If your Appraisal Review Board hearing didn't go your way, the fight isn't over. Texas law gives you two further paths — here's how to figure out which one fits your property.
Getting an unfavorable ARB decision from your county appraisal district's board doesn't mean your value is locked in. Under Texas Tax Code Chapter 41A and Chapter 42, you have two further appeal paths: binding arbitration or a lawsuit in district court. Which one is available — and which one makes more sense — comes down to two questions about your specific property.
You generally have two options: file for binding arbitration, or file a lawsuit in district court. Arbitration is faster and less expensive but is only available to homestead properties of any value, or non-homestead properties valued at $5.36 million or less in 2026. A lawsuit is available to any property regardless of value, but takes longer (9-15 months) and involves a full discovery process.
Important: Both options have strict deadlines. You generally must request arbitration or file a lawsuit within 60 days of receiving the ARB's written order. Missing this window can forfeit your right to appeal further, so don't wait to figure out which path applies to you.
Walk through these steps to see which appeal option applies to your property.
Homestead properties can use binding arbitration regardless of value — there's no cap. If this is your homestead, skip to Step 3.
Non-homestead properties are only eligible for arbitration up to this cap. Above $5.36 million, arbitration isn't available at all, and a lawsuit is your only remaining option.
Eligible for arbitration — continue to Step 3 to decide between the two options.
Not eligible for arbitration. Your only path forward is a lawsuit.
Read: Property Tax Lawsuit in TexasChoose based on speed vs. legal tools:
Arbitration typically resolves in under 6 months, with a defined deposit cost and no discovery process.
Read: Property Tax Arbitration in TexasA lawsuit lets you compel documents and testimony from the appraisal district, but takes 9-15 months.
Read: Property Tax Lawsuit in Texas| Factor | Arbitration | Lawsuit |
|---|---|---|
| Eligibility | Homestead: no cap. Non-homestead: $5.36M cap (2026) | Any property, any value |
| Timeline | ~45 days negotiation, then up to 120 days to a hearing | 9–15 months |
| Discovery | None | Full discovery available |
| Deadline to file | Generally 60 days after the ARB order | Generally 60 days after the ARB order |
If arbitration looks like your path, a few Texas arbitration rules are worth understanding before you file: the arbitrator is selected from a Comptroller-approved list, you and the county appraisal district each present evidence without formal depositions, and the arbitrator's decision is binding on both sides — there's no further appeal after a binding arbitration ruling in most cases.
For the full deposit schedule, fee breakdown, and step-by-step process, see our property tax arbitration in Texas guide.
Commercial and high-value properties are the ones most likely to run into the $5.36 million non-homestead cap. If you're unsure whether your commercial property qualifies for arbitration, review our commercial property tax protest guide or contact us directly — we can confirm eligibility before you file either option.
PropertyTaxes.Law can review your ARB decision, confirm your eligibility, and handle either arbitration or litigation on your behalf.
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