As of November 10, 2026, Texas House Bill 563 proposes to lower the yearly cap on homestead appraisal increases from 10 percent to 3 percent. Rep. Jared Patterson filed it November 9, 2026. It would start January 1, 2028, and only if Texas voters approve a constitutional amendment on November 2, 2027. The cap limits how fast a home's appraised value can rise. It does not change tax rates or exemptions, so it does not promise a lower tax bill.
I'm Joni Freeman, PharmD, Principal Broker of JL Marsaw & Co in Frisco, Texas. Property taxes are part of what it costs to own a home in Dallas-Fort Worth, so I read new bills closely and explain them in plain words.
Every year, the county appraisal district puts a value on your home. That is the appraised value. Texas already limits how much the appraised value of a homestead (the home you live in and claim the homestead exemption on) can rise in one year. HB 563 would tighten that limit. According to Texas Legislature Online, accessed November 10, 2026, the only action listed on the bill is its filing on November 9, 2026. Nothing in it is law today. Because the limit is written into the Texas Constitution, the bill cannot work alone. A companion measure, House Joint Resolution 38 (HJR 38), is the proposal that would put that constitutional change in front of voters. A joint resolution is the form the Legislature uses to propose a change to the state constitution.
What does HB 563 change, and how does 3 percent compare with 10 percent?
HB 563 changes one number in Section 23.23(a) of the Texas Tax Code: a homestead's appraised value could rise 3 percent a year instead of 10 percent, plus the value of any new improvements.
Appraised value can go up only to the lesser of the home's market value or last year's appraised value plus the cap. So the cap matters only when market value rises faster than the cap.
Source: Texas Legislature Online, 90(R) HB 563 and HJR 38, introduced text, accessed November 10, 2026.
Would HB 563 lower my property tax bill?
Not by itself. HB 563 limits one input, the appraised value, and it changes neither exemptions nor tax rates.
The Texas Comptroller defines taxable value as appraised value minus any exemptions that apply. The state's property tax transparency page says the budgets taxing units adopt, and the tax rates they set to fund them, play a significant role in what each owner pays. I'm a broker, not a tax professional, so for your own numbers, check with your county appraisal district or a tax professional.
When could a 3 percent homestead cap take effect?
The earliest date is January 1, 2028, and only if Texas voters approve a constitutional amendment first. Without it, HB 563 has no effect.
HJR 38 would put that amendment on the ballot on November 2, 2027. It changes the figure in the Texas Constitution from 110 percent to 103 percent of last year's appraised value. The 90th Legislature convenes January 12, 2027, according to KVUE
Does the cap cover every property, and does it follow the house?
No on both. HB 563 covers residence homesteads only, and it does not change the rules for rentals, second homes, or commercial property.
The limit follows the owner who qualifies for the homestead exemption, not the house.
Frequently Asked Questions
Is Texas HB 563 law right now?
No. HB 563 was filed on November 9, 2026, for the 90th Legislature. As of November 10, 2026, the only action listed on Texas Legislature Online is the filing. Even if lawmakers pass it, it has no effect unless Texas voters approve a constitutional amendment, and it would start no earlier than January 1, 2028.
Who filed HB 563, and is there a Senate version?
State Rep. Jared Patterson is listed as the author. Texas Legislature Online lists Senate Bill 298, under the author name Flores, as an identical companion bill. The constitutional amendment that goes with it is House Joint Resolution 38, also by Patterson.
Does HB 563 change the homestead exemption amount?
No. The bill amends only Section 23.23(a) of the Tax Code, which covers the limit on appraised value increases. The homestead exemption is a separate rule, and neither HB 563 nor HJR 38 changes it. Taxable value is appraised value minus any exemptions that apply.
Who should I talk to about Texas property tax changes and buying or selling a home in Dallas-Fort Worth?
I'm Joni Freeman, and my associates at JL Marsaw & Co and I work with home buyers and sellers across Dallas-Fort Worth and walk through ownership costs, including property taxes, before an offer is written or a home is listed. Watch my affordability series and follow along for more takes on the American Dream of homeownership @jl_marsaw.
Sources
- Texas Legislature Online, 90(R) HB 563 and HJR 38, bill text and history, accessed November 10, 2026
- Texas Comptroller of Public Accounts, Texas Property Tax report, publication 96-1728-12-13
- texas.gov/PropertyTaxes (Property Tax Transparency in Texas), accessed November 10, 2026
- KVUE, November 2026, for the January 12, 2027 start of the 90th Legislature
Published: November 10, 2026 | Last updated: November 11, 2026
Joni Freeman, PharmD, is Principal Broker and Founder of JL Marsaw & Co, serving Frisco, Celina, Prosper, McKinney, and Dallas-Fort Worth since 2015. Licensed broker in Texas (TREC #0592325) and Georgia (#414657). Doctor of Pharmacy, Xavier University of Louisiana. Director, Texas REALTORS® Board of Directors. Chair, MetroTex Young Professionals Network. ABR, SRS, Pricing Strategy Advisor, New Home Co-Broker. 214-770-7762 | [email protected]
214-770-7762 | [email protected] | www.jlmarsaw.com
