So if 2016’s market value increased from $200,000 to $230,000 in 2017, the appraised value would be limited to a 10% increase. The first year that you would be eligible to receive the homestead exemption would be January 1, 2016, and the cap would not be in place until January 1, 2017. Let’s say you purchased and moved into your home in 2015. Let’s look at an example of how this really works.
COLLIN COUNTY CAD FULL
The appraised value can go up a maximum of 10% each year until it reaches the full market value although there are exceptions to this rule. The market value may increase by any percentage over the previous year, but the “cap” makes sure that you are not taxed on an increase of more than 10%.
In the second year, when you qualify for a homestead cap, your market value and appraised value may not be the same. This means that the property will be appraised at full market value for the first year that you qualify and receive a homestead exemption. You qualify to have your appraised value capped if the property is your primary residence and you have had exemptions in place for two years. Today, I will identify who qualifies for the homestead cap and answer some frequently asked questions like “What does it mean?”, “Why is it applied?”, and “When and how is it calculated?”Īppraisal districts are required to appraise properties at their fair market value as of January 1 of each year. Hello, I’m Markeda Maxie with the Harris County Appraisal District. The cap is especially important in markets with rapidly rising home values. This is commonly referred to as the homestead cap. In 1997, Texas voters implemented a “limit” on increases in appraised values for homestead properties. So how can homeowners protect themselves from these increases? When the Harris County economy thrives, property values can increase by 20%, 25% and even 30% in a year.
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