Property Taxes: How to Protest

There aren’t many people who love paying taxes, so it’s no surprise that one of the most common questions we get come April or May of every year is about how to protest property taxes. Well, never fear, we are here to help you assess whether or not it will be worth your time and effort to protest your property taxes.

Every year tax bills come out in October, they are due in January, and the new tax appraisal estimates are sent in April or May. That is when you as a homeowner, need to decide if the appraisal seems accurate or if it would be worth protesting your property taxes.

The good news is that the basic process of appealing may not be as complicated as you imagined. However, you definitely need to be organized and have your ducks in a row if you decide to protest.

Property taxes and the tax rate of the city you live in are two different things. Today, we are covering property taxes, which are decided upon by the Dallas County Appraisal District. Every year, the county assesses and determines the value of your home and that is the value that they tax you off of. However, often what the county assesses as the value of your home is not what you would actually be able to sell your home for on the open market.

This is because a tax appraisal and the appraisal you have done when you go to purchase a home are two different types of appraisals. Both are appraisals but serve different purposes. The county has limitations to their appraisals. They can see what you paid for the home and any permits you pulled for renovations however, they can’t physically see inside your home. So, the county is appraising the value of your home based on the limited information they have. This is helpful in the appeal process, which we will jump into here shortly.

The tax appraisal district is going to assess the value of your home annually. In Texas, there are certain limits to how much they can increase the value by. The biggest increases you will most likely see will occur when you first purchase a home and they see what you paid for it and when you’ve done extensive renovations that you’ve pulled permits for.

Because they assess the value of your home every year, you also have the opportunity and right to protest your property taxes every year. In April or May, you’ll receive the tax estimate that is taken from the tax appraisal of your home. That letter will have instructions on how to protest if you choose. Often it’s by signing and returning the letter. If you decide to protest, they will send you another letter detailing the process and date you have to appeal by.

Pro tip: don’t wait until that deadline to get your ducks in a row! There are a few things you can be doing to prepare for your hearing or appeal process before the deadline approaches.

If you think your home is worth less than the tax appraised value, you have to present a case for that. So, you start by compiling evidence. This is the very opposite of what you do when you go to put your house on the market. The evidence you are looking for includes updates that need to be done, things that came up on the inspection report that haven’t been fixed, and other reasons why your house is not up to the value of other homes in the neighborhood.

Getting prepared.

Step one. Call your real estate agent. You real estate agent can pull some comps within the neighborhood for you to hopefully help show that your home is not of the appraised value. They can help you compile some evidence for your case and help give you a better estimate on the value of your home. Make sure to give them plenty of time as this can be a time-consuming process for them.

Step two. Get estimates. As you compile a list of repairs or updates needed on your home, call around to get estimates on the cost for these repairs. These estimates are typically free, but it may be the most time-consuming step for you in the process of building your case.

Step three. Take photos. You more than likely will be presenting your case before a panel. They don’t know what your home looks like, so take clear pictures so they can see the evidence for themselves and understand the repair estimates you’ve received.

Since the pandemic, some tax districts have changed their processes on how they do appeals. Check your local tax district and see what their specific process is. If your tax district still requires an in-person hearing, listen to the full podcast linked above for detailed steps for appealing in person.

All-in-all, come prepared. It can be well worth your time and effort to protest your property taxes, but being prepared is key.  

If you have your own tips and tricks for this process, please share them below! We are always interested to learn from your first-hand experiences. When you get your property taxes come April or May, give us a call if you need help assessing whether or not it would be worth your time to protest. We are always happy to help.

Until next time,

Brianna and Keelie

Disclaimer: We cannot guarantee that if you follow all that we suggest above the value assessed of your home will in fact decrease.