Texas RE Taxes after change of owners

4 Replies

Hi guys,

Just doing my research.. still looking via Google but I want throw my question out here..

If I buy a property in texas is the re tax recalculated after change of ownership based on

1) up to 30% increase from prior years - if it's $1k in prior years it'll be maxed out at $1.3k (heard about this for the first time)

2) or based on current value whatever the percent is for the county... 2.7% or 2.8% of new property value. (this is what I've seen based on my county tax records searches of properties sold last year.) so this could be 50% increase if the property was held by the prior owner for a long time.


If you buy a home in Texas that will not be your personal residence you will lose the homestead exemption and your tax assessment will be based on the market value of the home.

We pay our taxes in arrears and they are due in January. If you closed on a home today the seller would credit you for the prorated taxes from Jan 1 through today, and you would be responsible for the rest of the year. Closing on a home now would not affect the taxes for 2017. 

On Jan 1, 2018, you will lose the homestead exemption and you will be subject to the full assessed taxable value of the home.

if I'm understanding it right the full assessed taxable value in TX is different from the selling price? 

And the full assessed taxable value never increases more than 30% per year in TX?

@Harris L.

The market value is what the Appraisal District determines is the fair market value of a home. It is rarely anywhere close to the actual fair market value. It is usually lower.

The assessed value is the amount of the market value on which you will pay taxes. The difference between the two is in the exemptions. If it's not your personal home, you get no exemptions and the assessed value and the market value will be the same.

The is no cap that I know of in the increase of market value.