May 1, 2026 - As we enter the 2026 Property Tax Season, several important changes and developments have occurred over the past year. These include increased and newly added exemptions, updates to state law, and revisions within the Property Tax Code.
Shelby County continues to experience steady growth. Over the past year, we have seen an increase in both population and new construction. Specifically, 19 site-built homes, 80 manufactured homes, and 5 commercial buildings have been added, along with numerous barns, poultry houses, and other improvements. This growth reflects new businesses, new residents, and continued investment across the county.
Alongside this growth, real estate sales have remained strong, resulting in higher property values countywide. Since 2020, property sales across Texas have continued to reach record levels. According to the Texas Real Estate Research Center at Texas A&M, in Shelby County and the Pineywoods Association of Realtors, 2025 sales increased by 11.1% year over year. While the market is beginning to stabilize—with homes averaging 121 days on the market (28 days longer than in 2024)—sale prices remain elevated.
Every two years, the Texas Comptroller’s Property Tax Division conducts a Property Value Study (PVS), which serves as a “report card” for appraisal districts. This study ensures properties are appraised at 100% of market value, as required by Section 23.01 of the Texas Property Tax Code.
In the most recent 2025 study, all six Shelby County school districts were evaluated. For the first time in five years, each district fell within the acceptable range of 95% to 105% of market value in each State Category of properties and was deemed “valid.” This designation is critical, as it allows school districts to receive the full amount of state funding to which they are entitled.
To maintain this status, continued compliance is necessary. Two school districts—Joaquin and Excelsior—must achieve another valid study result in the next cycle to reset their grace period. It is important to understand that when property values fall outside of the state’s acceptable range, it can directly impact school funding.
One ongoing challenge is access to accurate sales data. Shelby CAD sends optional sales questionnaires to buyers and sellers of recorded transactions; however, less than 2% are returned. Additionally, since 2015, we have not had access to Multiple Listing Service (MLS) data from the local Board of Realtors. Meanwhile, the State Comptroller continues to have access to sales data used in its studies. This creates a gap that can impact local valuation accuracy.
As a result of current market conditions and state requirements, many property owners will see increases in their 2026 appraised values. This applies to residential, commercial, and many rural properties. While acreage values have begun to stabilize—and small adjustments have been made for certain tract sizes—properties with utilities and site improvements are now being valued accordingly. Raw land sales data does not reflect these added improvements, and adjustments have been necessary to align with market evidence.
We also want to remind property owners that all appraisal districts in Texas use a mass appraisal approach to value. While this method ensures consistency, it may not account for unique property conditions. If your property has functional or physical issues that may affect its value, we strongly encourage you to contact our office or schedule an appointment with an appraiser. Please bring photos, repair estimates, or any supporting documentation. If you purchased your property within the last 12–18 months and believe your appraised value exceeds your purchase price, bring your closing statement or fee appraisal for review.
There have also been important updates regarding exemptions. Senate Bill 4 increased the Residential Homestead (school tax) exemption from $100,000 to $140,000. For property owners who are Over 65 or receiving Social Security Disability, the additional exemption has increased from $10,000 to $60,000—resulting in a total exemption of $200,000.
This will be the final year of the Non-Homestead Cap (also known as the “Circuit Breaker”), which limits increases in taxable value to no more than 20% annually for qualifying properties up to $5,160,000. Homesteaded properties will continue to receive the 10% cap on taxable value increases. Please note that certain factors—such as new improvements, added square footage, or changes in ownership—can affect these caps.
A longstanding truth remains: property owners often prefer higher values when seeking financing and lower values for taxation purposes. However, the State of Texas requires appraisal districts to maintain values that reflect the current market. At this time, the state continues to indicate that local values must remain closely aligned with market data.
If you have any questions or concerns, we encourage you to contact the Shelby County Appraisal District. Our goal is to serve you with fairness, transparency, and accuracy. We are open Monday thru Thursday, 8:00a.m. to 4:30p.m and Friday, 8:00a.m. to 1:00p.m. We are open during the lunch hour for your convenience. You may e-mail at clerk@shelbycad.com or call at (936) 598-6171.
