Archive for January, 2012

How the Texas Homestead Tax Cap Works


How the Texas Homestead Tax Cap Works: in simple terms.

For homes that are receiving a homestead exemption, which is any property that the owner considers their primary residence, the appraised value may be lower than the property’s market value because of what the law refers to as the “homestead cap.”

Currently the law states that, while a property’s January 1st market value isn’t capped, the property’s appraised value is capped at a maximum increase of 10% from the previous year.

So, let’s say:

  • The market value of someone’s home on Jan 1st is $200,000
  • But, the year prior it was only valued at $170,000.
  • This year’s appraised value would be $187,000, which is an increase of 10% from the previous year.

But in some situations, the value of the home can go down while the appraisal goes up.
Lets pretend that next year, something happens and:

  • The home’s value drops from $200,000 to $190,000.
  • The cap for that year would be $205,700.
  • The appraised value would increase from $187,000 to $190,000.

and taxes would increase even though property value decreased.

To qualify for the cap, the owner must first receive the homestead exemption, then the value must increase more than 10% within a year.

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A tax lien is now on your property

Published by Research Editor on January 1st, 2012 - in Taxes, The Basics

Happy New Year!

Today is the date a tax lien attaches to your property until your taxes are paid. This lien means that, if you don’t pay your taxes, the courts can foreclose and seize your property.

A tax lien is serious business. To get rid of the lien, pay your taxes.

Are you having difficulty paying your property taxes this year? Consider a property tax loan to pay off the lien and avoid fees and extra charges from the taxing authorities.

© 2013 FYP, LLC.