CIRCUIT BREAKER LIMITATION

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 PLUS20 percent of that value PLUS the market value of all new improvements on the property 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.

If you sell your property, remove your homestead exemption and continue to own the property, or purchase a new property, any existing limitations on the property’s value will be removed and the tax base will increase to the current market value. The property will benefit from a limitation after one full calendar year.

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.