In Texas, appraised vs assessed value (often called taxable value) is not the same. The appraised value is what the district says your property is worth, while the taxable value is what your taxes are actually based on after exemptions and limits are applied.
What Appraised Value Means
Your appraised value is the market value assigned to your property by the appraisal district.
This number reflects:
- What your home could sell for
- Market conditions in your area
- Property features and condition
You’ll find this value on your appraisal notice, and it is often the starting point for a protest.
What Taxable Value Means
Your taxable value is the number used to calculate your property taxes.
In many cases, this value is lower than your appraised value because:
- Exemptions reduce the taxable amount
- Limits like the homestead cap may apply
As a result, your taxable value determines what you actually pay.
How Exemptions Affect Taxable Value
Exemptions can significantly reduce your taxable value.
Common examples include:
- Homestead exemption
- Over-65 exemption
- Disability exemption
If these are applied correctly, they lower the portion of your property value that is taxed.
How the Homestead Cap Fits In
If you have a homestead exemption, your taxable value increase is limited by the homestead cap 10 percent rule.
This means:
- Your taxable value cannot increase by more than 10% per year
- Even if your market value rises faster
Because of this, your taxable value may grow more slowly than your appraised value
Why This Confuses Homeowners
Many homeowners assume their taxes are based on the appraised value alone.
However:
- Taxes are based on the taxable value calculation
- Exemptions and caps can lower that number
So even if your appraised value increases, your taxable value may not rise at the same rate.
Understanding appraised vs assessed value in Texas helps you read your appraisal notice correctly and make better decisions about whether to protest.
