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Using the Measures of Effective Teaching (MET) database, this paper analyzed the multilevel variation of teacher quality in mathematical education among six urban school districts. It distinguished itself from previous literature by using item-response-theory-based latent scores of teacher’s content knowledge for teaching (CKT) in Mathematics to measure teacher quality. The analytic results generated new evidence on inequitable distribution of teacher quality existing within schools. Results showed that a large proportion (over 75%) of the CKT variation lied within schools, and the variation was larger in middle schools and high schools where performance-based grouping were more prevalent. Lower performing classrooms or classrooms having larger proportions of disadvantaged students were taught by teachers of significantly lower CKT.