With the recent changes to Texas property tax laws, Houston homeowners can expect to see approximately $521 in additional savings for a $288,000 home—and comparable properties across the state will also see that potential level of savings. The recent changes increase the homestead exemption amount from $40,000 to $100,000, raising the direct savings from around $400 to $1,000.
Depending on your budget and total property bill, that extra $600 in your pocket may be significant. But it’s only a fraction of what combining your property tax strategies (including property tax protests and filing for your exemptions in the first place) can potentially do to reduce your tax obligations.
Tax protests allow property owners across the state to argue against the appraisal process that determines their home’s appraised value and, through that, its taxable value and tax bill. By understanding the different tax savings strategies available and when to take action on these strategies, you can more effectively lower your property taxes and make the expense more predictable throughout the years.
What to Do Before Tax Protest Season
Property tax protest season is in the springtime. While homeowners across Texas receive their property tax bills in the fall and payments are due on January 31st, that’s not the time when property owners can take action to reduce their taxes. At that point, the amount has already been decided.
So whether you think your property taxes are becoming too high or you want to make a habit of doing everything you can to lower your tax obligations, set time aside in the spring to handle these tasks:
Have Your Property Tax Exemptions in Place
Property tax exemptions are measures that property owners can apply for based on their status, and the exemption will remove a portion of their home’s value from property tax calculations, effectively lowering the final balance. The good news is that you can file for exemptions at any point during the year. The most common Texas property tax exemptions are:
- Homestead exemption: If you own a Texas home as your primary residence, you can apply for this form of tax protection. It exempts $100,000 of your home’s property value from school district tax calculations. Since most counties have a school tax rate of approximately 1%, this results in a $1,000 annual savings.
- Disability or over-65 exemptions: Qualifying homeowners who have a disability or who are over 65 can apply for this exemption and have an additional $10,000 removed from school district taxes. There are more savings opportunities for seniors, but property owners can only hold one exemption or the other at the same time.
- Disabled veteran exemption: Depending on your disability rating from the VA, you can have up to $10,000 of your property’s value exempted from calculations or (for 100% ratings for veterans or surviving spouses) the entire property exempted.
- Agricultural exemption: This is frequently called an exemption, but it isn’t one. Instead, it changes the method of calculating the property’s appraisal value. Homesteads that have qualifying land used for agricultural purposes can have their property appraised based on production value rather than market value to realize significant savings on what might otherwise become a cost-prohibitive parcel of land.
Related: Texas Prop Tax Laws Changing: Do You Still Need to Protest Your Taxes?
For the first three exemptions, you don’t have to reapply again and again. Instead, they stay locked in place until your status changes (i.e., you move, repurpose the property, or lose a relevant status). You can apply at virtually any time to have these exemptions added to your home’s profile. But once it’s spring, a good practice is to check your property’s details on your county’s central appraisal district website to ensure the exemptions are on file.
Review Your Notice and Save the Deadline
In the spring, you may also receive a Notice of Appraised Value. This document must be sent out by the county appraiser’s office near April or May if your home’s appraised value has increased substantially since the previous year. The notice will include information about your new appraisal value, the tax rates that apply to the property in the current year, and instructions regarding how to protest the valuation if you disagree with it.
Homeowners will need to file their notice of protest within 30 days of receiving their appraised value, or typically by May 15th.
An important note if you’re unfamiliar with the Texas property tax protest process: You are not protesting the property taxes or the property tax bill itself. Instead, you’re protesting your property’s appraisal value, which local tax assessors use to calculate your taxes. If you think the number is too high or outpaces the true growth in the market, you can present a countervalue and supporting evidence.
Consider Signing Up for a Property Tax Protest Service
Below, we discuss the process of how you protest your taxes. However, many busy homeowners may not be able to complete the process alone. Gathering evidence to support a counter-valuation, communicating with county appraisal officials, and representing yourself in a formal hearing can be overwhelming. You may also be unable to take time off of work to spend a day at your county office.
Instead of missing out on the savings opportunity, you can hire a property tax protest service to represent you. Depending on the organization you choose, the service will appraise your property, submit your protest notice and supporting documentation, represent you at meetings, and argue on your behalf in front of an appraisal review board to maximize your potential savings.
This approach carries several advantages. However, it’s important to sign up before May 15th to ensure you can meet the deadlines and your chosen representatives have time to put together an argument for you.
How to Lower Your Taxes With a Tax Protest
Tax protests are a specific process outlined by the Texas Comptroller’s Office and the Texas Tax Code. Through this process, you can potentially lower your home’s appraised value and see measurable savings as a result.
For example, if your home was appraised at $300,000 in the previous year and the value skyrocketed to $375,000 in the current year, your property tax bill may grow from $6,000 (at a 2% tax rate) to $7,500. But if you successfully argue that your property’s value should only be $350,000, it lowers to $7,000—a $500 savings before property tax exemptions and potential reductions in local tax rates even enter the equation.
The Property Tax Protest Process
These steps outline the basic process homeowners follow to protest and potentially lower their property taxes.
1. Fill Out the Protest Notice Before the Deadline
First, fill out the property protest notice before May 15th (or within 30 days of receiving your notice of appraised value). Your protest notice should include your counter-valuation: the fair market value you think your property reflects. In the document, you’ll also explain why you think your valuation is correct and the county’s number is wrong.
2. Respond to Communications
After you mail in your notice, you’ll receive confirmation from the county appraiser’s office. They might:
- Immediately agree to your valuation
- Offer a compromise amount
- Schedule a hearing or meeting to further the dispute
Related: Lowering Property Taxes For Texas Homeowners: Home Tax Shield 2023 Results
If you are offered a compromise amount, you are free to accept it and end the protest or continue to pursue the issue in front of the appraisal review board during a hearing.
3. Show Up to Scheduled Hearings or Meetings
Throughout the process, you may have scheduled telephone conversations or informal meetings with representatives of the county appraiser. Through these conversations, the office will seek a compromise to settle the matter without a full hearing. You must appear at scheduled meetings, but you are not required to accept
4. Present Your Case In Front of the Appraisal Review Board
On the day of your scheduled hearing, you’ll arrive at the appraisal district office where you and the county appraiser will present your arguments to a review board of appointed county residents. They will listen to both sides, review the evidence, and make a final decision regarding your home’s appraisal value. While you can appeal their decision, the amount will be entered into the appraisal district roll.
A More Effective Alternative: Hiring a Property Tax Protest Service to Represent You
This process can be time-consuming and anxiety-ridden for anyone not used to presenting technical arguments in front of an audience. By hiring a service to represent you, you can protest your property taxes without undergoing this process yourself. Instead, representatives will complete every step, from filing the notice to speaking in front of the board.
Lower Your Property Taxes and Pay a Fair Amount
Using the right strategies to lower your property taxes, especially if you stack multiple approaches, can help you save hundreds of dollars every year. At Home Tax Shield, we help Texas homeowners proactively get ahead of the process. Sign up today to be ready for property tax protest season in 2024.