Proposition 4 has recently been approved in Texas, bringing positive changes to your homestead exemption. To better understand the modifications to your homestead taxes, consider the following details.
The change takes aim at your ISD annual taxes, providing a valuable benefit. This exemption has now increased to $100,000 of your home’s value being exempt when calculating ISD taxes. On average, homeowners can anticipate annual savings of +/- $2,500 in their home-related taxes.
For the first time, some businesses will see a limit on how much their appraised property values, a key factor in the equation of how property tax bills get calculated, can grow each year. Homeowners already benefit from a 10% cap on how much their taxable home value can grow each year. But businesses currently don’t have such a cap. The new cap will apply to commercial, mineral and residential properties that don’t receive a homestead exemption — like rental homes and apartment buildings — that are appraised at less than $5 million. Appraisal districts can not raise the taxable value of those properties by more than 20% each year for the next three years. The cap will expire in 2026 unless lawmakers and voters decide to extend it.
Appraisal districts are working to modify accounts now and issue 2023 tax statements. For more information refer to your local county tax assessor-collector page for reference. Fort Bend has a property tax estimator – CLICK HERE to try it out.
