Taxable value is the portion of your property's value that's actually taxed. It's calculated by subtracting your exemptions from your assessed value.
In Texas: Taxable Value = Assessed Value - Exemptions
If your home is assessed at $400,000 and you have a $100,000 homestead exemption, your taxable value is $300,000. You only pay taxes on that $300,000.
Different taxing entities (schools, cities, counties) may have different exemption amounts, so your taxable value can vary by entity. School districts typically offer larger exemptions than cities or counties.
Lowering your taxable value is the key to reducing property taxes. You have two tools:
1. Exemptions: Apply for every exemption you qualify for. Homestead, over-65, disability, and veteran exemptions directly reduce taxable value.
2. Appeals: Challenge your assessed value if it's too high. A successful appeal lowers the base number before exemptions are applied.
Smart homeowners use both strategies. Claim all your exemptions AND appeal if your assessed value exceeds market value. Each tool amplifies the other.
A Texas homeowner with multiple exemptions:
Assessed value: $450,000
Exemptions by entity:
• School district: $100,000 homestead + $10,000 over-65 = $110,000
• County: $25,000 over-65
• City: $15,000 over-65
Taxable values:
• School district: $450,000 - $110,000 = $340,000
• County: $450,000 - $25,000 = $425,000
• City: $450,000 - $15,000 = $435,000
Each entity taxes a different amount based on their exemption offerings.
Your property tax notice or appraisal district website shows both assessed value and taxable value (after exemptions). Look for a breakdown by taxing entity to see how exemptions affect each portion of your bill.
No. Assessed value is what the county says your property is worth. Taxable value is assessed value minus exemptions—the amount you're actually taxed on. If you have no exemptions, they're equal.
Yes, two ways: (1) Apply for exemptions you qualify for—they directly reduce taxable value. (2) Appeal your assessed value—lowering the assessed value also lowers taxable value since it's the starting point for the calculation.