A Homeowner’s Guide to Property Taxes in Granbury, TX

Property taxes are a recurring cost of homeownership, but the bill can be confusing because several taxing entities may appear on the same statement. Understanding how property value, exemptions, tax rates, and appeals work can make the annual process easier to follow.

What determines a homeowner’s property tax bill?

Your property tax bill is generally based on the property’s taxable value multiplied by the tax rates adopted by the local taxing entities that serve it.

The basic calculation is:

Taxable value ÷ 100 × tax rate = estimated tax

For example, if a property has a taxable value of $300,000 and a taxing entity adopts a rate of $0.50 per $100 of value, that entity’s portion would be approximately $1,500 before additional exemptions or adjustments.

A homeowner’s full bill may include separate amounts for:

• The local school district
• County government
• The city, if the property is within city limits
• Special districts or other local entities

The exact combination depends on the property’s location. Two homes with similar values can have different tax bills if they are served by different districts or if one is inside the city and the other is not.

Who decides the value of a home?

The county appraisal district determines the appraised value used for property taxation. This value is intended to reflect the property’s market value as of January 1 of the tax year, subject to applicable limitations and exemptions.

The appraisal district—not the city council, school board, or property tax collector—determines the value of the property. Local taxing entities set their own tax rates and adopt budgets based partly on the revenue those rates produce.

A valuation may change because of:

• Recent sales of comparable properties
• Changes in neighborhood market conditions
• New construction or additions
• Significant remodeling
• A change in the property’s condition
• Corrections to the appraisal district’s records

Routine maintenance does not automatically create a new improvement for appraisal purposes. However, a major addition, detached structure, enclosed area, or other improvement that increases market value may affect the appraisal.

In an area with lake-related housing, larger lots, seasonal residences, and a mixture of newer and older homes, properties may not all respond to market changes in the same way. The appraisal should be reviewed against homes with similar characteristics rather than relying only on a broad neighborhood average.

What is a residence homestead exemption?

A residence homestead exemption reduces the taxable value of a qualifying primary residence. It is generally available to an owner who owns the property and uses it as a principal residence.

For the 2026 tax year, Texas school districts must provide a $140,000 general residence homestead exemption. Some local taxing entities may also adopt an additional exemption based on a percentage of the property’s appraised value.

The exemption does not eliminate every part of the tax bill. It reduces the value on which qualifying entities calculate taxes, and the savings can vary depending on the rates and exemptions used by each entity.

A homeowner normally applies through the county appraisal district. The general filing deadline is April 30, although certain late applications may be accepted under Texas law. There is no charge to apply for a standard residence homestead exemption.

Homeowners should also check that the exemption remains active after a move, ownership change, or change in occupancy. A homestead exemption is tied to the property owner’s principal residence and cannot generally be claimed on two homes at the same time.

Does a homestead exemption limit future increases?

Yes, but the limitation is often misunderstood.

A qualifying residence homestead may receive a 10 percent annual cap on increases to its appraised value, with exceptions for new improvements. The limitation generally begins after the homestead exemption has been granted for the applicable period.

The cap limits the increase in appraised value; it does not guarantee that the tax bill will rise by no more than 10 percent. Tax rates can change, new taxing entities may apply, exemptions can change, and additional improvements may be added to the appraisal.

For example, a home’s appraised value may be protected from a full market increase, yet the total bill could still change because a local entity adopted a different tax rate.

Are there additional exemptions for older or disabled homeowners?

Homeowners who are age 65 or older or who meet the qualifying disability requirements may receive an additional school district homestead exemption. For the 2026 tax year, the required school district exemption is $60,000.

Some local taxing entities may offer additional exemptions or tax limitations for eligible homeowners. These benefits are not always automatic, so an eligible person should review the application requirements and confirm that the correct exemption is shown on the tax record.

Certain disabled veterans, surviving spouses, and other qualifying property owners may also be eligible for specialized exemptions. The rules depend on the individual’s circumstances and the type of property involved.

Why can the bill change even when the home’s value does not?

A property tax bill can change for reasons other than an appraisal increase.
Possible causes include:

• A change in the tax rate
• A new bond or special-purpose district charge
• The addition or removal of an exemption
• A correction to ownership or property records
• Completion of new construction
• A change in the home’s taxable status
• Differences between estimated and finalized tax information

Granbury’s city tax rate can apply only to properties within the city limits. A mailing address that uses Granbury does not by itself establish whether a property is inside the city. The tax statement is a practical place to check which entities are charging taxes.
For the 2026–2027 fiscal year, the city adopted a property tax rate of $0.485 per $100 of property valuation. That is only one component of a homeowner’s total bill, not the combined rate for every taxing entity.

What should a homeowner do after receiving an appraisal notice?

Review the notice promptly, especially the property description, assessed value, exemptions, and ownership information.
Compare the appraisal with:

• Recent sales of similar homes
• The condition and age of the property
• Living area, lot size, and construction quality
• Outbuildings, pools, additions, or other improvements
• Any facts that make the property different from nearby comparisons

If the value appears incorrect, a homeowner may file a protest with the appraisal review board. The notice usually explains the deadline and includes instructions for filing. Evidence can include photographs, repair records, closing documents, comparable sales information, or documentation showing that the property record is inaccurate.
A protest is separate from a request for a tax exemption. A homeowner may need to address both issues independently.

When are property taxes due?

Texas property taxes are generally billed in the fall and become delinquent after January 31 of the following year unless an approved payment arrangement or exemption applies. For example, a 2026 tax bill is generally due by January 31, 2027.
Mortgage borrowers may not pay the bill directly. If taxes are included in an escrow account, the mortgage servicer may collect monthly amounts and pay the tax bill on the homeowner’s behalf. Even then, the homeowner should review the annual tax statement because a higher bill can lead to an escrow shortage and increased monthly payments later.

Keeping copies of appraisal notices, exemption approvals, tax statements, and protest results creates a useful record for future years. Property taxes are local and can change annually, so reviewing the bill each year is more reliable than assuming the prior year’s amount will remain the same.