Texas HB3235 limits increases in the appraised value of a residence homestead for ad valorem tax purposes.

HB3235 amends the Tax Code to limit the increase in the appraised value of a residence homestead for ad valorem tax purposes. The appraised value for a tax year cannot exceed the lesser of the market value from the most recent tax year or the sum of 10 percent of the appraised value from the preceding tax year, the appraised value from the preceding tax year, and the market value of any new improvements. This limitation applies to tax years beginning on or after January 1, 2026.

Texas HB3235 limits increases in the appraised value of a residence homestead for ad valorem tax purposes.

HB3235 amends the Tax Code to limit the increase in the appraised value of a residence homestead for ad valorem tax purposes. The appraised value for a tax year cannot exceed the lesser of the market value from the most recent tax year or the sum of 10 percent of the appraised value from the preceding tax year, the appraised value from the preceding tax year, and the market value of any new improvements. This limitation applies to tax years beginning on or after January 1, 2026.