, HR directors and finance teams deciding whether to build a system, or running one under the changes House Bill 2 (2025) made.
What the Teacher Incentive Allotment pays in 2026-27
The Legislature created TIA in House Bill 3 (2019) "to ensure classroom teachers in this state have access to a six-figure salary," according to Texas Education Code §48.112 (opens in a new tab). It is a Foundation School Program allotment, not a grant, and it has no cap on funds or on the number of designated teachers.
HB 2 raised the amounts starting in 2026-27. Each allotment is a base amount plus a multiplier times the average "student point value" of the designated teacher's campus, which reflects student economic need by census block group. Rural campuses count two tiers higher.
| Designation | Base | Multiplier | 2026-27 range per teacher |
|---|---|---|---|
| Master | $12,000 | $6,000 | $12,000 to $36,000 |
| Exemplary | $9,000 | $4,000 | $9,000 to $25,000 |
| Recognized | $5,000 | $2,500 | $5,000 to $15,000 |
| Acknowledged or nationally board certified | $3,000 | $1,500 | $3,000 to $9,000 |
Source: Texas Education Code §48.112(c) and (d), as amended by HB 2 (2025).
The money follows where the teacher works. TEA pays the allotment to the district that employs the designated teacher as of the last Friday in February, based on that teacher's campus. Values are recalculated each April. A teacher who works on several campuses earns the average of those campus amounts, and a teacher assigned centrally earns the district average.
Districts that also meet the criteria for an enhanced TIA system, including performance pay for principals and a salary schedule differentiated by appraisal, receive their allotments multiplied by 1.1.
How designations work, and who can earn one
Under Texas Education Code §21.3521, a district or open-enrollment charter may designate a classroom teacher as Master, Exemplary, Recognized or Acknowledged for five years, based on teacher observation and student growth. Teachers with National Board certification can be designated through that route instead.
The commissioner's rules, adopted in April 2026 in 19 Texas Administrative Code §150.1043, set the standards for each level. TEA's September 2025 letter to administrators (opens in a new tab) ties them to statewide shares: "Acknowledged represents the top 50% of Texas teachers, Recognized the top 33%, Exemplary the top 20%, and Master the top 5%."
| Level | Observation (T-TESS Domains II and III average) | Students meeting expected growth | Statewide anchor |
|---|---|---|---|
| Acknowledged | 3.5 | 50% | Top 50% |
| Recognized | 3.7 | 55% | Top 33% |
| Exemplary | 3.9 | 60% | Top 20% |
| Master | 4.5 | 70% | Top 5% |
Source: 19 TAC §150.1043, effective April 19, 2026. Standards are "generally" applied; a district's own rates can differ from the statewide shares.
Three rules shape your hiring as much as your system:
- Designations travel. A designation stays active until it expires "regardless of the teacher's district, role, or employment status," according to TEA's TIA site. Any district that hires a designated teacher receives the allotment, with no local system required.
- They are not subject-specific. The designation sits on the teacher's certificate without a subject, grade or certification area.
- The National Board route changed on August 1, 2026. National Board certified teachers previously designated Recognized are now designated "nationally board certified," at the Acknowledged funding level, until the July after their certificate expires.
Hiring a designated teacher brings the allotment with them, even if your district has never built a system.