What to Know About the Texas Bill Requiring Annual Property Value Reappraisals

Key Takeaways:

• Current Appraisal Rules and How Tarrant County Nearly Changed It: Tarrant County tried to implement a biannual appraisal schedule, reducing residential revaluations to every two years. The move raised statewide concern due to its potential impact on school funding and uniformity across appraisal districts.
• Pushback and Introduction of House Bill 2786: State lawmakers responded with a new bill requiring annual reappraisals in counties with 75,000 or more residents. The legislation aims to maintain consistency, outline clearer appraisal notice requirements, and reinforce homeowners’ right to protest.
• What Annual Property Value Discourse Means for Texans: Homeowners and commercial property owners will now receive valuation updates each year. This change brings more accurate assessments but also demands faster responses to protest inflated values.

For Texas homeowners, property tax season often comes with a familiar rhythm: scan the notice, compare last year’s bill, and wonder how the numbers jumped again. However, that routine briefly looked like it might change. In 2024, the Tarrant Appraisal District (TAD) approved a plan that would have shifted residential appraisals to every two years. In early 2025, lawmakers responded with a new bill that reinstates annual property value appraisals statewide. 

At Texas Tax Protest, we know how quickly appraisal policy can shift and how confusing that makes things for property owners. Our team works closely with homeowners, commercial investors, and first-time filers to break down complex updates and uncover opportunities to reduce overvaluation. This post will walk through what the recent Texas annual property reappraisal bill means for you, how it could shape your future tax bill, and what steps to take.

Pushback Against Biannual Appraisals and What Comes Next

Tensions over appraisal schedules in Texas came to a head in mid-2024, when the Tarrant Appraisal District (TAD) approved a controversial plan that reduced residential reappraisals to once every two years. 

While intended to streamline internal operations, the change quickly raised red flags among school districts and lawmakers who warned it could jeopardize funding and weaken consistency across counties. By early 2025, new legislation was introduced to override the plan, and by 2026, annual appraisals are expected to become the statewide standard.

How the TAD Plan Sparked Statewide Concern

The decision to scale back reappraisal frequency prompted immediate criticism from education leaders and local officials. Several districts flagged potential shortfalls in state funding formulas, which rely on timely property value updates to determine budget allocations. By November, seven school districts had been marked as financially vulnerable under the new plan.

The concerns didn’t stop there. At the state level, Rep. Chris Turner voiced opposition, citing the risk of destabilizing property tax fairness across Texas. Under current law, appraisal districts are expected to follow a uniform process statewide. Any break from that, such as a two-year reappraisal cycle in one county, complicates compliance and introduces legal uncertainty for both property owners and taxing authorities.

Legislative Action to Reinstate Annual Appraisals

In response, House Bill 2786 was introduced in early 2025 to prevent appraisal districts from implementing non-standard reappraisal schedules. Filed by Rep. Turner shortly after becoming chair of the Texas House subcommittee, the bill aims to cement annual reappraisals as the default process statewide. 

This bill is designed to restore consistency, reduce confusion across counties, and protect the public funding that depends on accurate property valuations. Once signed into law, the annual reappraisal requirement will take effect in the 2026 tax year. For property owners across Texas, the 2025 notice could be the last issued under older practices.

What House Bill 2786 Means for Property Owners

House Bill 2786 outlines several major shifts for how property values will be assessed moving forward. From tighter appraisal timelines to standardized notice requirements, the bill aims to create a more consistent and transparent experience across Texas counties. Here’s a closer look at the key provisions expected to take effect by next year.

Annual Appraisals Required in Larger Counties

Under the new rule, appraisal districts in counties with populations of 75,000 or more must develop and implement plans for reappraising all properties every year. Previously, reappraisals could be triggered by a sale, renovation, or specific district schedule. Once the bill takes effect, values will be reviewed annually, regardless of those changes. This means more frequent updates to the assessed values listed on your tax roll, which could affect what you owe.

Statewide Standardization of Appraisal Methods

To reduce discrepancies between counties, the bill introduces clearer standards for how appraisals must be conducted. Districts will need to use consistent methods and criteria when evaluating properties, which reduces the likelihood of significant valuation differences between similar homes or buildings in neighboring areas. For property owners, this shift supports a more even playing field when it comes to tax liability.

Transparent Appraisal Notices with Math-Backed Comparables

One of the most notable changes involves how appraisal notices are structured. Under the bill, appraisal districts must include detailed breakdowns that show how a property’s value was calculated. These notices must also identify which comparable properties were used and explain what mathematical adjustments were made. This added visibility makes it easier for homeowners and commercial property owners to vet their appraisals and gather accurate evidence for protests.

Clearer Guidance for Appeals and Documentation

The right to protest remains unchanged, but the bill outlines more specific guidance for how protests should be handled. For instance, property owners submitting their comps will have clearer insight into what qualifies as a valid adjustment. The law also clarifies how supporting documents like inspection reports or contractor estimates may be considered by appraisal review boards.

Removed Changes That Affected Exemptions

The final version of House Bill 2786 removed earlier provisions that would have affected property tax exemptions. The substitute bill no longer changes how reappraisal frequency interacts with three key areas:

• Temporary exemptions for properties damaged by disaster.
• The 10% cap on increases for homesteaded properties.
• Circuit breaker limits for non-homesteaded real estate.

What the New Law Means for Texas Property Owners

Annual reappraisals may sound procedural on paper, but for property owners across Texas, this change carries significant financial and strategic weight. Here’s how the new schedule could reshape the way homeowners and commercial property owners manage their tax responsibilities year to year.

How Homeowners Are Affected

Texas homeowners already face a fast-moving real estate market. Now, with appraisal districts required to reassess property values each year, many households will feel the impact more directly on their annual tax bills.

• Annual assessments reflect current market highs: Property values are updated more frequently, which means rising prices in your neighborhood could result in steeper property tax bills.
• Comparable sales require closer scrutiny: Appraisal districts rely on comps to determine value, but those comps must be adjusted to account for differences in size, age, features, or condition. 
• Valuation errors become more common: With reappraisals happening every year, there’s a greater chance for discrepancies or miscalculations to slip through. Inaccurate square footage, outdated photos, or misclassified improvements could all lead to overvaluation.
• Homeowners must monitor notices: Property owners should expect a new appraisal notice each year and review it carefully. Early identification of inflated values gives you more time to prepare a protest using your own comps and supporting documentation.
• Tax caps still apply (only in certain cases): Texas law caps homestead taxable value increases at 10% per year. However, this protection doesn’t extend to second homes, rental properties, or undeveloped land.
• Declining values could bring temporary relief: While uncommon in a hot market, downturns or local price dips can reduce your assessed value, and your tax liability. Annual reviews give homeowners a better chance of benefiting when values fall.

How Commercial Property Owners Are Affected

Commercial properties, including retail centers, warehouses, and office buildings, are subject to many of the same appraisal requirements, but the implications often reach deeper into business operations and budgeting.

• Annual valuations affect long-term financial planning: Frequent reappraisals can cause yearly fluctuations in tax obligations, which complicates cash flow forecasting and profit projections for business owners and investors.
• Market volatility plays a greater role: Demand shifts in specific sectors, such as industrial warehouses or Class A office space, can drive property values up or down quickly. Annual assessments require commercial owners to stay attuned to those shifts.
• Comps must reflect income: Appraisal districts often compare similar properties using rental income data, vacancy rates, or amenities. Mathematical adjustments are made to account for differences like building conditions or tenant turnover.
• Errors in valuation can create oversized tax burdens: Mistakes in square footage, land use designation, or building classification can lead to inflated values. For commercial owners with multiple holdings, these errors compound quickly.
• Strategic protests require detailed documentation: Commercial property tax protests often rely on financials, third-party appraisals, and maintenance records. These documents should be gathered ahead of protest deadlines.
• No appraisal cap for commercial parcels: Unlike homesteaded homes, commercial properties have no statutory limit on annual increases. A sharp jump in market value can lead to a significant tax hike unless a successful protest is filed.

Final Thoughts

Annual reappraisal discourse can mark a significant shift for Texas homeowners and commercial property owners. Adjusting to this schedule means staying alert to how updated valuations could affect your property tax bill, and knowing what steps to take when those numbers seem off. 

That’s where our team at Texas Tax Protest can make a difference. We help clients cut through the confusion of appraisal district data and guide them through each step of the protest process. From identifying reliable comparables to applying precise, math-based adjustments, we bring together data-driven analysis and hands-on advocacy. That way, you spend less time second-guessing and more time focusing on what matters most—keeping your tax bill in check.

Read more: 

• The True Cost Of Homeownership: It’s More Than Just Your Mortgage
• Texas Vs. California Property Taxes: Which State Hits Your Wallet Harder?
• Home Equity Loan Vs HELOC: Breaking Down The Pros, Cons, And Use Cases

Frequently Asked Questions About the Texas Annual Property Reappraisal Bill

How often were Texas properties appraised before the new bill?

Before the new legislation, most Texas counties typically conducted property appraisals every one to three years, with schedules varying by county and sometimes by property type. Annual reappraisals were not the standard across the state, so values could stay the same for several years unless there was new construction, a significant remodel, or a specific reason for review.

Will this bill increase property taxes in Texas?

The new annual reappraisal requirement doesn’t automatically raise your property taxes. What it changes is how frequently your property’s market value is reviewed. Tax bills rise when valuations increase and taxing entities raise rates, but annual reappraisals can also mean values are kept more accurate and up-to-date, which sometimes works in the homeowner’s favor if market values drop.

Can property owners dispute their annual appraisals in Texas?

Absolutely. Property owners have the right to protest their appraised values each year. Texas Tax Protest can help guide you through the process of compiling evidence, selecting comparable properties, and understanding the specific adjustments that appraisers make based on differences in property size, features, age, and location.

What are the criteria for appraising property values under the new bill?

Appraisers analyze recent sales of comparable properties and make mathematical adjustments to account for differences in square footage, age, condition, lot size, and unique amenities. Local market data and changes in neighborhood trends are also taken into account, ensuring that each property is valued as accurately as possible.

Is there a cap on how much a property’s value can increase annually in Texas?

Texas law caps annual increases in taxable value for homesteaded properties at 10 percent, unless there are new improvements like home additions. Non-homestead properties don’t have this cap, so values can change more significantly based on market trends.

What measures are being taken to ensure fair and accurate property reappraisals in Texas?

Appraisal districts use advanced technology, market analysis, and stringent state guidelines to set property values. Counties regularly calibrate their models using recent sales data, property inspections, and input from professional appraisers. Transparency and the right to protest help catch errors or inconsistencies, so property owners are protected from over-valuation.

Are there any exemptions to the annual property reappraisal requirement?

Certain properties may qualify for exemptions, which can reduce your taxable value, though they do not exempt a property from being reappraised annually. The annual review still occurs, but these exemptions help lower the final tax bill. Texas Tax Protest’s team can help determine which exemptions you may qualify for and handle the application process.

Sources:

1. Fort Worth Report. (2024, November 26). Chief appraiser flags six Tarrant school districts that could be at risk of state funding cuts. https://fortworthreport.org/2024/11/26/chief-appraiser-flags-six-tarrant-school-districts-that-could-be-at-risk-of-state-funding-cuts/
2. KERA News. (2025, February 14). New bill would make part of Tarrant Appraisal District’s reappraisal plan illegal. https://www.keranews.org/texas-news/2025-02-14/new-bill-would-make-part-of-tarrant-appraisal-districts-reappraisal-plan-illegal
3. Texas Legislature. (2025). House Bill 2786 analysis, 89th Legislature. https://capitol.texas.gov/tlodocs/89R/analysis/html/HB02786H.htm