In Texas, there is a 10% annual cap on how much taxable values for homeowners with a homestead exemption can increase from the year prior, according to Texas Property Tax Code.
Alvin Lankford, chief appraiser of the Williamson Central Appraisal District, explained how if market values spiked 30% or more in 2022, then taxable values could still be playing “catch-up” in 2025.
“Your assessed value, which is the amount you can be taxed on, can only go up 10% per year, but your market value is still going to be wherever the market is,” Lankford said during a Williamson County Commissioners Court meeting in early June. “Assessed values will continually rise by 10% until they reach market value.”
Explained
Homeowners, he highlighted, can only protest their market values, which appraisal districts determine after analyzing sales of comparable properties, while also considering several factors.
- Location
- Size
- Condition
- Recent upgrades, such as the addition of a pool
Although homeowners might become frustrated when their taxable values rise despite a loss in market value, Lankford stressed how appraisal district staff, like his, are often a calming force when residents arrive at the office eager to protest their values.
“They’re not always the happiest,” Lankford said of Williamson County homeowners. “Our staff is doing an excellent job of explaining the appraisal process to them, and they’re walking out with a better understanding.”
Also of note
Chief appraisers were required to certify their latest appraisal rolls and deliver them to each taxing unit by July 25. These certified appraisal rolls will be the foundational tool from which taxing units will develop their budgets and tax rates over the next several weeks.
A homeowner’s overall property tax bill depends on the tax rate set by each taxing unit.
- School districts
- Counties
- Cities
- Special districts such as emergency service districts, municipal utility districts, and water control and improvement districts
