Introduction
If you’re new to Texas, welcome to property tax season. This is the time when you’ll receive a letter from your County Tax Assessor detailing your home’s assessment for the upcoming tax bill. Protesting property taxes is a common concern, and this guide provides essential information and tips for effectively protesting your taxes.
Understanding Your Appraisal Notice
On your appraisal notice, you’ll see two key values:
- Market Value: The value placed on your property by the County Appraisal District for the tax year.
- Assessed Value: The amount you’re actually taxed on.
If you have a homestead exemption, your market and assessed values may differ.
Homestead Exemptions
Homestead exemptions in Texas have two parts:
- Exemption Portion: Reduces the assessed value before applying the tax rate. School districts must give a $100,000 exemption. Additional exemptions may be available for those over 65, disabled, or 100% disabled veterans.
- Homestead Exemption Cap: Limits assessed value increases to 10% over the prior year’s value if you’ve lived in the property for a full calendar year.
File for your homestead exemption by April 30 of the tax year, with late applications accepted up to two years after the delinquency date.
How Counties Assess Property Values
Counties group similar properties together to determine values. They use sales data and perform ratio studies to compare appraised values to sale prices. If discrepancies arise, you can protest your assessed value.
Protesting Your Property Taxes
- Determine if Market Value Should Be Less: Assess if the market value on your notice should be less than your assessed value.
- Compile Evidence: Gather sales data, photos, and estimates for necessary repairs. Use resources like homes.com to find comparable sales.
- File Your Protest: Many counties allow informal protests online. Submit evidence and follow guidelines from your notice.
Common Questions
Why do neighbors have different assessed values?
Texas is a non-disclosure state, so sales prices are not public. Appraisers use available data and homeowner disclosures.
How quickly should I protest my assessed value?
Protest by May 15 or 30 days after your notice is mailed.
Can I protest based on my purchase price?
Yes, but results vary. Purchase price is one data point among others used for valuation.
Does protesting affect my home’s sale value?
No. Assessed values for taxes do not impact appraisal for sale.
Why doesn’t my form show the tax amount?
Tax rates are set later in the year. Your notice establishes property value for taxation.
Why did my taxes increase significantly?
New construction homes initially taxed on unimproved land values see increases once improvements are assessed. Plan for potential escrow adjustments.
Conclusion
For more detailed guidance, visit texashometaxes.com. Contact your local appraisal office for specific questions and assistance. This guide consolidates information from various sources and personal experiences but is not legal advice. Always consult directly with your appraisal district for tailored advice.
