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Myths About Property Taxes That Cost Owners Money

6 Myths About Property Taxes That Cost You Money

Every year, thousands of property owners overpay on their property taxes simply because they believe common myths about the system. These misunderstandings can cost thousands of dollars over time. 

If you are wondering “is it worth protesting property taxes in Texas?”, the answer is almost always yes. However, you need to separate fact from fiction. Here are the most expensive property tax myths we see—and the reality behind them.

Myth #1: “If my value only went up a little, it’s not worth protesting.”

Even small increases can result in significant tax hikes, especially on high-value properties.

A $50,000 increase on a commercial property could mean thousands in additional taxes. Over several years, that adds up quickly. Furthermore, if you don’t fight property tax increases now, next year’s value will start from a higher baseline. Even modest increases should be reviewed and challenged.

Reality: Even modest increases should be reviewed and, when appropriate, protested.

Myth #2: “The Appraisal District already got it right.”

Appraisal districts handle hundreds of thousands of properties each year. They rely on mass appraisal models, not individual inspections.

Reality: Mistakes are common, including:

  • Incorrect square footage
  • Wrong condition ratings
  • Overstated rents or occupancy
  • Ignoring deferred maintenance

Finding just one of these errors is often how to protest property taxes and win a reduction.

Myth #3: “You can only protest if the value went up.”

Many owners assume that if their value stayed the same, they have no grounds to protest.

Reality: You have valid reasons to protest property taxes if:

  • Your property is overvalued compared to similar properties
  • The appraisal district used incorrect data
  • Market conditions changed
  • Your property has physical or functional issues

Myth #4: “I’ll only save a few hundred dollars.”

Owners often underestimate the impact of a successful protest.

Reality: A reduction of:

  • $25,000 could save hundreds per year
  • $100,000 could save thousands annually
  • Over a 5-year period, those savings multiply significantly

Myth #5: “It’s too complicated to protest.”

Many owners avoid protesting because they worry about the property tax protest cost or think the process is difficult.

Reality: Most protests:

  • Can be handled by a professional
  • Require little time from the owner
  • Are contingency-based (no savings, no fee)

Are property tax protest companies worth it? Generally, yes. Because many firms work on a contingency basis, you only pay a percentage of the tax savings. If they don’t lower your taxes, you typically don’t pay a fee. This makes the process risk-free for the owner.

Myth #6: “New construction or new purchases can’t be protested.”

Some owners think that because a property is new or recently purchased, the value is automatically correct.

Reality: New construction is often:

  • Assessed at projected stabilized values
  • Overestimated on rent or occupancy
  • Based on incomplete cost data

The Real Cost of Believing These Myths

Property taxes are one of the largest operating expenses for real estate owners. Overpaying even a small amount each year can result in tens of thousands of dollars in lost cash flow over time.

A simple review or protest can:

  • Reduce operating expenses
  • Increase property value
  • Improve cash flow

Don’t let property tax myths cost you money. PropertyTaxes.Law reviews properties every day and knows where appraisal districts make mistakes. Let us handle the protest process and take the worry off your shoulders. 

Call us today at 832-919-8800 for a free, no-obligation review of your property taxes.

Frequently Asked Questions (FAQ)

When is the deadline to protest property taxes in Texas?

In most cases, the deadline to protest property taxes in Texas is May 15th, or 30 days after the appraisal district mails your Notice of Appraised Value—whichever is later. It is critical to file on time, as late protests are rarely accepted without a strong reason.

The property tax protest cost depends on how you handle it. You can file for free on your own. If you hire a firm, most professional services work on a contingency basis. This means you pay nothing upfront, and the fee is just a percentage of the taxes they save you. If they don’t lower your taxes, you generally don’t pay.

To win a protest, you need evidence. Successful property tax protest evidence often includes:

  • Photos of physical damage (cracks, water damage, old roof).
  • Repair estimates from contractors.
  • Recent sales data of similar homes (comps) that sold for less than your value.

Yes. Most appraisal districts in Texas allow you to file your Notice of Protest via their website using their “e-file” system. However, while filing is easy, gathering the data to win the argument is harder. Many owners choose to hire a professional to ensure the evidence is presented correctly.

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