Printable cheat sheet

    Texas property tax cheat sheet

    Built for Texas sales agent exam prep. Use this to separate appraised value, the homestead exemption, the rate per $100, and the final ask before calculating.

    Use the calculator
    Start with valueAppraised value - homestead exemption

    Subtract the homestead exemption from appraised value before applying the rate.

    Texas rate unitPer $100 of value

    Divide taxable value by 100, then multiply by the rate per $100.

    Tax formula(Value - exemption) / 100 x rate

    This gives the annual property tax using the rate stated per $100 of value.

    Mills conversion1 mill = $0.10 per $100

    If a question states mills, divide mills by 10 to get the per-$100 rate, or divide value by 1,000.

    10% appraisal capPrior appraised x 1.10

    A homestead's appraised value cannot rise more than 10% per year (plus new improvements).

    EligibilityHomestead only

    The exemption and the 10% cap apply only to a qualified primary residence, not rentals or land.

    The exam setup rule

    1. Identify whether the question gives appraised value or taxable value.
    2. For a homestead, apply the 10% appraisal cap if a year-over-year increase is described.
    3. Subtract the homestead exemption stated in the question before applying the rate.
    4. Divide taxable value by 100 before multiplying by the rate per $100.
    5. Stop when the question asks for taxable value or the annual tax.

    Five worked examples

    Basic per $100$260,000 taxable value at $2.10 per $100

    $260,000 / 100 x $2.10 = $5,460.

    Homestead exemption$310,000 appraised value, $40,000 homestead exemption, $1.95 per $100

    Taxable value $270,000. $270,000 / 100 x $1.95 = $5,265.

    10% appraisal capLast year appraised $250,000, market value now $300,000, 10% cap

    $250,000 x 1.10 = $275,000 capped appraised value (use this, not $300,000).

    Rental, no exemption$180,000 appraised value at $2.40 per $100

    $180,000 / 100 x $2.40 = $4,320. No homestead exemption applies.

    Mills conversionRate stated as 19.5 mills

    19.5 / 10 = $1.95 per $100.

    Traps to check

    1. Do not divide by 1,000 when the rate is per $100.
    2. Do not multiply appraised value before subtracting the homestead exemption.
    3. Do not treat the exemption as a dollar-for-dollar tax credit.
    4. Do not apply the homestead exemption or the 10% cap to a rental or second home.
    5. Do not use market value for a homestead when the 10% cap gives a lower appraised value.
    6. Do not use a live tax bill shortcut. Follow the numbers in the exam question.

    Sanity check

    1. Higher taxable value should create higher tax when the rate stays the same.
    2. A higher rate per $100 should create higher tax when the taxable value stays the same.
    3. A larger homestead exemption should lower tax, not raise it.
    4. For a homestead, the capped appraised value should never exceed last year's appraised value plus 10% (plus improvements).
    Practice the patternPass Texas drills property tax, homestead, and mixed closing math.

    Use the calculator, Math Coach, Trap Library, and Texas-specific questions at passtexasrealestate.com.

    Get Pass Texas

    Sources: Texas Comptroller property tax and exemption guidance, Texas Tax Code Ch. 11 and Sec. 23.23 (the 10% homestead appraisal cap), and TREC / Pearson VUE Texas Real Estate testing materials. For exam prep only, not tax, appraisal, closing, or legal advice.

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