How to Protest Property Taxes in Texas: A Step-by-Step Guide
Texas homeowners often experience rising property tax bills due to increasing home values and adjustments made by county appraisal districts (CADs). However, many do not realize they have the legal right to protest their property tax assessments and potentially reduce their tax burden.
Successfully protesting your Texas property tax bill can lead to substantial savings, but it requires understanding the process, gathering strong evidence, and filing before the deadline. This guide explains the Texas property tax protest process, including how to file a protest, present a strong case, and explore appeal options if necessary.
Understanding Property Tax Assessments in Texas
Texas property taxes are based on assessed market value, determined annually by the county appraisal district (CAD). This assessed value is influenced by recent home sales, neighborhood market conditions, and individual property characteristics such as square footage, lot size, and renovations.
Your final property tax bill is determined by:
- Market Value Assessment – The CAD estimates your home’s value based on comparable sales and property data.
- Local Tax Rates – Set by cities, counties, and school districts, determining how much tax is owed per dollar of assessed value.
- Exemptions – Homeowners may qualify for property tax reductions, such as the homestead exemption or over-65 exemption.
Since Texas does not have a state income tax, local governments rely heavily on property taxes. This means homeowners often face higher tax bills as home values rise, even if no improvements have been made. If your home’s assessed value does not accurately reflect its true market value, you have the right to file a Texas property tax protest.
Step 1: Review Your Property Appraisal Notice
Each year, homeowners receive a Notice of Appraised Value from their county appraisal district, usually in April or early May. This notice details the assessed value of your home and your estimated property tax bill.
Important Deadlines
The deadline to file a Texas property tax protest is:
- May 15 or
- 30 days after you receive your Notice of Appraised Value, whichever is later.
Missing this deadline means you will have to wait until the following tax year to file a protest. Reviewing your appraisal notice early allows time to prepare a strong case.
Step 2: Identify Errors and Gather Evidence
If your home’s assessed value is incorrect, you must present strong evidence to support your protest.
Common Errors That Can Lead to Overvaluation
- Incorrect Property Details – Check for errors in square footage, lot size, and listed features such as extra bedrooms, garages, or pools that do not exist.
- Overestimated Market Value – If comparable sales used by the CAD do not accurately reflect your home’s size, condition, or location, your home may be overvalued.
- Failure to Account for Needed Repairs – If your home has foundation issues, a damaged roof, plumbing problems, or outdated electrical systems, these should be factored into the assessed value.
- Misclassified Property Type – Ensure your home is correctly categorized as residential and not commercial property.
Gathering Supporting Evidence
To strengthen your case, collect the following:
- Comparable Sales Data (“Comps”) – Research recent sales of similar homes that sold for less than your assessed value.
- Property Condition Documentation – Photos and repair estimates from contractors to prove that your home requires costly fixes.
- Independent Appraisal or Realtor Market Analysis – A third-party appraisal or a comparative market analysis (CMA) from a real estate agent can provide objective evidence of your home’s true market value.
Step 3: Filing a Property Tax Protest in Texas
Once you have gathered evidence, you can formally file your Texas property tax protest. Most CADs allow homeowners to submit protests:
- Online – Many Texas counties provide online protest portals for easy submission and document uploads.
- By Mail – Homeowners can submit a Notice of Protest (Form 50-132) via mail to their local CAD office.
- In Person – Some CADs allow homeowners to file directly at their office.
After filing, many CADs offer an informal review, where a staff appraiser evaluates your case. If a settlement is not reached, you can escalate to a formal Appraisal Review Board (ARB) hearing.
Step 4: Appealing a Denied Property Tax Protest
If your ARB hearing does not result in a satisfactory reduction, you still have legal options.
- Binding Arbitration – A neutral third-party arbitrator reviews your case and makes a legally binding decision.
- District Court Lawsuit – Homeowners can challenge the ARB’s decision in state district court, though this may require hiring a property tax attorney.
- State Office of Administrative Hearings (SOAH) – Available for properties valued over $1 million, where an administrative judge reviews the case.
Take Action to Lower Your Property Taxes in Texas
Filing a Texas property tax protest is one of the most effective ways to reduce your tax bill. By reviewing your appraisal notice, gathering strong evidence, and filing before the May 15 deadline, you can successfully challenge an inflated assessment.
If you are unsure about handling the protest yourself, consider consulting a property tax professional. Whether filing on your own or with expert help, taking action now can result in long-term financial savings.
To begin your protest, visit your county appraisal district’s website today.
Frequently Asked Questions (FAQs) About Protesting Property Taxes in Texas
1. How long does the Texas property tax protest process take?
The timeline varies by county, but most protests are resolved within 30 to 90 days. Informal reviews may be settled quickly, while formal Appraisal Review Board (ARB) hearings can take longer. If you escalate to arbitration or a court appeal, the process may extend several months.
2. What is the difference between an informal property tax protest and an ARB hearing?
An informal protest allows you to negotiate directly with a county appraisal district (CAD) appraiser to try and reduce your home’s assessed value without a formal hearing. An ARB hearing is a more structured process where you present your case to an independent review board that makes a final determination.
3. How much of a reduction should I aim for when protesting my Texas property taxes?
There is no set percentage, but most successful protests result in reductions of 5% to 20%. The amount depends on your evidence, property condition, and comparable sales data. If your home has major structural issues or is significantly overvalued, larger reductions are possible.
4. Does protesting my property taxes affect my home’s resale value?
No, a successful protest does not impact your home’s actual market value—it only affects the taxable value assigned by the appraisal district. When you sell your home, buyers will consider market conditions, not your previous property tax assessment.
5. Can I protest property taxes for rental or investment properties in Texas?
Yes, property tax protests are not limited to primary residences. If you own rental properties, commercial properties, or vacant land, you can file a protest if you believe the assessed value is inaccurate. Investment property owners should provide rental income comparisons, expense reports, and local market analysis to strengthen their case.
6. Are there any penalties for protesting my Texas property taxes?
No, there are no penalties or risks associated with filing a property tax protest. Even if your protest is denied, your tax bill will remain the same as originally assessed, and it will not increase due to the protest.
7. Can I use a home appraisal from a refinance or purchase as evidence in my protest?
Yes, an independent home appraisal from a recent home purchase or mortgage refinance can be used as evidence, especially if the appraisal value is lower than the county’s assessed value. Be sure the appraisal is recent (within the last 12 months) and includes detailed property condition assessments.
8. If I win my Texas property tax protest, will my taxes go up next year?
Winning a protest does not guarantee future reductions. Property values are reassessed annually, so if home values rise or your exemption status changes, your taxes could increase in subsequent years. However, homeowners with a homestead exemption benefit from a 10% annual increase cap on assessed value, preventing large jumps.
9. How does new construction or home improvements affect my property taxes?
If you recently built a home, added a pool, extra rooms, or made major renovations, your property taxes may increase due to a higher assessed value. However, if the appraisal district overestimates the impact of these improvements, you may still have grounds for a protest. Keeping records of construction costs and project details can help ensure accurate valuation.
10. Can I protest my property taxes if my neighbors have lower valuations for similar homes?
Yes, if similar homes in your neighborhood have lower assessed values than yours, this can be strong evidence for a reduction. You will need to provide comparable property data showing that homes with the same size, age, and features are being taxed at a lower rate. You can find this information through your county’s public appraisal records or real estate websites.
