How to Appeal Your Property Taxes in Texas

Texas has no state income tax, which means local governments rely heavily on property taxes to fund schools, roads, emergency services, and other public infrastructure. As a result, Texas consistently ranks among the states with the highest effective property tax rates in the country.

The good news: Texas law gives every property owner the right to protest their appraised value. A successful appeal can lower your tax bill by hundreds or even thousands of dollars per year. Whether you own a single-family home in Houston or a commercial office building in Fort Bend County, understanding the appeal process is one of the most effective ways to manage your property tax burden.

This guide walks you through how the system works, what grounds you can use to protest, and how to navigate each stage of the process.

How the Texas Property Tax System Works

Each county in Texas has a central appraisal district (CAD) responsible for determining the market value of every property within its jurisdiction. The appraisal district does not set your tax rate — that is done by the taxing entities (school districts, cities, counties, and special districts) that levy taxes against your property.

Every year, typically by April, the appraisal district mails a Notice of Appraised Value to property owners. This notice shows the district's estimate of your property's market value as of January 1st of that tax year. Your tax bill is then calculated by applying the combined tax rates of all applicable taxing entities to your appraised (or assessed) value.

Key Terms

• Market Value: The price the property would sell for on the open market under normal conditions.
• Assessed Value: The value used to calculate your taxes, which may be lower than market value if you have a homestead cap or other limitations.
• Homestead Cap: For homestead properties, Texas law limits annual increases in assessed value to no more than 10% (or 20% for non-homestead residential properties starting in certain jurisdictions).
• Exemptions: Deductions from your assessed value, such as the general homestead exemption, over-65 exemption, or disability exemption.

Grounds for a Property Tax Appeal

Under the Texas Property Tax Code, you can protest your property's appraised value on several grounds. Understanding which arguments apply to your situation is critical to building a strong case.

1. Market Value Is Too High

The most common protest argument. If you can show that your property's appraised value exceeds what it would actually sell for, you have grounds for a reduction. Evidence includes recent comparable sales, an independent appraisal, or documentation of property defects that reduce value (foundation issues, flood damage, deferred maintenance, etc.).

2. Unequal Appraisal

Even if your property's market value is technically accurate, you may still have a case if comparable properties in your area are appraised at a lower value relative to their actual market worth. This “equity” argument asks: is my property being taxed fairly compared to my neighbors?

3. Incorrect Property Data

Appraisal districts maintain records on every property, including square footage, lot size, year built, number of bedrooms and bathrooms, and property condition. Errors in this data can inflate your appraised value. Always verify your property details on the CAD's website.

4. Exemption Denied or Not Applied

If you were denied an exemption you believe you qualify for — such as a homestead, over-65, disability, or agricultural exemption — you can protest the denial as part of the appeals process.

The Protest Process: Step by Step

Texas has a structured, multi-stage protest process. Here's how each stage works:

Step 1: File Your Protest

You must file a Notice of Protest (Form 41.44) with your county's appraisal district. The deadline is typically May 15th, or 30 days after the Notice of Appraised Value is mailed — whichever is later. Most districts now accept online filings through their website.

Step 2: Informal Hearing

Before your formal hearing, most appraisal districts offer an informal meeting with a staff appraiser. This is often where the majority of cases are resolved. You present your evidence — comparable sales, photos, repair estimates, income data — and the appraiser may agree to a reduced value. If you reach an agreement, the process ends here.

Step 3: Appraisal Review Board (ARB) Hearing

If the informal hearing doesn't produce a satisfactory result, your case moves to a formal hearing before the Appraisal Review Board. The ARB is an independent panel of citizens appointed to hear protests. You present your evidence, the appraisal district presents theirs, and the board issues a binding determination.

Step 4: Further Appeals

If you disagree with the ARB's decision, you have additional options:

• Binding Arbitration: Available for properties with an appraised value of $5 million or less. You file a deposit with the Texas Comptroller, and an independent arbitrator reviews the case. The deposit amount varies by property type and value:

• District Court: You can file a lawsuit in state district court to challenge the ARB's decision. This is more common for high-value commercial properties.
• State Office of Administrative Hearings (SOAH): Available for properties valued over $1 million, this involves a hearing before an administrative law judge.

Residential vs. Commercial Appeals

While the protest process is the same for all property types, the strategies and evidence used differ significantly between residential and commercial properties.

Residential Properties

Residential protests typically rely on comparable sales data — recent sales of similar homes in your neighborhood. Other evidence includes property condition issues (foundation problems, flood history, needed repairs), unequal appraisal data showing neighbors assessed lower, and independent appraisals.

Commercial Properties

Commercial property appeals are more complex and typically use multiple valuation methodologies:

• Income Approach: Analyzes the property's actual income (rent rolls, vacancy rates, operating expenses) to determine value based on the property's economic performance.
• Cost Approach: Calculates replacement cost minus depreciation, accounting for functional obsolescence and real-world conditions.
• Equity / Comparable Sales: Compares the property's assessment to similar commercial properties to ensure fair and equal taxation.

For commercial properties, having a consultant who understands these valuation methods and can present them effectively at each stage of the protest is critical to achieving meaningful reductions.

Common Mistakes to Avoid

Property owners often undermine their own appeals by making avoidable errors. Here are the most common:

• 1.

  Missing the filing deadline

  Once the deadline passes, you cannot protest for that tax year. File as early as possible — don't wait until the last day.

• 2.

  Relying on emotion instead of evidence

  “My taxes are too high” is not a valid argument. You need data: comparable sales, income statements, photos, repair estimates, or equity analysis.

• 3.

  Accepting the first offer at the informal hearing

  The initial offer is often not the district's best. Prepared property owners with strong evidence frequently achieve better outcomes by negotiating further or proceeding to the ARB.

• 4.

  Not verifying property records

  Incorrect square footage, lot size, or property features in the CAD records can silently inflate your value. Check your property card before protesting.

• 5.

  Not protesting at all

  Many property owners assume the appraisal district's value is final. It's not. The protest process exists specifically because values are estimates, and you have every right to challenge them.

When to Hire a Professional

While any property owner can file and argue their own protest, many choose to work with a property tax consultant — especially for higher-value properties or complex situations. A qualified consultant can:

• Analyze comparable sales and equity data from the appraisal district's own records
• Prepare professional-grade evidence packages for informal and ARB hearings
• Represent you at every stage of the process, from the informal hearing through binding arbitration or litigation
• Identify valuation errors and exemptions you may have missed
• Handle commercial property income analysis, cost approach calculations, and equity arguments

Most reputable property tax firms work on a contingency basis, meaning you only pay if they achieve a reduction. This eliminates the financial risk of hiring professional help.

Key Deadlines for Texas Property Tax Protests

Timing is everything in the protest process. Here are the dates that matter:

Take Control of Your Property Taxes

Property tax appeals in Texas are not just for the wealthy or for large commercial portfolios. Every property owner — from first-time homebuyers to institutional investors — has the right to challenge their appraised value. The process is structured, the deadlines are clear, and the potential savings are real.

The key is preparation: know your property's data, gather the right evidence, and understand which stage of the process gives you the best leverage. Whether you handle it yourself or work with a professional, don't leave money on the table.