On a Westlake listing, the property tax figure shows what the current owner paid. It says very little about what the next owner will pay. Texas limits how fast a homestead's appraised value can rise, and that limit belongs to the owner, not the house. On the first January 1 after the home sells, the limit expires. In a market where Travis Central Appraisal District puts the median Eanes ISD homestead at more than $1.5 million, the reset can outweigh every rate cut the local taxing bodies adopted this fall.
The Cap That Leaves With the Seller
The Texas Comptroller explains the rule, which sits in Tax Code Section 23.23. A qualifying homestead's appraised value can rise no more than 10 percent a year, plus the value of any new improvements, and never above market value. The limit applies only to a property with a residence homestead exemption. It takes effect on January 1 of the tax year after the owner qualifies, and it expires on January 1 of the tax year after that owner stops qualifying.
For a buyer, the timing works like this:
- The year you close. The seller qualified as of January 1, so that year's appraisal still reflects the seller's history.
- The next January 1. The seller no longer qualifies, so the cap expires. The appraisal district can value the home at full market value.
- Your first homestead year. TCAD says a general homestead exemption ordinarily requires that you own and occupy the home on January 1, with limited exceptions for an exemption from the move-in date.
- The year after that. Your own 10 percent cap starts, measured from the new, higher base.
So the seller's tax bill shows a value that may have been held below market for years. The buyer's bill starts over from market value.
How Wide the Gap Runs in Eanes ISD
TCAD's 2026 homestead table, updated in late July, shows the size of the gap. In Eanes ISD, the median homestead market value rose from $1,482,210 in 2025 to $1,557,539 in 2026, about 5.1 percent. The median taxable value rose from $1,234,560 to $1,292,871.
That leaves the median taxable value about $265,000 below the median market value for the 2026 tax year. Two things make up that gap: exemptions and the cap. According to the Comptroller's exemptions page, the mandatory school district homestead exemption is $140,000. A buyer who qualifies gets exemptions again. A buyer does not get the seller's years of cap protection back.
Market value grew faster than taxable value in Eanes ISD this year, and that is what the cap is for. The longer someone has owned a home, the more of that slower growth has built up in their appraisal, and the more of it disappears when the cap expires after a sale.
Three Rate Cuts, Three Bigger Bills
This fall, all three taxing bodies most Westlake buyers deal with lowered their rates.
Taxing body | 2025-26 rate per $100 | 2026-27 rate per $100 | Average homestead bill, year over year |
|---|---|---|---|
City of West Lake Hills | $0.176783 | $0.174896 | $3,830 to $4,355 |
City of Rollingwood | $0.202039 | $0.196327 | $5,065 to $5,187 |
Eanes ISD | $0.8322 | $0.8254 | Not reported |
Community Impact reported that Rollingwood adopted its no-new-revenue rate, and that some homeowners may still pay more because the average taxable homestead value rose from $2,507,067 to $2,642,165. West Lake Hills also approved a no-new-revenue rate. In Community Impact's roundup of area city budgets, the city's average taxable homestead rose from $2,165,770 to $2,490,000, and the average city bill went up $525.
A no-new-revenue rate is meant to bring in about the same revenue from the same properties as the year before. When values rise, the rate goes down to match. The cut follows values, so it can't protect an owner whose value rises faster than the average.
A buyer is that owner. The appraised value on a long-held homestead can rise 10 percent a year at most, while a newly purchased home can be appraised at full market value the first January after closing. The city's average bill rose $525 in West Lake Hills, and that figure already includes people with years of capped values. A buyer's first full-year bill comes from a different calculation.
Why Eanes ISD's Low Rate Does Not Lower Your Bill
The Eanes ISD rate makes up most of a Westlake tax bill, and the district calls it one of the lowest in the region. For 2026-27, trustees set 70.54 cents per $100 for maintenance and operations and 12 cents for debt service.
The rate is low because the property values behind it are high. Texas school finance also sends much of the revenue elsewhere. The district's budget page says $73.8 million in taxpayer funds would go to state recapture in 2025-26, about 64 percent of local property tax revenue. The district's June 30, 2026 financial report shows $75,557,615 actually spent on recapture against a $76,119,944 budget.
For a buyer, the point is simple. Your Eanes ISD bill follows your home's taxable value, so the 82.54-cent rate applies to whatever appraised value is left after the cap resets and your exemptions come off.
The Debt Service Line Could Change Next Spring
The 12-cent debt service portion is the part of the Eanes rate that could move next. Community Impact reported in August that the district's Bond Advisory Committee was drafting recommendations for a potential May 2027 bond, and that the board's last day to call an election for May 1 is February 12, 2027. Superintendent Kirk Koennecke told the outlet the district has facilities "that are aging, and have been aging for some time."
In September, district board highlights reported that the committee was holding its second meeting and had covered school finance and the 2023 bond projects. No election has been called. Anyone closing this winter will likely know whether a bond is on the May ballot before their first full-year bill arrives.
What This Means When You Make an Offer
Buyers in the wider market have more room to negotiate than a year ago. Per KLBJ's report on September 2026 data, Travis County homes closed at an average of 92.5 percent of asking price, with 5.8 months of inventory. The countywide median sale price rose 2.6 percent to $497,400 while sales fell 9.6 percent. Those are county figures, not Westlake figures, but they describe the market a Westlake offer is made in.
That negotiating room is more useful once you know your real carrying cost. Estimate the tax line from the price you plan to offer and the current rates, not from the seller's last bill. Then compare that estimate with the listing figure, and make sure your lender's escrow estimate is based on your number too. This is general information, not tax, legal or financial advice. Confirm how these rules apply to your purchase with a tax professional or TCAD.
Questions Westlake Buyers Ask About the Reset
Does the seller's 10 percent cap transfer to me? No. The Comptroller says the limit expires on January 1 of the tax year after the owner stops qualifying for the homestead exemption. Your own cap starts the January 1 after you qualify.
Can I claim the homestead exemption in the year I buy? Usually it starts the next January 1, because TCAD's general rule requires ownership and occupancy on that date. The Comptroller adds that someone who buys after January 1 may qualify for that tax year if the prior owner did not receive the exemption that year.
Does a remodel count against the cap? Under Section 23.23, the market value of new improvements is added on top of the 10 percent limit. Ordinary repairs and maintenance are excluded.
Do West Lake Hills and Rollingwood work differently? The cap rule is statewide. The city rates and average bills are different, as the table above shows, and both cities raised their average bills while lowering their rates.
If you're weighing a Westlake home and want the tax line based on your offer price instead of the seller's history, call Chet for a free home consultation. CBSrealty will go through the appraisal history and the 2026-27 rates with you before you set your number.
