New Homeowners Lose the Previous Owner's Tax Cap

Texas law caps how much a homestead's assessed value can grow each year — at 10% — once the homestead exemption is in place. But that cap belongs to the owner, not the house. When a property sells, the cap resets.

That means your first year's taxes are based on the new purchase price with no cap protection. The cap only starts working after you have owned and lived in the home for a full calendar year starting January 1. Budget carefully in the first year after buying. Check the current assessed value and tax rate at wcad.org before you close.