Property Tax 101
A quick overview of property taxes and the protest process in Texas.
Texas Property Tax Law Basics
Understanding the fundamentals helps you know when and why to protest.
Market Value vs. Taxable Value
These are two different numbers, and understanding the difference is crucial:
Market Value (Appraised Value)
What the appraisal district thinks your property would sell for on the open market. This can go up or down each year based on their assessment.
Taxable Value (Assessed Value)
The value used to calculate your actual tax bill. For homesteads, this is capped at 10% annual increases, so it's often lower than market value.
Key insight: You pay taxes on the taxable value, not the market value. If your taxable value is already below your market value due to the 10% cap, lowering the market value may not reduce your taxes this year—but it can help in future years.
The 10% Homestead Cap
Under Texas Tax Code Section 23.23, if you have a homestead exemption, your taxable value cannot increase by more than 10% per year (plus the value of any improvements).
If your taxable value was $300,000 last year, it can only go up to $330,000 this year (10% increase), even if the appraisal district says your home is now worth $400,000.
This cap was designed to protect homeowners from skyrocketing property taxes when property values surge.
Why Protest Your Property Taxes?
- Appraisal districts often overvalue properties—they don't see the foundation crack in your garage or the 20-year-old roof.
- Mass appraisals use formulas that miss unique property conditions and circumstances.
- Lowering your appraised value now can compound into significant savings over years (see below).
- It's your right as a property owner, and it costs nothing to file.
Grounds for Protest
Texas law allows you to protest on multiple grounds. You can use both simultaneously for a stronger case.
Market Value Protest
Argue that your property's appraised value exceeds its actual market value—what it would realistically sell for.
Evidence to use:
- Repair estimates (foundation, roof, plumbing, HVAC)
- Photos of damage or deferred maintenance
- Recent appraisal from a licensed appraiser
- Recent sale prices of comparable properties
HTD helps with this: Document condition issues and upload repair estimates to build your protest packet.
Unequal Appraisal (Equity)
Argue that your property is appraised higher than comparable properties in your area—an issue of fairness.
Evidence to use:
- Comparable property appraisals from CAD records
- Same neighborhood, similar size/age/features
- Show neighbors' assessed values are lower
- Price per square foot comparisons
Coming soon: We're building tools to help you find and compare equity comps automatically.
Can You Use Both?
Yes! Many successful protests use both grounds together. When you file your protest, you can check multiple boxes. For example:
The Appraisal Review Board (ARB) will consider both arguments and may grant a reduction based on either or both.
Homestead Exemption
The homestead exemption is one of the most valuable tax benefits for Texas homeowners. If you haven't filed for it, you're leaving money on the table.
What You Get
$100,000
Reduction for school district taxes (as of 2023)
10% Cap
Maximum annual increase on taxable value
Cities and counties may offer additional optional exemptions (typically $5,000-$20,000).
How to Apply for Homestead Exemption
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1
Get the application form
Download Form 50-114 from your county appraisal district's website or the Texas Comptroller's site.
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2
Gather documentation
You'll need a copy of your driver's license or state ID showing the property address, and your vehicle registration.
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3
Submit by April 30
File between January 1 and April 30 for it to apply to the current tax year. You can file late up to 2 years, but earlier is better.
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4
One-time filing
You only need to file once. It stays in effect until you move or no longer qualify.
Don't have a homestead exemption yet? File immediately. You may be able to get retroactive benefits for up to 2 years, and you'll start accruing the 10% cap protection right away.
Tax Freezes for Seniors & Disabled
Texas offers additional protections for homeowners 65 and older, or those with disabilities.
Age 65 or Older
- Additional $10,000 exemption for school taxes
- School tax ceiling (freeze) - Your school taxes are locked at the amount from the year you turned 65 or qualified
- Ceiling transfers to new home (adjusted proportionally)
- Surviving spouse may qualify to continue benefits
Disabled Homeowner
- Additional $10,000 exemption for school taxes
- School tax ceiling (freeze) - Same benefit as 65+
- Must be unable to engage in substantial gainful activity due to physical or mental disability
- Requires proof of disability (SSA letter, VA rating, etc.)
Disabled Veterans
Veterans with a service-connected disability receive additional exemptions based on their disability rating:
10-29% disability
$5,000 exemption
30-49% disability
$7,500 exemption
50-69% disability
$10,000 exemption
70%+ disability
$12,000 exemption
100% disability or unemployability: Veterans rated 100% disabled (or receiving 100% due to individual unemployability) are exempt from ALL property taxes on their homestead.
The Power of Compounding Savings
Here's the key insight most homeowners miss: if you can reduce your appraised value below your current taxable value, you don't just save this year—you compound savings every year after.
Example: The 10% Cap Catch-Up
Let's say your property values look like this:
| Year | Market Value | Taxable Value | Gap |
|---|---|---|---|
| 2024 | $450,000 | $350,000 | $100,000 |
Because of the 10% cap, your taxable value will increase $35,000/year (10% of $350k) until it catches up to market value. At this rate, it takes about 3 years to close that $100k gap.
What if you protest and win?
If you can reduce your market value to $340,000 (below your taxable value), here's what happens:
- • Your taxable value drops to $340,000 (must match market value)
- • Next year's 10% cap is calculated from $340,000, not $350,000
- • You've permanently lowered your baseline
5-Year Savings Comparison
Assuming 2.5% tax rate and 10% annual market increases:
| Year | Without Protest | With Protest | Annual Savings |
|---|---|---|---|
| Year 1 | $8,750 | $8,500 | $250 |
| Year 2 | $9,625 | $9,350 | $275 |
| Year 3 | $10,588 | $10,285 | $303 |
| Year 4 | $11,646 | $11,314 | $332 |
| Year 5 | $12,811 | $12,445 | $366 |
| Total | $53,420 | $51,894 | $1,526 |
A $10,000 reduction in year one grows to over $1,500 in savings over 5 years—and keeps growing. Over a typical 10-15 year homeownership period, this compounds significantly.
Frequently Asked Questions
Common questions about Texas property tax protests.
When is the deadline to file a protest?
The deadline is May 15 or 30 days after you receive your Notice of Appraised Value, whichever is later. Most counties mail notices in April, so you typically have until mid-May to file.
Don't wait until the deadline—file as soon as you receive your notice to get the earliest hearing date.
Does filing a protest cost money?
No. Filing a property tax protest is free. It's your legal right as a property owner in Texas. You can represent yourself at the hearing without hiring an attorney or tax consultant.
Can I protest online?
Yes, in most Texas counties. Many appraisal districts now offer online filing and virtual hearings. You can typically file your protest through your county's appraisal district website, and many counties let you submit evidence and attend hearings via video conference or phone.
Check your county appraisal district's website for their specific online options. Our County Statistics page shows which counties offer online protest filing.
What happens at an ARB hearing?
The Appraisal Review Board (ARB) hearing is informal. You'll present your evidence—photos, repair estimates, comparable sales—and explain why your property is overvalued. The appraisal district representative will present their side. The ARB panel (usually 3 members) will ask questions and make a decision.
Most hearings last 15-30 minutes. Many counties now offer online/phone hearings as well.
Can my taxes go UP if I protest?
No. Texas law prohibits the ARB from raising your value as a result of your protest. The worst that can happen is they keep the value the same. You have nothing to lose by protesting.
Should I protest every year?
Yes! Property values are reassessed annually, and conditions change. Even if you won last year, this year's assessment may be too high again. Make it a habit to review your notice each April and protest if warranted.
Remember: it costs nothing to file, and you can't be penalized. The only risk is spending a bit of time.
What if my taxable value is already lower than market value?
Great question! If your taxable value is below market value (due to the 10% cap), lowering the market value may not reduce your taxes this year. However, it still helps by:
- Slowing future increases (market value is the ceiling)
- If you reduce market value below taxable value, both drop immediately
- Protecting against the eventual catch-up when taxable reaches market
See the Compounding Savings section for a detailed example.
Do I have to appear in person before a board?
Not necessarily. Many protests are resolved before ever reaching the ARB hearing through an informal settlement with the appraisal district. In fact, most successful protests are settled this way.
If your case does go to the ARB, most Texas counties now offer alternatives to in-person appearances:
- Phone hearings - Present your case over the phone
- Video conference - Attend via Zoom or similar platforms
- Written affidavit - Submit your evidence and argument in writing without attending
Check with your county appraisal district for available options. Many homeowners successfully protest without ever appearing in person.
What evidence is most effective?
The most persuasive evidence includes:
- Repair estimates from licensed contractors for foundation, roof, HVAC, plumbing issues
- Photos documenting damage, wear, or deferred maintenance
- Comparable sales showing similar homes sold for less
- Equity comparisons showing neighbors' lower assessments
- Recent appraisal from a licensed appraiser (if you have one)
Ready to Protest Your Property Taxes?
Build your protest packet in minutes. Document condition issues, upload repair estimates, and generate a professional packet for your hearing.