In Dallas County, the assessed value of a property may be limited, or “capped,” each year. This limitation restricts the increase in the property’s assessed value for tax purposes to a maximum of 10% over the previous year’s assessed value, excluding new improvements. For example, if a home was appraised at $200,000 last year, even if its market value increases significantly, the assessed value for property tax calculation this year would be capped at $220,000 (a 10% increase).
This provision offers homeowners a degree of protection against rapidly escalating property taxes, especially in areas experiencing significant growth and rising property values. It provides predictability and stability in tax bills, allowing homeowners to better budget their finances. Historically, this cap was implemented to address concerns about homeowners being priced out of their homes due to soaring property tax assessments.
