Texan property owners are receiving incredibly high property tax bills, with a median property tax bill of $2,275 across the state. As the season changes with October right around the corner, 2023 property tax bills will be sent out by local tax assessors. But the property tax process doesn’t start in October. Instead, the appraisal district calculates your property’s value as of the start of the year, and you receive notice of the property’s appraised value in the spring.
It’s too late to protest or appeal the amount when you open your property tax bill in the fall. Instead, you need to know how to appeal property taxes in Texas in the spring while you can still dispute the appraisal district’s valuation of your home.
This guide will discuss how to appeal property taxes by disputing the appraisal value. When you keep this number fair and accurate, you can see a reduced bill in the fall and build on those savings over the years. Learn more about why appealing your property taxes can do, the step-by-step process, and what you can do to make the process easier.
Why Should You Know How to Appeal Property Taxes in Texas?
The right of property owners to appeal their property taxes is established in the state constitution. You have the right to fair taxation and to protest the appraisal district’s decisions if you believe the appraisal value is unfair or inaccurate. Learning how to appeal property taxes in Texas—and completing the steps every year—offers you a lot of benefits:
- Don’t rely on just your homestead exemption: Eligible primary residences can have a homestead exemption, which caps the taxable assessment value of your home. If your home is appraised at more than 10% above last year’s rate, the county tax assessors can only consider a maximum 10% increase. But homestead exemptions aren’t always permanent. Don’t let your appraised value skyrocket behind the scenes; your taxes will be based on that high appraisal value if the exemption disappears, ensuring a 10% increase per year.
- Keep the appraisal value low on non-homesteaded properties: If you have a second home, a rental property, or commercial property, it won’t be eligible for a homestead exemption. Appealing the appraisal value directly affects your tax bill’s total. By law, filing an appeal will never increase your property’s value; it can only ever lower it.
- Protesting benefits the whole neighborhood (and likewise, your neighbors’ protests help you): When your property’s appraisal value goes down due to your appeal, your neighbors can use your lowered number as evidence for why their home’s appraisal value should go down. In turn, you can use their numbers. Year after year, this cooperative approach reduces bills for the whole neighborhood.
The Complete Process: How to Appeal Property Texas in Texas
The Texas Comptroller outlines the basic steps of appealing property taxes, and individual counties or municipal governments manage and oversee the appeals. If you want to appeal your property taxes, stay vigilant in the spring and follow these steps:
Step 1: File a Form 50-132 Notice of Protest
Whether you receive a Notice of Appraised Value in the mail or check your new appraisal value online, you might see the figure and think it’s wildly inaccurate. Even if it’s off by just a few thousand dollars, appealing the amount matters.
Related: How to Choose a Property Tax Protest Company
File an appeal with your local county and appraisal district. Typically, this form and instructions are included with your appraised value notice but can also be readily found online. It’s essential to file the appeal by the due date! In Texas, all counties are required to accept requests until May 15th, or 30 days after the notice is sent. Take a closer look at the necessary steps to initiate the Texas property tax protest process.
Complete and Submit the Form to Your Local Appraisal District
Download a copy of Form 50-132, Notice of Protest, or request a paper copy from your local government. Add your personal and property details, explain your reason for protest, and specify how you want the hearing process to proceed.
Do Research to Support Your Countervaluation
You’ll need to support your case for a lower appraised home value. Here are some different ways to go about this.
- Common errors on appraisals can translate to real money that could have been left in your bank account. Take time to review all the information closely. This includes your home’s assessed value, total square footage, year built, and the number of bedrooms and bathrooms. A simple error here could mean a big win in lowering the amount of property taxes you owe.
- Compare your home’s appraised value to your neighbors. Every Texan has a right to fair and equal taxation. Find comparable houses in your neighborhood with similar lot sizes and square footage and compare their appraisals. Realtors or real estate professionals with licensed access to property databases can generate reports on this data, filter them to include only comparable homes or adjust the values based on key property factors, and present summaries to guide appeal efforts or act as supporting evidence.
- Perhaps your home’s condition isn’t reflected in the county’s appraisal. Is your home older than most of the homes in your neighborhood? Is it in need of repair or some serious upkeep? Get estimates! Those hard numbers from contractors for what it will take to get your home in shape are excellent ammunition to come to your protest with. But it can’t just be paint or landscaping – the work must be significant and structural, like if your roof or foundation requires repair.
Step 2: Keep an Eye Out for Counteroffers and Hearing Information
Your appraisal district will reach out via email, text, or letter to confirm a hearing date. You may also receive a counteroffer. If the appraisal district thinks your protest is reasonable, they may lower your appraisal value to your requested amount or a “middle ground” value. You can choose whether to accept this amount or continue to the hearing to pursue a lower value.
Step 3: Schedule a Meeting With the Appraisal District
Before the hearing, you or the appraiser may also request an informal meeting. This is an opportunity to discuss the particulars of your property and the evidence on both sides. You can reach a compromise at this stage or continue to the hearing.
Step 4: Show Up at Your Hearing With Plenty of Documentation
Show up at your hearing with time to spare, and be ready to present your case in front of the appraiser (who will present their arguments), the appraisal review board (that will make a final decision), and a potential audience of other property owners waiting to make their case. To support your case, bring plenty of copies of your evidence—including images, quotes, adjusted comps, and additional information.
Related: Homeownership in Texas: Mortgage Payments, Taxes, and Home Values
At the end of the hearing, the appraisal review board will determine your new appraisal value. That concludes the hearing, but if you are still unsatisfied with the amount, there is a separate appeal process.
How to Appeal Property Taxes in Texas Using a Representative
If navigating that process seems overwhelming or tedious, there are two ways you can still appeal your property taxes without directly managing each step:
Step 1: Appoint a Representative
By filing Form 50-162, Appointment of Agent for Property Tax Matters, you can designate someone else as your representative. They can file the protest form on your behalf and present arguments. This is a valuable option if you or a family member don’t speak English, won’t be able to take time off to attend the hearing, or have health issues that can interfere with your ability to participate fully.
Step 2: Hire a Professional Service to Represent You and Handle the Entire Process
Professional property tax services can manage the entire process for you. Depending on the company you choose, they can:
- File the protest form
- Calculate what your property’s appraisal value should be based on local data and records
- Manage communications with the appraisal district
- Represent you in meetings and hearings
- Manage the process every year for maximum cumulative savings
Choosing a company with experience and tax expertise can get you more potential savings. By working with a professional service from the very start of the process, you can see more benefit and have peace of mind. Companies will not be able to come in during the middle of the process or after the tax appeal deadline.
Take the Guesswork Out of Knowing How to Appeal Property Taxes in Texas
Appealing your property taxes is essential, but navigating the process can be incredibly challenging. At Home Tax Shield, we help homeowners across the state fight for lower appraisal values and lower taxes. We know how to appeal property taxes, so you don’t have to fill up your free time with proceedings and paperwork. Sign up today to get help protesting your property tax bills in 2024.