My appraised value went up more than 25%. Does that mean my city tax bill will also increase 25%.

Per the Texas Comptrollerthe appraised home value for a homeowner who qualifies his or her homestead for exemptions in the preceding and current year may not increase more than 10 percent per year.

Tax Code Section 23.23(a) sets a limit on the amount of annual increase to the appraised value of a residence homestead to not exceed the lesser of:

  • the market value of the property; or

  • the sum of:

    • 10 percent of the appraised value of the property for last year;

    • the appraised value of the property for last year; and

    • the market value of all new improvements to the property.

Tax Code Section 23.23(e) defines a new improvement as an improvement to a residence homestead made after the most recent appraisal of the property that increases its market value and was not included in the appraised value of the property for the preceding tax year. It does not include repairs to or ordinary maintenance of an existing structure, the grounds or another feature of the property. Tax Code Section 23.23(f) states that a replacement structure for one that was rendered uninhabitable or unusable by a casualty or by wind or water damage is also not considered a new improvement.

The appraisal limitation only applies to a residence homestead. As stated in Tax Code Section 23.23(c), the limitation takes effect Jan. 1 of the tax year following the year in which the homeowner qualifies for the homestead exemption. It expires on Jan. 1 of the tax year following the year in which the property owners no longer qualify for the residence homestead exemption.

If an ARB, arbitration or court determination lowered a property’s appraised value, the appraisal district cannot increase the appraised value unless the increase is reasonably supported by clear and convincing evidence.

Show All Answers

1. How do I protest my property tax value?
2. Where can I find forms for exemptions or protests?
3. There’s an error on my property value notice. What do I do?
4. My appraised value went up more than 25%. Does that mean my city tax bill will also increase 25%.
5. How do I apply for an exemption?
6. How do I obtain an over 65 exemption and what does it do?
7. What is the deadline for filing for a homestead exemption?
8. Are there any helpful appraisal resource links?