The Most Effective Ways To Lower Your Property Taxes In Texas

Key Takeaways: 

• Understand the Valuation Process: Learn how Texas property assessments are determined and what types of errors to look for that may lead to overpayment.
• Uncover Savings Through Exemptions: Find out which homestead exemptions you may qualify for and how they can significantly reduce your tax bill.
• Master the Protest Process: Gain a step-by-step guide on filing a property tax protest and how professionals can help you secure a fair outcome.

Icon has successfully saved millions in property taxes for Texas homeowners and business owners by combining precision analytics with aggressive protest strategies. With decades of experience and industry-leading tools, we understand how to challenge inflated property valuations and help clients reclaim what they’re overpaying—year after year.

Texas property taxes are among the highest in the country, and overvaluations are far more common than most realize. Whether you’re dealing with an outdated appraisal, unexplained increases, or simply trying to understand where your tax dollars are going, knowing how the system works is the first step toward real savings. With the right approach, you can reduce your tax liability without guesswork, stress, or endless paperwork.

In this piece, we’ll be discussing the most effective ways to lower your property taxes in Texas—from reviewing your assessment to filing a protest and beyond.

Breakdown Your Property Tax Assessment

Before challenging your property tax bill, it’s essential to understand how your home’s value is assessed and where costly errors can appear. Each year, local appraisal districts determine a value for your property using mass appraisal methods. While these systems are efficient, they aren’t personalized and often rely on general data that may not reflect your home’s actual condition or features.

Small mistakes—like incorrect square footage, features you no longer have, or outdated information—can significantly inflate your home’s assessed value. For example, if the records say your home is 2,300 square feet, but it’s actually 2,100, that 200-square-foot error could be costing you hundreds in unnecessary taxes.

The first step is to review the property records provided by your appraisal district. Look closely for discrepancies in size, number of rooms, amenities, or improvements. A careful review of these records can reveal clear grounds for a protest and set the stage for a stronger case when it’s time to challenge the valuation.

Know Your Home’s Market Value

When it comes to contesting your property taxes, knowing the actual market value of your home gives you a serious advantage. Here’s how to approach it:

Start With Local Sales Comparisons (Comps)

Look at recently sold homes in your neighborhood that closely resemble yours in square footage, layout, age, and location. These comps help establish a market baseline for your property. If similar homes are selling for significantly less than your assessed value, that may be a red flag.

Compare Key Features And Upgrades

A similar home might sell for a higher price due to renovations or added features. If a comparable property has a new kitchen or an extra bathroom, but your home doesn’t, those differences should be deducted from the comp’s value during your analysis.

Assign Dollar Values To Differences

Adjusting comps means putting a price tag on property features. For instance a kitchen remodel might add $15,000 in value, a half-bath could be worth $8,000, and a larger garage might add another $5,000 to $10,000. If your home lacks these features, the comp’s sale price should be reduced accordingly in your protest analysis.

Consult Market Trends Or Local Experts  

You don’t need to be an appraiser to make basic adjustments. Use online real estate platforms, speak with local agents, or reference contractor quotes to estimate values. The more accurate your comparisons, the more persuasive your case.

Document Your Findings

Keep a record of all comparable properties you reference, along with notes on how they differ and what adjustments you made. Visual evidence (photos, listings, maps) can further reinforce your argument if you’re filing a protest.

Apply For Homestead Exemptions In Texas

One of the simplest and most effective ways to lower your property tax bill in Texas is by taking advantage of homestead exemptions. These exemptions reduce the taxable value of your home, which directly lowers your annual property tax liability. Here’s a breakdown of the most common exemptions available:

General Residential Homestead Exemption

If the property is your primary residence, you may qualify for this exemption. It reduces the taxable value of your home, often by a fixed dollar amount or percentage, depending on the taxing entity. This exemption alone can result in meaningful annual savings.

Over-65 Exemption

Homeowners who are 65 years of age or older can qualify for an additional exemption on their residence. This benefit not only lowers your taxable home value but can also freeze school district taxes at their current level, preventing future increases unless significant improvements are made.

Disabled Person Exemption

Individuals who meet the Social Security Administration’s definition of a disability may apply for this exemption. It functions similarly to the Over-65 exemption and can provide substantial relief from annual property taxes. Proof of disability, such as a letter from the SSA, is typically required.

Disabled Veteran Exemption

Veterans with a service-connected disability rating may qualify for a partial or full property tax exemption. A 100% disability rating typically grants a full exemption on the primary residence. Lower ratings offer scaled relief depending on the level of disability. This exemption may also apply to surviving spouses of qualifying veterans.

Surviving Spouse Of A Veteran Or First Responder

The surviving spouse of a member of the armed forces killed in action—or a first responder who died in the line of duty—may be eligible for a full or partial exemption. To qualify, the spouse must remain unmarried and continue to reside at the same home.

How To Apply

Each exemption requires submitting an application through your local appraisal district. Be sure to include any required documentation (e.g., proof of age, disability certification, or military records). Most counties offer online forms or printable applications through their websites.

How To File A Property Tax Protest In Texas

Filing a protest may seem daunting, but breaking it down into clear steps makes it easier to manage. Here’s how to move through the process effectively:

Review Your Appraisal Notice

Every year, appraisal districts send out notices indicating your property’s assessed value. It’s important to read this document carefully, compare it to your own research, and mark the protest deadline, which is usually May 15 or 30 days after the notice is mailed—whichever comes later.

Gather Your Evidence

Successful protests rely heavily on strong evidence. This could include comparable home sales, documented discrepancies in your property’s reported size or features, and photos that illustrate your home’s current condition compared to higher-valued properties.

Complete The Protest Form

Your county’s appraisal district provides a specific form for filing a protest. It typically asks you to choose the basis for your challenge—such as incorrect market value or unequal appraisal—and may allow you to submit online for added convenience.

Submit Your Protest On Time

Missing the filing deadline usually means you lose your opportunity to contest your assessment for that year. Submitting online often provides confirmation and peace of mind, while mailed or in-person submissions require careful tracking to ensure timely receipt.

Prepare For The Hearing

If your protest proceeds to a hearing, being organized is key. Review all of your evidence ahead of time, create a summary of your argument, and print copies of your documents to bring with you—this preparation helps keep your case focused and credible.

Present Your Case Confidently

During the hearing with the Appraisal Review Board, stay calm and focused on the facts. Make your argument based on the evidence you’ve gathered, and avoid emotional appeals; sticking to data and logic greatly increases your chances of success.

Navigate The Appraisal Review Process With Professionals

While it’s entirely possible to handle a property tax protest on your own, partnering with experienced professionals can dramatically improve the outcome. Here’s how they can assist you throughout the process:

They Handle The Research And Paperwork

Property tax consultants take the burden off your plate by gathering comparable property data, reviewing appraisal records, and identifying errors in your property’s valuation. Their familiarity with appraisal district systems and protest procedures ensures everything is properly documented and submitted on time.

They Build Strong, Data-Driven Comparisons

Instead of relying on basic comps, professionals analyze comparable properties in depth, making precise dollar-value adjustments for differences in square footage, renovations, and features. This level of detail can make your case far more persuasive during appraisal review board hearings.

They Represent You At Hearings

One of the biggest advantages of hiring a professional is that they can attend informal and formal hearings on your behalf. They present your case, respond to questions from the board, and defend your position with confidence and clarity—often leading to better outcomes than a DIY approach.

They Know How To Spot Overlooked Opportunities

Experts are trained to identify lesser-known exemptions, appeal errors, and procedural advantages that the average homeowner may miss. Their ability to navigate the complexities of local tax codes could lead to savings you didn’t know were possible.

Final Thoughts

Lowering your property taxes in Texas isn’t just about saving money—it’s about ensuring fairness in how your home is valued and taxed. With the right information, a careful review of your property’s details, and a strategic approach, it’s entirely possible to challenge inflated assessments and reduce your annual tax burden.

Whether you go through the process independently or enlist professional support, the key is preparation. By understanding your local market, identifying potential discrepancies, applying for all eligible exemptions, and submitting a well-documented protest, you’re taking proactive steps to protect your finances. Every dollar saved counts—and with a little effort, those savings can really add up over time.

Frequently Asked Questions About How To Lower Property Taxes In Texas

Can property taxes be negotiated directly with the county?

No, property taxes themselves aren’t negotiable, but you can challenge the assessed value of your property through a formal protest. If successful, a lower assessed value will lead to a reduced tax bill.

Does improving energy efficiency lower property taxes in Texas?

Not typically. While energy-efficient upgrades may reduce utility bills, they don’t usually impact your home’s assessed value or qualify for tax reductions unless part of a special local or state incentive program.

Can property taxes increase even if my home value hasn’t changed?

Yes, your taxes can increase due to rising local tax rates, new bond measures, or changes in district funding needs—even if your home’s assessed value stays the same.

What is the cap on how much my property’s value can increase each year in Texas?

For homesteaded properties, the assessed value can’t increase by more than 10% per year, plus any improvements. This cap helps prevent sudden tax spikes for homeowners who live in appreciating markets.

Do second homes or rental properties qualify for the same exemptions?

No. Most property tax exemptions, like the homestead exemption, only apply to a homeowner’s primary residence. Investment and secondary properties typically don’t qualify for these benefits.

Are commercial properties eligible for property tax protests too?

Yes, both residential and commercial property owners have the right to protest their valuations. The process is similar but may require more detailed financial and valuation evidence.

How do I find my appraisal district’s guidelines and forms?

Visit your county’s appraisal district website. Most districts offer online access to protest forms, deadline calendars, exemption applications, and contact information for support.

Can I appeal an ARB decision if I disagree with the result?

Yes. If you’re not satisfied with the Appraisal Review Board’s ruling, you can appeal through binding arbitration, district court, or to the State Office of Administrative Hearings (SOAH), depending on eligibility.

How long does a property tax protest typically take to resolve?

The process can vary by district, but most protests are resolved within 30 to 90 days. Informal settlements may happen quickly, while formal hearings or appeals can extend the timeline.

Will protesting my property taxes trigger a reassessment that could backfire?

Not necessarily. The protest process is designed to address overvaluation—not raise your tax bill. However, providing insufficient or incorrect evidence could weaken your case, so preparation is key.