Beginning in 2024, real property valued at $5 million or less will benefit from a 20 percent limitation on the net appraised value of the property used to
calculate property taxes. Each property that qualifies will receive a Notice of Appraised Value, typically in April, that specifies the market value of the
property as of January 1. These properties will also have a net appraised value that will be the lesser amount of:
- last year's net appraised value plus 20% plus the value of any new
construction OR
- this year's market value.
You must own the property for at least one full calendar year (January through December) before you are eligible for a 20 percent limitation. Properties
already receiving a homestead exemption are not eligible and will continue to receive the standard 10 percent limitation on their net appraised value. Should
you sell your property, the limitation will be removed and the tax base will increase to the property's current market value until the new owner is eligible for
the same benefit.
The Texas Legislature has currently only authorized the circuit breaker limitation for the 2024, 2025, and 2026 tax years.
You are not required to submit an application to receive a circuit breaker limitation. The appraisal district will automatically apply and calculate
these benefits every year.