Should I Protest My Property Taxes If My Value Went Down?

Most homeowners who see their assessed value drop assume the county got it right and move on. That assumption costs money.

Your assessed value, what the county believes your home would sell for, may still exceed true market value (what buyers are actually paying for comparable homes right now). A lower number on your notice doesn't automatically mean the county got it right.

This guide covers:

• When appealing still makes sense

• How to evaluate whether your assessment is accurate

• The steps to file if you decide to move forward

Key Takeaways

• A decrease in your assessed value doesn't confirm accuracy. It may still exceed what your home would sell for today.

• In most states, your value cannot increase from your own appeal, so filing has essentially no financial downside.

• In Texas, every successful protest lowers the baseline for the 10% annual homestead cap, compounding savings in future years.

• You may also qualify for homestead, senior, or disability exemptions that reduce your taxable value independently of any appeal.

• Ownwell customers win 88% of the time and save an average of $774 per year.

Can I Appeal Property Taxes If My Value Went Down?

Yes, appealing your property taxes can still make sense even if your assessed value dropped. A decrease doesn't automatically mean your property is fairly valued.

Here's the key distinction:

• Assessed value is the county's estimate of what your home would sell for on the open market. In some states, taxable value is set at a percentage of assessed value, but in most states it's equivalent.

• Market value is what buyers are actually paying for comparable homes right now.

These two numbers should move together, but they often don't, especially after rapid market shifts or when property-specific issues go undetected.

Even after a reduction, your assessed value could still exceed true market value by thousands of dollars.

• Your value may still exceed market value: The county's decrease might not fully reflect how much your local market actually declined.

• Property-specific issues often go overlooked: Assessors typically don't catch deferred maintenance, outdated layouts, or other factors that reduce your home's value.

• Exemptions may apply: You could qualify for homestead, senior, or other exemptions that further reduce your taxable value.

• In most states, there's no risk: Your assessed value typically cannot increase as a result of your own appeal.

Why Assessed Value Often Diverges From Market Value

How Mass Appraisal Works

Counties don't send an appraiser to walk through every home. Instead, they use mass appraisal systems. This method values thousands of properties at once using statistical models, recent sales data, and property characteristics pulled from records.

The result is an estimate of what a typical home like yours might be worth.

But "typical" doesn't account for your specific situation. If your kitchen hasn't been updated since 1985 or your foundation has cracks, the county's model won't know that.

In Texas, mass appraisal also carries last year's assessed value forward when the district has no specific reason to update it. A decrease is often the district's opening adjustment, not a confirmation that your home is fairly valued. Comparable sales, condition issues, and unequal appraisal can all support a deeper reduction.

Market Conditions Change Faster Than Assessments

Assessment dates often lag behind real-time market shifts by several months. If your local market declined quickly due to rising interest rates or shifting buyer demand, the county's valuation may not reflect current conditions.

Even a lower assessment can be outdated if it relies on sales data from six months ago. Markets move fast, and assessments don't always keep up.

Property-Specific Factors Often Get Missed

Mass appraisal can't capture everything. Assessors typically don't see inside your home, so they miss details that affect value:

• Deferred maintenance or needed repairs

• Functional obsolescence, such as small rooms or awkward layouts

• External factors such as traffic noise, power lines, or flood risk

• Incorrect property records showing wrong square footage or extra bathrooms

You May Qualify for Unclaimed Exemptions

Exemptions reduce your taxable value separately from the assessed value itself. Many homeowners don't realize they qualify for homestead, senior, or disability property tax exemptions, or they simply forget to apply after purchasing their home.

In Texas, for example, the general homestead exemption removes $140,000 from your home's assessed value for school district taxes. That reduction exists independently of any appeal.

Equal and Uniform Arguments May Support a Further Reduction

This argument applies specifically in Texas.

In Texas, you can argue that your property is valued higher than similar homes in your area, even if your assessment reflects fair market value. This is called an equal-and-uniform protest.

The principle is straightforward: If comparable properties are assessed at lower per-square-foot values, your assessment may be inequitable. You can use this argument to achieve a reduction even when market value alone doesn't support one.

Risks of Appealing Property Taxes

States Where Your Value Can Increase After an Appeal

In a few states, filing an appeal opens your entire assessment to review. If the assessor discovers errors that undervalued your property, your assessment could actually increase.

Georgia and Washington are two states where this risk exists. Before filing in these states, review comparable sales data carefully to confirm your property is genuinely overassessed.

Pennsylvania carries a different risk. There, taxing districts such as school districts and municipalities can file their own appeals to raise a property's assessment, separate from any appeal you file yourself.

Note: We review market data before filing and may decline to file if the risk of an increase outweighs potential savings.

States Where Your Value Cannot Increase After an Appeal

In most states, your assessed value cannot increase as a result of your own appeal. The table below reflects states where we currently operate. Rules vary in states not listed.

If you live in a state where your value is protected, filing has essentially no downside.

How to Know If Your Assessment Is Still Too High

Compare Your Assessment to Recent Sales

Start by looking at comparable sales in your area. These are homes similar to yours in size, age, condition, and location that sold within the past six to twelve months.

If those homes sold for less than your assessed value, you likely have grounds for an appeal. Most county appraisal district websites list recent sales, or you can find them through real estate sites.

Review Your Property Record for Errors

Your county maintains a property record card with details about your home. Errors in this record can inflate your assessment. Check for:

• Incorrect square footage

• Wrong number of bedrooms or bathrooms

• Inaccurate lot size

• Missing or incorrect condition notes

Even small errors can add thousands of dollars to your assessed value. Correcting them is often the easiest way to reduce it.

Check If Your Neighborhood Declined More Than Your Assessment

Sometimes, entire neighborhoods decline more sharply than the county's models capture. If recent sales in your area dropped significantly but your assessment only decreased slightly, the gap represents potential savings.

A Texas Before-and-After Example

Here's how a $25,000 reduction plays out for a Texas home. At a 1.48% effective rate, trimming your assessed value from $350,000 to $325,000 saves you $370 per year.

That $370 also carries forward as a lower baseline in future years, compounding your savings.

Exemptions That Could Lower Your Tax Bill Further

Homestead Exemptions

A homestead exemption reduces the taxable value of your primary residence. Eligibility requirements vary by state, but most homeowners who live in their property qualify.

Many homeowners don't realize they qualify or forget to apply after purchasing their home. If you haven't filed for a homestead exemption, that's often the first place to look for savings.

Senior and Disability Exemptions

Most states offer additional exemptions for homeowners over 65 or those with qualifying disabilities. Eligibility criteria vary, but these exemptions can significantly reduce your tax burden.

Some states also freeze your assessed value once you qualify, protecting you from future increases.

Other Common Exemption Types

Beyond homestead and age-related exemptions, you may qualify for:

• Veteran exemptions

• Agricultural exemptions

• Renewable energy exemptions

• Widow or widower exemptions

How to Appeal Your Property Taxes

1. Gather Evidence of Overassessment

Strong evidence underpins a successful appeal. Collect:

• Comparable sales data showing lower prices for similar homes

• Photos of property condition issues

• Repair estimates or inspection reports

• Corrected property details if your records contain errors

We've helped homeowners save more than $400 million since 2020, and after working through appeals in every market we serve, we've found the difference usually comes down to three to five well-chosen comparable sales that clearly show the home is overvalued.

2. File Before the Deadline

Deadlines vary by state and county and often fall shortly after assessment notices are mailed. In Texas, the protest deadline is typically May 15 or 30 days after the appraisal district mails your notice, whichever is later.

Missing the deadline forfeits your right to appeal for that tax year. Missing it means you must wait until the next assessment cycle and lose a full year of potential savings.

3. Attend Your Hearing or Send a Qualified Representative

You can attend the hearing yourself or authorize a representative to appear on your behalf. Many property owners find that working with an experienced representative improves their chances of success. Representatives know which arguments work in specific counties.

If you pay property taxes through your mortgage escrow, a lower assessment flows through to your monthly payment, so the savings show up in your escrow statement, not just a future tax notice.

If you'd rather not handle it alone, our property tax appeal service files the paperwork and represents your case from start to finish.

How Ownwell Can Help

We handle everything from building the evidence file to attending the hearing on your behalf, so you don't have to navigate local rules or spend hours pulling comparable sales.

• Customers win 88% of the time

• Average savings of $774 per year

• In Texas, our analysis of 17 counties in 2025 found win rates ranging from 57% to 89% across the state

• We work on contingency pricing, so you pay only if we reduce your taxes

See how much you could save on property taxes.