Residence Homestead Cap

Texas Comptroller of Public Accounts · State program

Appraised-value cap of 10% annual growth, with disaster-related replacement structure exceptions

Texas caps annual appraised-value growth on residence homesteads and treats certain disaster replacement structures as not-new improvements. This is tax valuation relief, not a repair grant.

Last verified: September 3, 2026

Program details

How it works

Tax Code Section 23.23 limits the appraised value of residence homesteads to 10% of the appraised value for the preceding tax year plus the market value of all new improvements.

What the money covers

This is a tax appraisal limitation. It does not pay for repairs or rebuilding.

If an improvement is a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage, the replacement structure is not considered a new improvement. However, if the replacement structure exceeds the square footage of the original structure or the exterior is of higher construction quality and composition, that portion is treated as a new improvement and taxed accordingly.

A replacement structure is also not considered a new improvement to the extent needed to satisfy square footage or exterior quality requirements of a disaster recovery program administered by the General Land Office or by a political subdivision of Texas that is federally funded.

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