The Texas 10% homestead cap limits how much your home's assessed value can increase each year for property tax purposes. This protection applies only to your primary residence with a homestead exemption, capping annual increases at 10% or the lesser of 10% or the increase in market value.
This cap protects homeowners from dramatic tax increases in rapidly appreciating markets, but it's often misunderstood. Here's exactly how it works and what it means for your property taxes. What Is the 10% Homestead Cap?
The 10% homestead cap, established by Texas Tax Code Section 23.23, limits the annual increase in your home's assessed value to 10% of the previous year's assessed value. This applies only to properties with a valid homestead exemption filed with the county appraisal district.