Capped Appraisal Values - FAQs answered
A homestead's appraised value should be the lowest of market value or 10% over previous year's appraised value + any subsequent improvements. This is the capped appraisal value.
Tag: Appraisal Cap
Capped Appraisal Values and its impact on property taxes in Texas.
Texas Property Tax Code Section 23.23, states that a residential homestead is limited to a 10% increase. That means, even if your property's market value rises sharply in a year, your appraised value for the purpose of property tax will not rise as much. Thus, your property tax will see a more gradual rise.