The 20% tax cap ends December 31. Sell, hold, or protest in 2027?
If you own a Houston rental or a commercial building, the limit that has held your taxable value down expires this year. In 2027 your value can jump toward full market value in a single year. I'm the agent who can show you both sides: what the new tax bill does to your property's value, and whether to sell, hold, or fight the number.
Send me my property's numbers What's my property worth?What is ending
Since 2024, Texas has limited how fast the appraised value of non-homestead real property can rise to 20% a year (Tax Code §23.231). It covers property valued at $5 million or less, adjusted each year ($5.32 million for 2026). That limit expires December 31, 2026, and the Legislature did not renew it in its 2025 session.
Who it hits: rental homes, small apartment buildings, land, and commercial and industrial buildings, including the ones owners run their own businesses from. Who it doesn't: homesteads, which keep their separate 10% cap.
How big the jump can be in Houston
From HCAD's 2026 certified values, owner-occupied commercial and industrial buildings in Houston that are currently held down by the cap:
Source: HCAD 2026 Certified Values data files (real property accounts, state classes F1 and F2, Houston site addresses, owner mailing address at the property). Every property is different; your number depends on your account.
Your three options
| Sell | A higher tax bill lowers what an investor will pay for the same rent. If you were going to sell in the next few years, the price conversation changes once the new value lands. I'll show you what your property likely sells for today and after the reset. |
| Hold | Run the numbers with the new tax bill in them: rent, expenses, and what's left. Some owners raise rents, some refinance, some sell later. Know before the bill arrives, not after. |
| Protest | For commercial, industrial and business property, I review HCAD's value against comparable sales and equal-and-uniform evidence and file the protest. Deadline: May 15, 2027, or 30 days after the date on your notice if later. You appoint me with the Comptroller's Form 50-162. |
No outcome is guaranteed. Every protest depends on the evidence. Reviews are free; I'll tell you before any fee applies.
Why owners call me
Tax firms don't sell buildings, and most agents don't read appraisal district files. I do both: licensed Texas real estate agent and Texas Registered Property Tax Consultant (verify TDLR #13690). Send the address and I'll send back your 2027 exposure, what the property would likely sell for, and whether a protest is worth filing.
Get my numbers Call or text (832) 621-2547