The 20% Circuit Breaker Is Not a Home Cap

The circuit breaker is not a second cap for a homesteaded house. For tax year 2026, it covers certain real property that is not a homestead. The market value must be $5.32 million or less. The limit is automatic. Land with some types of special appraisal is left out.

The rule limits appraised value, not market value or the final bill. TCAD compares market value with a second number. That number is last year's appraised value, plus 20 percent, plus the value of new work. TCAD uses the lower amount.

The program ends after December 31, 2026, unless Texas changes the law. The 10 percent homestead cap is a separate rule. Check the Comptroller's rule for the tax year before using either cap in a home purchase or tax estimate.