Appraised Value vs. Taxable Value

These two numbers are easy to conflate, and the distinction matters when you are deciding whether an assessment deserves a protest.

Appraised value

The appraised value is the appraisal district's determination of your property's value — generally its market value as of January 1. For a residence homestead, state law caps how much the appraised value can rise from one year to the next: for a homeowner who qualifies for the homestead exemption, the appraised value may not increase more than 10 percent per year (plus the value of any new improvements), regardless of market value. The cap applies only to property receiving a residence homestead exemption and takes effect the January 1 after the first year you qualify.

A separate "circuit breaker" limitation applies to certain non-homestead real property, capping annual appraised-value increases at 20 percent for eligible properties, subject to a maximum eligibility value that the Comptroller adjusts annually; that limitation is scheduled to expire after the 2026 tax year.

Taxable value

Taxable value is what your taxes are actually calculated on: the appraised value minus any exemptions that apply. A $300,000 home with a $140,000 school district homestead exemption is taxed by the school district as if it were worth $160,000. Taxing units may offer additional optional exemptions.

Why the difference matters for a protest

A protest challenges the appraised value. Lowering appraised value can lower taxes, but the connection is not one-to-one: exemptions, limitations, and each taxing unit's rate all sit between the two numbers. Also, the appraisal district does not set your tax rate — the governing bodies of your taxing units do. That is why "my taxes are too high" and "my appraised value is too high" are different claims, and the ARB hears the second one.

Worked example (illustrative)

Illustrative example with made-up round numbers — not a valuation, not your property, and not a prediction of any tax bill. Real bills depend on your actual values, exemptions, and each unit's adopted rate.

1. Inputs: appraised value $320,000 (up from $300,000 last year); $100,000 homestead exemption; combined tax rate of $2.20 per $100 of taxable value.
2. Step — taxable value: $320,000 − $100,000 = $220,000 taxable.
3. Step — bill at current value: $220,000 × 2.20 / 100 = $4,840 (illustrative).
4. Step — what a successful protest changes: if the appraised value came down to $300,000, taxable value becomes $200,000 and the illustrative bill becomes $4,400 — about $440 less at the same rates.

What this suggests: the tax effect of a protest equals the value reduction times the combined rate — here 100:2.2, so every $1,000 of appraised value is worth about $22/year in this example.

What it does NOT show: whether your value is wrong; whether rates would change; the effect of the homestead cap; or any guarantee of outcome. Your actual figures come from your notice and your taxing units' adopted rates.

Where to see both numbers

Your notice of appraised value lists the preceding year's appraised value and taxable value, the current year's appraised value, and the kind and amount of each exemption. See our page on reading your property tax notice and on exemptions.