HB 563 Cuts the Homestead Appraisal Cap From 10% to 3%

Your house did not get bigger.

Your appraisal did.

House Bill 563 says the most it can climb in one year is 3 percent, not 10.

Plain English summary

Right now Texas law lets the appraisal district raise the taxable value of your homestead by up to 10 percent a year. That is the homestead cap.

On November 9, 2026, State Rep. Jared Patterson filed House Bill 563 to cut that cap to 3 percent. He also filed House Joint Resolution 38, a constitutional amendment that has to pass first. In the Senate, Sen. Flores filed identical bills: Senate Bill 298 and Senate Joint Resolution 14.

If the Legislature passes it and voters approve the amendment on November 2, 2027, the new cap starts January 1, 2028.

Why it matters

In East Texas a lot of families are house rich and cash poor.

They bought years ago. The house is paid off or close to it. The paycheck did not go up 10 percent. The appraisal notice did.

That notice is how people get taxed out of a home they already paid for.

A cap does not stop the climb. It slows it down. On a homestead appraised at $200,000, a 10 percent cap lets next year's taxable value go as high as $220,000. A 3 percent cap stops it at $206,000. That is simple math on the bill's formula, not a forecast for your house.

The receipt

FACT: HB 563 (90th Legislature, Regular Session) by Patterson was filed November 9, 2026. It amends Tax Code Section 23.23(a), changing "10 percent" to "three percent" of the prior year's appraised value. The limit is the lesser of the most recent market value, or last year's appraised value plus 3 percent plus the market value of new improvements. TLO bill history, bill text.

FACT: HB 563 applies only to residence homesteads. It takes effect January 1, 2028, and only if voters approve the constitutional amendment. If voters say no, the act has no effect.

FACT: HJR 38 by Patterson amends Article VIII, Section 1(i) of the Texas Constitution, changing 110 percent to 103 percent. It sets the election for November 2, 2027. The limit still ends when neither the owner nor a spouse or surviving spouse qualifies for the homestead exemption. HJR 38 text.

FACT: SB 298 and SJR 14 by Flores are listed by the Legislature as identical companions. SB 298 history.

FACT: A constitutional amendment needs a two thirds vote of all members of each house before it goes to voters. Texas Constitution Art. XVII.

DOCUMENTED INFERENCE: The Texas Tribune reports Patterson is a Frisco Republican, Democrats now hold the House majority, Republicans hold the Senate, and the session convenes January 12, 2027. Texas Tribune, Nov. 9, 2026.

What Ryan says

RYAN STATEMENT: Too many Texans feel like they never really own their home. They rent it from the county.

This bill does not fix that. But it is the first bill I have seen this filing week that speaks straight to the appraisal notice in your mailbox.

Three percent is closer to how a working family's income actually moves.

Here is my test for it. It needs two thirds in both chambers. A Republican Senate and a Democrat House. If this is really about families keeping their homes, it should not be a party fight. Watch who signs on and who stalls it in committee.

And watch the next move. When appraisals get capped, local governments still set the rate. If the rate goes up to make up the difference, you got a cap on paper and the same bill in the mail.

Same house. Same family. Show me the evidence the bill goes down.

What this does not prove

It does not prove this bill will pass. It was filed. That is all.

It does not lower any tax rate. It limits appraised value on homesteads only. Cities, counties, and school districts still set their rates.

It does not cover rentals, land, or business property. The text says residence homestead.

It does not prove anyone's tax bill will drop. A slower climb is not a cut.

What it does prove

It proves a real, filed bill would cut the homestead appraisal cap from 10 percent to 3 percent.

It proves the people get the final word. Nothing changes unless Texas voters approve it in November 2027.

It proves there is an identical bill in the Senate, so both chambers have something to act on.

The bottom line

Your appraisal should not grow faster than your paycheck.

HB 563 and HJR 38 put a number on that: 3 percent.

Now we find out who means it.

Do not threaten anyone. Do not harass anyone. Do not contact anyone in my name. Read it. Share it. Send receipts, evidence, witnesses. Put eyes on the record.