Your tax bill is the product of three numbers: appraised value, exemptions, and rate. Understanding all three is how you find where you’re being overcharged — and where to fight back.
Texas property tax is straightforward in structure — even if the system is designed to obscure it. Three variables determine what you owe. Change any one of them and your bill changes.
Set by your county appraisal district as of January 1 each year. This is what they claim your property would sell for on the open market. It can be wrong — and you can protest it.
Statutory reductions subtracted from appraised value before the rate is applied. Homestead, over-65, disabled veteran, and others. You must apply — they are not automatic.
Set each fall by every taxing unit (school district, county, city, MUD, etc.) that has jurisdiction over your property. Rates are expressed per $100 of assessed value.
Even when appraised values surge, Texas law limits how much your taxable value can increase year-over-year. Two caps exist. One is permanent. One expires at the end of 2026. Both matter — especially if you own property beyond your primary residence.
If your property has a homestead exemption on file, your assessed value — the value actually used to calculate taxes — cannot increase by more than 10% per year, no matter how much the appraised value jumped. This cap accumulates: if your appraised value rises 40%, your assessed value can only rise 10% per year until it catches up.
Tex. Tax Code § 23.23For non-homestead properties valued at $5 million or less — rental property, commercial buildings, second homes, vacant land — the assessed value increase is capped at 20% per year. This was passed as temporary relief. Unless the Legislature acts to extend it, it expires at the end of 2026.
Tex. Tax Code § 23.231 ⚠ Expires December 31, 2026Check your notice. If your assessed value increased by more than these caps allow, that is a statutory error — not just an opinion. It is grounds for protest regardless of what the market did.
Run your own numbers. This calculator applies the homestead and circuit breaker caps where applicable and estimates your bill based on a combined tax rate.
Enter your property details. Combined rate is the sum of all taxing units (school district + county + city + other). Find yours on last year’s tax bill or your county’s website.
Exemptions reduce your appraised value before the tax rate is applied. Most require a one-time application — they do not renew automatically (with a few exceptions). Missing an exemption you qualify for is money left on the table every year.
| Exemption | Who Qualifies | Reduction | Deadline |
|---|---|---|---|
| General Homestead§ 11.13(a) | Owner-occupants of their primary residence as of January 1 | $100,000 off school district taxable value (2023 law) | April 30 |
| Over-65 Homestead§ 11.13(c) | Homestead owners age 65 or older | Additional $10,000 off school district value; school tax frozen | April 30 (or within 1 year of turning 65) |
| Disability Homestead§ 11.13(c) | Homestead owners who are legally disabled (as defined by SSA) | Additional $10,000 off school district value; school tax frozen | April 30 |
| 100% Disabled Veteran§ 11.131 | Veterans rated 100% disabled by the VA | Full exemption on one property — $0 taxable value | April 30 |
| Partial Disabled Veteran§ 11.22 | Veterans with VA disability rating 10%–90% | $5,000–$12,000 depending on rating | April 30 |
| Agricultural / Open Space§ 1-d, 1-d-1 | Land in agricultural use (farming, ranching, timber, wildlife) | Productivity value instead of market value — often dramatically lower | April 30 (initial application) |
| Solar / Wind Energy§ 11.27 | Property with qualifying solar or wind energy devices | Value of the device excluded from appraisal | April 30 |
Exemption amounts and eligibility rules change with legislation. Verify current amounts with your county appraisal district or the Texas Comptroller’s exemptions page.
Your tax rate is not set by your appraisal district. It is set each fall by every taxing unit that has authority over your property — and there are usually several of them. Each adopts its own budget. Each sets its own rate. Your total rate is the sum of all of them.
Texas law requires taxing units to publish proposed rates and hold public hearings before adopting any rate that exceeds the no-new-revenue rate — the rate that would collect the same total dollars as last year on the same properties. Any rate above that threshold is a real tax increase, regardless of what politicians claim. Show up to those hearings.
“No person’s particular services shall be demanded, nor property taken or applied to public use, unless by the consent of himself or his representative, without just compensation being made therefor.”
— Section 13, Declaration of Rights, Republic of Texas, 1836The founders wrote that while an army was in the field trying to stop them. The principle did not expire with the Republic. It carried forward into the Texas Constitution, into the Tax Code, and into every exemption, cap, and public hearing requirement that exists today. When a taxing unit raises its rate without a hearing, or an appraisal district ignores a cap, they are violating more than statute — they are operating against the plain intention of this state’s founders.
If your Notice of Appraised Value has arrived, use what you’ve learned here to check your math — then act:
For informational and educational purposes only. Property-Taxes-Texas.com is a citizen advocacy and education resource. Nothing on this site constitutes legal, financial, tax, or appraisal advice. We are not attorneys, CPAs, or licensed appraisers. Consult a licensed Texas attorney, qualified financial advisor, or certified appraiser for guidance specific to your situation. Deadlines, rates, and statutes are subject to change — verify all details with your county appraisal district or the Texas Comptroller before acting.
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