Money & Risk | Property Tax
Texas Property Tax for Duplex and Fourplex Owners (2026)
Texas has no state income tax, and property tax is the tax a small multiplex owner deals with every year. How much you pay depends on two things this page explains: whether you live in one of the units, and how fast the appraisal district may raise your value. The 2025 Legislature raised the school homestead exemption to $140,000. The 20 percent cap on rental property values runs only through the 2026 tax year.
Texas property tax in six facts
- The school district homestead exemption is $140,000 of appraised value, set by SB 4 (2025) and in force since November 4, 2025. Source: Tax Code 11.13
- Owners 65 or older or disabled get an extra $60,000 school district homestead exemption under Tax Code 11.13(c). Source: Texas Comptroller, exemptions
- A homestead's appraised value can rise by no more than 10 percent a year, plus the value of new improvements. Source: Tax Code 23.23
- Other real property, rentals included, valued at $5,320,000 or less in 2026 has a 20 percent yearly cap on appraised value, and that law expires December 31, 2026. Source: Texas Comptroller, valuing property
- A protest is due by May 15 or 30 days after the appraisal notice is delivered, whichever is later. Source: Tax Code chapter 41
- The Texas Constitution bars a state tax on the net incomes of individuals, a rule added November 5, 2019. Source: Texas Constitution Article VIII
No State Income Tax
Article VIII, Section 24-a of the Texas Constitution says: "The legislature may not impose a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income." That text was added November 5, 2019. Section 24-b, added November 4, 2025, bars a state tax on individuals' realized or unrealized capital gains, with property, sales and use taxes excepted. Property in Texas is valued by an appraisal district and taxed by each local taxing unit, such as the school district, the county and the city.
The $140,000 School Homestead Exemption
A homestead exemption removes part of your home's value from tax. Under Tax Code 11.13(b), "An adult is entitled to exemption from taxation by a school district of $140,000 of the appraised value of the adult's residence homestead." SB 4 (2025) set that amount, and the statute's history note gives it effect on November 4, 2025, the same date the matching text in the Texas Constitution (Article VIII, Section 1-b(c)) was amended. SB 23 (2025) raised the extra exemption for owners 65 or older or disabled to $60,000, under 11.13(c), from the same date.
The Comptroller's exemptions page gives an example: "if your home is appraised at $300,000 and you qualify for a $140,000 exemption ... you will pay school taxes on the home as if it was worth only $160,000." Two more exemptions can stack on top. Any taxing unit may adopt a local option homestead exemption of up to 20 percent of appraised value, and that exemption cannot be less than $5,000. A county that collects a farm-to-market road or flood control tax must give a $3,000 exemption.
How the 2025 Increase Became Law
The higher exemptions needed two steps: a statute and a change to the Texas Constitution. The Governor signed SB 4 and SB 23 on June 16, 2025. The statute's history notes list both as "eff. November 4, 2025," and the constitutional text in Article VIII, Section 1-b carries the note "Subsec. (c) amended and (q), (r), and (z) added Nov. 4, 2025." November 4, 2025 is the date to use for both amounts.
Search results sometimes mix this change up with other laws. The Texas increase is SB 4 and SB 23 with the matching constitutional amendment. California's Proposition 13 is a separate California rule on assessed value, compared on the Texas vs California page. Cite the Texas increase by bill number and by Tax Code 11.13.
Living in One Unit of a Duplex
Tax Code 11.13(j)(1) defines a residence homestead as "a structure (including a mobile home) or a separately secured and occupied portion of a structure (together with the land, not to exceed 20 acres ...)" that individuals own and occupy as their principal residence. Under that definition, if you live in one side of a duplex, or one unit of a fourplex, you can claim the homestead on your unit.
In that case the exemption and the 10 percent cap apply to your unit and its share of the land, and the rental units are non-homestead property. Each appraisal district decides how to split the value of one building between the owner's unit and the rental units, so ask yours how it divides a duplex or fourplex before you file.
| Rule | Your own unit (homestead) | Rental units (non-homestead) | Law |
|---|---|---|---|
| School homestead exemption | $140,000 of the appraised value of the owner's own unit (plus $60,000 if 65 or older or disabled) | None | Tax Code 11.13(b), (c) |
| Local option homestead exemption | Up to 20 percent of appraised value, at least $5,000, if the taxing unit adopts it | None | Comptroller exemptions page |
| Yearly cap on appraised value | 10 percent a year on the homestead portion, plus new improvements | 20 percent a year if valued at $5,320,000 or less in 2026; the cap expires December 31, 2026 | Tax Code 23.23, 23.231 |
| When the cap starts | January 1 of the year after the owner first qualifies | January 1 of the year after the first January 1 the owner owns the property | Tax Code 23.23, 23.231 |
Sources: Tax Code 11.13, Tax Code 23.23 and 23.231, Comptroller exemptions page, Comptroller valuing property page.
The 10 Percent Homestead Cap
Tax Code 23.23 limits how fast the appraised value of a homestead can grow for tax purposes. Each year it may not exceed the sum of 10 percent of last year's appraised value, last year's appraised value, and the market value of all new improvements. In plain terms: your taxable value can rise by 10 percent a year at most, plus whatever you build. The cap starts on January 1 of the year after you first qualify for the exemption.
"New improvements" matter for a builder. If you live in a house and add a second unit, the value of that new unit is added on top of the capped figure. The cap applies to the value you already had, and the new unit's market value is added on top.
The 20 Percent Cap for Rentals, Through 2026
Tax Code 23.231 is the "circuit breaker" for real property that is not a homestead, which includes rental duplexes, triplexes and fourplexes. It limits the yearly rise in appraised value to 20 percent of last year's value, plus new improvements. It covers property valued at no more than these thresholds, from the Comptroller's valuing property page: $5,000,000 in 2024, $5,160,000 in 2025 and $5,320,000 in 2026. The cap starts on January 1 of the year after the first January 1 you own the property. Read with the end date below, that means a property must have been owned on January 1, 2025 to get the cap for the 2026 tax year.
The cap is temporary. Section 23.231(k) says: "This section expires December 31, 2026." The Comptroller repeats that "The circuit breaker limitation expires Dec. 31, 2026," and the Harris Central Appraisal District says the Legislature "has currently only authorized the circuit breaker limitation for qualifying properties for the 2024, 2025, and 2026 tax years." Unless the Legislature passes a new law, rental property loses the 20 percent cap after the 2026 tax year.
One detail helps after a storm. Under Section 23.231(h), a replacement structure for one "rendered uninhabitable or unusable by a casualty or by wind or water damage" does not count as a new improvement, so rebuilding what was lost does not add new value on top of the cap. A larger building, or one with a higher-quality exterior, is the exception. The insurance and flood page covers storm rules.
Deadlines Every Owner Should Know
| When | What | Law |
|---|---|---|
| January 1 | Valuation date. All taxable property is appraised at its market value as of January 1. | Tax Code 23.01 |
| January 1 to April 15 | Rendition statements for business personal property. Extended to May 15 on written request. | Tax Code 22.23 |
| Before May 1 | Homestead exemption application. The chief appraiser may extend up to 60 days for good cause. | Tax Code 11.43 |
| May 15, or 30 days after notice | Protest to the appraisal review board, whichever date is later. | Tax Code 41.44 |
| Within 30 days of the board order | Notice of appeal to the State Office of Administrative Hearings (SOAH). | Comptroller protests page |
| Within 90 days of the board order | $1,500 deposit for a SOAH appeal, filed with the chief appraiser. | Comptroller protests page |
Sources: Tax Code chapter 23, chapter 22, chapter 11, chapter 41 and the Comptroller protests page.
New Construction and the January 1 Date
Tax Code 23.01(a) says: "Except as otherwise provided by this chapter, all taxable property is appraised at its market value as of January 1." For a builder, that date matters. Keep dated photos and records of the property's condition on January 1 in case you need to protest the value.
If you own appliances, furniture or other business personal property in your rentals, Tax Code 22.23 sets the rendition window: a statement listing that property is due between January 1 and April 15, and the chief appraiser must extend it to May 15 on written request. Ask your appraisal district which items in a rental it treats as business personal property.
How to Protest Your Value
Every year the appraisal district mails a notice of appraised value. Under Tax Code 41.44(a)(1), a protest is due "not later than May 15 or the 30th day after the date that notice to the property owner was delivered," whichever is later. The protest goes to the appraisal review board, a panel that hears disputes over value. If you lose there, the Comptroller's protests page describes an appeal to the State Office of Administrative Hearings (SOAH): file notice within 30 days of the board's order, and "You must also file a $1,500 deposit with the chief appraiser within 90 days of receiving the order of determination."
Before you file, gather records of the property's condition on January 1 and the sale prices of similar buildings.
A Tax Rate Bill That Failed
In the 2025 second called session, SB 10 would have changed how some taxing units calculate their voter-approval tax rate, the rate above which an election is needed. It failed: its last action, on September 2, 2025, was "House refuses to adopt conference comm. rept." The rules on tax rates are unchanged by it. The other 2025 laws page lists every 2025 bill this guide checked.
Best For
- ✓ An owner who lives in one unit of a duplex or fourplex and files for the homestead on that unit.
- ✓ Owners 65 or older or disabled, who add $60,000 to the $140,000 school exemption.
- ✓ Rental owners who owned the property on January 1, 2025, while the 20 percent cap still runs.
Usually Fails When
- ✕ The plan assumes the 20 percent rental cap continues after the 2026 tax year.
- ✕ The owner misses the May 1 exemption deadline or the May 15 protest deadline.
- ✕ The budget treats a new unit as covered by the cap; new improvements are added at market value.
What To Verify Before Spending Money
- → How your appraisal district splits value between your unit and the rental units.
- → Which local option exemptions your city, county and school district have adopted.
- → Whether the Legislature has passed any law after 2026 on the rental cap.
Where to Go Next
Related on VanPlex: Texas vs California, which compares the Texas caps with California's property tax rules, and the Texas multiplex guide overview.
Frequently Asked Questions
Does Texas have a state income tax?
How much is the Texas homestead exemption in 2026?
Can I get a Texas homestead exemption on a duplex I live in?
What is the Texas 10 percent homestead cap?
What is the Texas 20 percent circuit breaker cap?
Does the Texas circuit breaker end after 2026?
When is the Texas property tax protest deadline?
When must I apply for a Texas homestead exemption?
How is new construction appraised in Texas?
What is the Texas over-65 homestead exemption amount?
When are business personal property renditions due in Texas?
Official sources (checked October 2026)
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