What this is
New Texas law limits yearly home tax increases to 10% plus improvements, protecting homeowners from rising property values.
Texas House Bill 299 brings new rules for how home values are appraised for property taxes. The law caps yearly increases in a home's appraised value, giving homeowners more control over their tax bills. This policy takes effect in the 2026 tax year and applies to homeowners who have claimed a homestead exemption.
The main protection is a 10% yearly cap on increases to a home's appraised value for tax purposes. On top of this base amount, homeowners can add the value of any new improvements they make to their property, like adding a room or updating a roof. This means a homeowner's tax appraisal can only jump by the smaller of two amounts: the current market value or the 10% cap plus improvements.
For homeowners who bought their homes recently, there is an added benefit. If you bought your home as a true buyer for fair price, the amount you paid becomes the starting value for tax purposes. This helps protect new homeowners from facing sudden big tax jumps after they buy.
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To use this protection, homeowners must apply with their local appraisal office before the deadline for homestead exemption applications. The purchase price information homeowners provide is kept private and only shared when needed for legal or official reasons.
This law helps families in our community keep property taxes more stable and predictable, even as neighborhood property values change. Homeowners who want to benefit from these new rules should contact their county appraisal district for application details.
Key details
- Annual Cap Increase: 10%
- Effective Tax Year: 2026
- Includes New Improvements: Yes
- Sponsor: Shelley Luther
About Texas Legislature
The Texas Legislature is the state legislature of Texas, consisting of the House of Representatives with 150 members and the Senate with 31 members. Meeting in regular session every two years, the legislature passes stat…
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How this affects households
Under $30,000
If you own a home, this caps your property tax increases at 10% per year, which helps keep housing costs steady. However, many families at this income level rent rather than own homes, so they won't see direct benefits.
$30,000-$60,000
Homeowners get protection from big property tax jumps, keeping the yearly increase at 10% or less. This helps families budget better and avoid being priced out of their neighborhoods as home values rise.
$60,000-$100,000
The 10% cap on property tax increases provides steady savings, especially in areas where home values are rising fast. New buyers also get protection by using their purchase price as the starting point for taxes.
Over $100,000
Higher-income homeowners benefit from the 10% cap, but they typically have more ability to handle property tax increases anyway. The protection is helpful but less life-changing than for middle-income families.
How to get involved
- 1Start with the snapshot above to know what this is in a glance.
- 2Read why it matters so you can speak to it in your own words.
- 3Weigh in using the button above.
When you call, you can say: “Hi, I saw "HB 299: Limits How Much Home Values Can Rise for Taxes" on Community Exchange and want to know how to take part.”
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