New Construction Property Taxes in Denton County
Denton County added more than 47,000 single-family homes since 2021. Here's how new builds get valued, why year one is uncapped, and how to protest.
Key Takeaways:
- 47,337 single-family homes on Denton CAD's 2026 roll were built in 2021 or later.
- Their median value was $189 per square foot, below $203 for homes built 2011–2020.
- The 10% homestead cap starts the year after your first homestead year, so year one isn't capped.
- New improvements are added at market value even after the cap kicks in.
Reviewed November 4, 2026.
Quick answer: new builds in Denton County get appraised at full market value, and the 10% homestead cap doesn't protect your first homestead year. That makes the first two years the most important time to check your value and protest. Full process: Denton County property tax protest.
General information, not legal advice.
Denton County is a new-build county
We looked at single-family homes on Denton CAD's 2026 roll. More than 47,000 were built in 2021 or later. That's about one in six homes in the county.
| Year built | Homes |
|---|---|
| 2021 | 10,642 |
| 2022 | 11,126 |
| 2023 | 9,950 |
| 2024 | 9,478 |
| 2025 | 6,165 |
| Built | Homes | Median 2026 value | Median $/sq ft |
|---|---|---|---|
| 2021 or later | 47,337 | $444,754 | $189 |
| 2011–2020 | 67,068 | $520,000 | $203 |
| Before 2011 | 162,419 | $391,000 | $192 |
Source: TaxDrop analysis of Denton CAD 2026 appraisal roll, state class A1, market value over $50,000. 2025 counts may be incomplete because some homes finish after January 1.
In this appraisal-roll sample, newer homes carry a lower median appraised value per square foot than homes built 2011–2020. Part of that is location: a lot of new building is farther out, in places like Aubrey, Little Elm and Justin. These group medians do not establish whether an individual home is over-appraised. Compare similar properties and account for location, size and condition.
Why year one isn't capped
Texas caps a homestead's appraised value at 10% growth a year. But the cap starts on January 1 of the year after your first year with the homestead exemption (Tax Code §23.23). So:
- Year one as a homestead: full market value. No cap.
- Year two on: appraised value can rise no more than 10% a year, plus new improvements.
That makes your first homestead value the base the cap grows from. Get it right and the cap works for you for years. Get it wrong and you're capping off a number that was too high.
What to check on a new build
- January 1 status. Texas values property as of January 1 (§23.01). If your home wasn't finished then, your record shouldn't show a finished home.
- Square footage and features. Builder plans and the appraisal record don't always match. Compare them.
- Lot and land value. Premium lots get priced up. Make sure yours is really the lot on record.
- Builder incentives. Rate buydowns and closing credits can mean the price on paper is higher than the real deal. Your closing statement shows it.
- Resales, not list prices. Builder price sheets aren't sales. Resales of similar homes nearby are stronger evidence.
Later upgrades
A pool, an outdoor kitchen or an addition counts as a new improvement. It's added at market value on top of the capped amount. Repairs and maintenance aren't new improvements (§23.23).
Don't skip the homestead exemption
File for your homestead exemption with Denton CAD as soon as the home is your main residence. It removes $140,000 from your school district value, and it starts the clock on the cap. See the 10% homestead cap explained.
Want us to check your new build?
TaxDrop's licensed Texas consultants compare your value against resales and file your Denton County protest. Start with the free over-assessment check at app.taxdrop.com.
Sources: TaxDrop analysis of the Denton CAD 2026 roll; Tax Code §23.23; §23.01; Denton CAD FAQ; Texas Comptroller: exemptions.
Build your file with our Texas property tax protest evidence checklist. It explains how to organize comparable sales, appraisal comparisons and condition evidence.
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FAQs
Is the 10% cap in place my first year in a new home?
No. The cap starts on January 1 of the year after your first year with a homestead exemption. Your first homestead year is valued at full market value.
Can I protest a brand-new home's value?
Yes. Any owner can protest. Your contract price is evidence, but so are resales of similar homes in your community and nearby.
My home wasn't finished on January 1. How is it valued?
Texas values property as of January 1. A home under construction then should reflect its condition on that date. Check your record and protest if it shows a finished home that wasn't.
Do upgrades I add later raise my value past the cap?
New improvements, like a pool or an addition, are added at market value on top of the capped amount. Repairs and maintenance aren't new improvements.
Should I file my homestead exemption right away?
Yes. File with Denton CAD as soon as the home is your main residence. The exemption and the cap both depend on it.
Ryder Meehan
Ryder Meehan is the Co-Founder of TaxDrop and a Licensed Property Tax Protest Consultant
