Ace the Texas Law Module 2026 – Smash the 20-Hour Power Test!

In Texas, property assessment for tax purposes is primarily determined by its market value as established by local appraisal districts. Each local appraisal district is responsible for conducting annual evaluations of real and personal properties within their boundaries. This method ensures that the assessed value reflects the current market conditions, providing an accurate representation of what the property is worth in the real estate market at the time of assessment.

The emphasis on market value allows for a more equitable system where property owners are taxed based on what their property could realistically sell for, rather than arbitrary measures such as purchase price or property size. Using market value also means that fluctuations in the real estate market will directly impact the assessed value, ensuring that property taxes are aligned with current economic conditions. This approach is crucial for maintaining fair taxation across different types of properties and helps support local government services funded by property taxes.