How the Texas Property Appraisal System Works (2026 Explainer)
Last updated April 26, 2026 · Sources: Texas Tax Code, Texas Comptroller PTAD
Texas has no state property tax. 253 CADs appraise 254 counties each year as of January 1. The Texas Comptroller monitors CADs but does not appraise property. Three values matter: market value, appraised (capped) value, and taxable value. You can protest your value annually.
No State Property Tax
Texas repealed its state property tax in 1982. All property taxes are levied by local taxing units — school districts, cities, counties, water districts, hospital districts, and other special districts. Each sets its own rate.
The Texas Comptroller's Role (PTAD)
The Texas Comptroller's Property Tax Assistance Division (PTAD) does not appraise property. Its role is oversight and education:
- School District Property Value Study (SDPVS) — determines whether each CAD is appraising school district property at or near 100% of market value. Results affect state education funding.
- Appraisal District Review (ADRS) — biennial audits of CAD operations, governance, and procedures.
- Methods and Assistance Program (MAP) — technical assistance for smaller CADs.
- Binding Arbitration Administration — oversees the Chapter 41A binding arbitration program.
253 CADs for 254 Counties
Each Texas county has a Central Appraisal District — except Potter and Randall counties, which share the Potter-Randall Appraisal District (PRAD) at 5701 Hollywood Rd., Amarillo TX 79110.
CADs are governed by a board of directors elected by the taxing units they serve. The chief appraiser is a professional hired by the board and is responsible for all appraisals. The Taxpayer Liaison Officer (TLO) handles complaints and is independent of the chief appraiser.
Mass Appraisal Under USPAP Standard 6
CADs use mass appraisal under USPAP Standard 6 — the same methodology used by large government assessors worldwide. Rather than appraising each property individually, they build statistical models calibrated to market data. Texas law requires reappraisal at least every 3 years (§25.18), though most urban CADs reappraise annually.
The valuation date is January 1 (§23.01). Condition, size, use, and comparable sales as of January 1 govern the appraisal — events after that date do not affect the current year's value.
Three Values That Matter
- Market Value — the price a willing buyer and seller would agree to as of January 1 (§23.01). The CAD's target.
- Appraised (Capped) Value — for homesteaded properties, this cannot exceed the prior year's appraised value by more than 10% (§23.23 "homestead cap"). For non-homestead properties ≤$5M, capped at 20% under §23.231 (sunsets Dec 31, 2026).
- Taxable Value — appraised value minus exemptions (homestead, senior, veteran, ag, etc.). Taxing units multiply their rate by taxable value to get your tax bill.
The Protest Process
Property owners may protest their appraised value by filing Form 50-132 with the CAD by the protest deadline (May 15 or 30 days after notice, §41.44). Protests proceed in this order:
- Informal hearing — meet with a CAD appraiser. Most residential cases settle here.
- Formal ARB hearing — before the Appraisal Review Board, independent of the CAD.
- Appeal — district court (Ch. 42), binding arbitration (Ch. 41A, ≤$5M), or SOAH ($1M+ commercial).
5-Year Homestead Audit Cycle
Under SB1801 (2023), adding §11.43(h-1), CADs must audit homestead exemptions on a rolling 5-year cycle. If your exemption is audited, you must confirm you still occupy the property as your primary residence. Non-response results in exemption removal.