Property owners in Texas have the right to protest property taxes if they disagree with the assessed value. A property tax protest is when you dispute the market value of a property as assigned by a local tax authority. Since property taxes are based on a property's current market value, the tax bill will be higher if your property has been overvalued.
Anywhere between 30% and 60% of taxable property is overvalued. Property assessors use mass appraisal models to make educated guesses regarding property value, and as a result, mistakes are common. And since property appraisals directly impact how much you pay in property taxes, appealing an unfair or inaccurate valuation can save you money. Some common reasons Texas property owners file a protest include:
A property's value is higher than the property's actual market value.
The property is appraised at a higher value than comparable properties in the same area.
There are necessary repairs or outdated infrastructure, not factored into the valuation.
Appraisal district records list inaccurate information regarding lot size or square footage.
An exemption you are entitled to receive was denied.
You didn't receive the required notice of property appraisal.
Although the term property tax appeal is often used interchangeably to describe a property tax protest, protest is the correct legal term in Texas. This state-specific guide provides a unified look at how counties across the state approach the protest process. Find unique assessed and market value insights into Texas' property tax trends, the three-year impact that protesting can have on tax liability, and survey results from Texas homeowners who went through the protesting process.
Tax Protest Timeline Example
Understanding and following the property tax protest timeline is essential for a successful outcome. A property owner who misses the deadline to appeal will have to wait until the following tax year for the next opportunity to file. Here's what to expect:
April 15:
The local appraisal district sends out a notice of appraised value in the spring. Examine it carefully for errors or inaccuracies in property information. In addition to the property description, the appraisal notice will list any exemptions for which you applied and are qualified, as well as your property's overall taxable value for the year.
Texas tax liability is calculated using the market value of a property minus any homestead exemptions. The resulting assessed value is multiplied by the tax rate in your area to get the estimated amount you owe in property taxes for the year.. Tax rates can vary widely from county to county because local tax authorities set them according to their projected budgetary needs for the following year.
May 15:
If you disagree with the appraisal value of your property, begin collecting evidence to support your claim. Then file a formal notice of protest with the county appraisal district office in your area. Use the Notice of Protest Form (Form 50-132).
The deadline to file a protest in Texas is May 15 or 30 days after receiving the appraisal notice in the mail, whichever is later.
Early June:
Wait to receive notice of an informal meeting date for your claim. The appraisal office has 20 days to file an answer after receiving your notice of protest. You may be allowed to sit down with an appraiser from the appraisal district office to make an 'informal' protest and to present your evidence. The majority of protest cases are resolved in this manner.
Post‑hearing:
If the appraisal office upholds its original assessment or doesn't come down enough, you have the option to proceed to a formal hearing in front of the Appraisal Review Board (ARB), which is an independent panel that hears from both parties. You and a representative from the district appraisal office will present evidence, and the ARB will return a decision.
You can pursue further appeal if the ARB doesn't rule in your favor via the state district court by entering into binding arbitration or through the State Office of Administrative Hearings (SOAH), depending on the type of property you own and its value.
During this time, you may receive a temporary property tax bill with last year's tax liability amount or a reduced rate, pending a hearing. It's important to pay this bill on time to avoid accruing penalties and interest for late property tax payment.
Comparing The Four Major Counties in Texas
Although it can result in significant savings, only 22% of Americans protest their property taxes, and this inaction is costing them. Rising median home values and tax liability in four of Texas' major counties are a major impact of the increases in housing costs are having on tax bills in the Lone Star State, as well as across the country.
A successful property tax protest offers savings beyond just the year in question. Failing to protest your Texas property taxes for even one year can cost you for even the next three years as home sales continue to increase. Lowering your valuation this year effectively reduces the initial level for future increases. So your efforts now will continue to pay dividends in the future.
Compare the effective property tax rate, median home value, and median tax bill for Dallas, Houston, Austin, and San Antonio to see what some Texas residents are paying annually in property taxes.
Median Effective Property Tax Rate | Median Home Value | Median Tax Bill | |
Dallas | 1.74% | $309,600 | $5,040 |
Houston | 1.41% | $89,420 | $1,317 |
Austin | 1.51% | $237,942 | $2,796 |
San Antonio | 2.03% | $265,000 | $5,362 |
Step-by-Step Guide to Texas Property Tax Protest
Filing a tax protest can be a complex task. Use this step-by-step guide on how to protest property taxes in Texas:
Review your Notice of Appraised Value
Upon receipt of your appraisal notice, look the document over carefully. Take note of errors such as miscalculated square footage and property age, or inaccuracies in describing the condition of the property.
Confirm that you have received any exemptions on homestead properties you applied for and are qualified for. Calculate your taxes, and compare the estimated property tax listed on the appraisal notice.
Gather Supporting Evidence
It's not enough to simply say that your tax bill is too high. You will need to be able to prove that this assertion is true. Gather evidence that supports your claim, including:
comparable sales data for real estate in your area
photos of property depreciation
receipts and repair estimates for the property
reports from a contractor or inspector showing discrepancies
independent appraisals reflecting a different assessment value
record corrections illustrating inaccurate measurements and features
3. File Your Protest (Form 50-132)
Use the Notice of Protest form (Form 50-132) located on the district appraisal website to file a formal protest. Include the evidence you've gathered. The deadline to file is May 15 or 30 days after the appraisal notice was mailed to you, whichever comes later. If you miss the deadline, you will have to wait until the following tax year to file.
4. Attend Your Hearing
After you file the notice of protest, you will receive a date for an informal hearing with a member of the appraisal staff. Depending on your particular county, you may even be given the opportunity to discuss the evidence you submitted.
Most property tax protest cases end with an informal hearing. When the evidence clearly supports a lower appraisal value, the appraised property value is usually adjusted, along with your tax bill.
5. Understand Outcomes and Next Steps
If you aren't satisfied with the informal hearing outcome, you have the option to appeal to the Appraisal Review Board (ARB). The ARB hears arguments from both the property owner and an appraisal district representative. The independent panel examines the evidence presented and returns a decision.
When further appeals are required, you may take the case before the state district court or enter into binding arbitration. If you choose arbitration, be aware that you are agreeing to accept the arbitrator's decision as final and legally enforceable.
For properties valued over $1 million, you can also appeal the ARB's decision to the State Office of Administrative Hearings (SOAH). However, you must file a Notice of Appeal with SOAH within 30 days of receiving the ARB's order.
DIY vs. Hiring Professional Tax Protest Companies
Filing a protest on your own is possible, and there aren't any out-of-pocket costs for going it alone. However, if you find the tax protest process to be too complex, you don't have the time, or you aren't confident in your abilities, consider hiring a professional. Property tax protest companies like Ownwell simplify and guide taxpayers as they navigate the protest process.
Here are a few things to keep in mind while looking for a professional.
Look for a company experienced in Texas real estate and tax law with a proven track record of success.
Choose a representative familiar with your specific property type and geographic location.
Discuss a clear fee structure up front so you can weigh the costs and benefits.
Ownwell's proprietary software and evidence packets offer significantly more detail than DIY alternatives, enabling you to build a strong protest case and save more. See how we compare to our Texas competitors. Our customers save, on average, $1,102 on property taxes through the protest process — money they can use to reach their goals faster.
Ready to Lower Your Texas Property Tax Bill? Take Action Today.
Get the ball rolling with us at Ownwell and see how much you can save. We'll represent you in your Texas property appraisal protest, and you only pay if we reduce your tax bill. Our team of experts can also help with retroactive Texas homestead exemptions to save you even more.
Frequently Asked Questions
Do I need an attorney to protest my property taxes?
An attorney is not required to protest property taxes in Texas. However, depending on your knowledge and time, it can be helpful to have a tax professional on your side who is familiar with the Texas property tax code.
What happens after I file a property tax protest?
Wait to receive notice of the date and time of your hearing. Attend the informal hearing with a representative of your local appraisal district, and present your supporting evidence. A successful protest can result in savings on annual property taxes. If the initial informal protest is unsuccessful, you may continue with a formal appeal to the ARB.
Can protesting my taxes lower my bill permanently?
By lowering the appraised property value, you also reduce your tax bill and future bills in turn. However, you may need to continue protesting unfair and inaccurate valuations in the future.
Can I protest online?
Yes. Many appraisal districts in Texas offer portals to submit a Notice of Protest online.
How long does it take?
You have 30 days from the date your appraisal notice is mailed to you to file a protest. After that, there isn't a specific duration for property tax protests in Texas.
Is a protest the same as an appeal?
Yes. Although the terms are used interchangeably, protest is the correct legal term in Texas.
