Circuit Breaker Limitation2024-06-10T14:49:22-05:00

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.

FREQUENTLY ASKED QUESTIONS

Why doesn’t my property have the 20 percent circuit breaker limitation applied to my net appraised value?2024-06-07T16:46:05-05:00

Your property may not have a limitation applied if it is valued above $5 million, you have not owned the property for at least one full calendar year, you are currently benefiting from a homestead exemption limitation, or you removed exemptions you previously had on the property. Your property’s market value must increase to current market value before a limitation can be applied.

How is the circuit breaker limitation calculated?2024-06-07T16:50:53-05:00

Real property valued at $5 million or less will benefit from a 20 percent limitation on the net appraised value used to calculate property taxes. Each property that qualifies will  have a net appraised value that will be the lesser amount of:

  • last year’s net appraised value PLUS 20 percent of that value PLUS the market value of all new improvements on the property OR
  • this year’s market value
Do I need to apply for the circuit breaker limitation?2024-06-09T10:51:41-05:00

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.

I protested my property’s market value and it now qualifies for a circuit breaker limitation. When will my net appraised value be recalculated?2024-06-10T14:50:47-05:00

Net appraised value calculations are not performed during the hearing process. If your property’s net appraised value needs to be adjusted as a result of your protest, the appraisal district will update that value within 2 weeks of your hearing. You can keep track of these updates using our website’s property search feature.

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Check out our Frequently Asked Question library or contact us for more information.

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