Circuit Breaker Limitation‐Property Tax Code Section 23.231
Beginning in 2024, real property valued at $5,000,000 or less will benefit from a 20% limitation
on the net appraised value of the property used to calculate your taxes, with the exclusion of
land receiving the agriculture‐use special appraisal and homestead properties that could qualify
for the 10% homestead limitation.
The circuit breaker provision limits the amount the appraisal district can increase your property
value. The appraised value of qualifying real property is limited to an increase of no more than
20% per year unless new improvements, excluding ordinary maintenance, have been made. This
limitation takes effect on January 1 of the tax year following the first tax year in which the owner
owns the property. If you owned your property as of January 1, 2023, you will receive this
appraised value limitation in 2024. You must own the property for at least one full calendar year
(January through December) before you are eligible for a 20% limitation. Your property will now
reflect two values:
the circuit breaker cap value which is the value that your taxes will be based on, and
the market value which is the true value of the property.
For example, the appraised value of your qualifying real property was $100,000 last year. This
year the Appraisal District appraises your property at $125,000. No new improvements or
additions have been made to the property since last year. The circuit breaker value is calculated
as follows:
Step 1: $100,000 x 20% = $20,000
Step 2: $100,000 + $20,000 = $120,000
Your taxes will be based on the circuit breaker value of $120,000; however, the market value of
your property will remain at $125,000.
The circuit breaker limitation expires on January 1 of the first tax year that the owner no longer
owns the property. Should you sell your property, the limitation will be removed and the tax base
will increase to the property’s current market value until the new owner is eligible for the same
benefit.
The Texas Legislature has currently only authorized the circuit breaker limitation for the 2024,
2025, and 2026 tax years. The appraised value that the circuit breaker applies to is set at
$5,000,000 or less for 2024; however, the State Comptroller can increase or decrease the
appraised value limit for 2025 and 2026 based on the consumer price index.
You are not required to submit an application to receive a circuit breaker limitation. The
appraisal district will automatically apply and calculate these benefits every year.
