As a new homeowner, I’ve learned a lot about how my property value affects my tax bill, which  is determined by the property value multiplied by the tax rate. Depending on where you live, you will pay taxes to a variety of entities, including the city of Austin, your county, school district and other service districts.

Your county’s appraisal district determines your market value, or the value for which your home would sell. The state limits how much your value can increase from the previous year to 10 percent. That is your assessed value. The value that affects your tax bill is the taxable value, or the assessed value minus any exemptions, such as the homestead exemption.

Any resident may file for a homestead exemption on a property as long as it is his or her primary residence and he or she resided in the home as of Jan. 1 of that year. The exemption removes part of the taxable value of your home and lowers your taxes. Homeowners have until April 30 to file a homestead exemption form. Visit www.comptroller.texas.gov for more information.

Read more about the effect of rising property values HERE.