How to Protest Property Taxes in Texas
With residential and commercial appraisals surging across DFW, protesting your tax valuation is practically mandatory. Here is the tactical playbook.
In Texas, property taxes are assessed based on the market value of the property as of January 1st of that tax year. Because Texas does not have a state income tax, local jurisdictions rely heavily on property taxes, leading to some of the highest rates in the nation.
You have the absolute right to protest the value assigned by the Central Appraisal District (CAD), such as DCAD (Dallas) or CCAD (Collin). The deadline to file a protest is typically May 15th, or 30 days after receiving your notice of appraised value.
The Two Grounds for Protest
When you file, you should almost always check both boxes:
- Market Value: Claiming the appraisal district has valued your property higher than what it would sell for on the open market.
- Unequal Appraisal: Claiming your property is appraised at a higher percentage of market value than comparable properties in your neighborhood (even if the market value itself is technically accurate).
Gathering Evidence
You cannot simply say "my taxes are too high." You need data.
Evidence that works:
- Closing statement if you recently purchased the property for less than the appraised value.
- Photos of deferred maintenance, structural damage, or outdated interiors (the CAD assumes your house is in "average" or "good" condition).
- Estimates from contractors for major repairs needed (roof, foundation).
- Comps (comparable sales) from your neighborhood provided by a real estate agent.
The Process
- File the Notice of Protest: Do this online before the deadline.
- Informal Hearing: You will meet (often virtually or via a web portal settlement offer) with an appraiser. They will present their evidence, you present yours. Most protests are settled here with a minor reduction.
- Appraisal Review Board (ARB) Hearing: If you cannot agree, you go before a panel of citizens. This is a formal hearing. You present your case, the appraiser presents theirs, and the panel votes on the value.
Should you hire a firm?
Firms like O'Connor & Associates or local property tax consultants operate on a contingency fee (typically taking 30-50% of the tax savings they generate; if they don't save you money, you pay nothing).
For Commercial Property: Yes, absolutely. Commercial valuation is complex (income approach vs cost approach) and professional representation is standard.
For Residential Property: If you have a straightforward, well-maintained home, hiring a firm requires zero effort on your part and often yields a reduction. However, if you have specific damage or issues to highlight, doing it yourself with photos can sometimes yield a larger reduction than a firm running automated comps.