A higher Notice of Appraised Value does not automatically mean your final property tax bill will rise by the same percentage. Before reacting, determine exactly what increased: market value, appraised value, taxable value, exemptions, or the tax rates later adopted by local taxing units.
First, compare the new notice with last year's market, appraised, and taxable values. Check for lost exemptions, new improvements, factual errors, and appraisal-limit calculations. Then review the appraisal district's evidence and comparable properties. If the appraisal appears unsupported, file a timely protest with the Appraisal Review Board. In most cases, the usual protest deadline is May 15 or 30 days after the appraisal district mails the notice of appraised value, whichever is later.
These are not the same thing. Texas appraisal districts determine property values, while cities, counties, school districts, and other local taxing units adopt property tax rates.
| What Changed? | What It Means | Who Controls It? |
|---|---|---|
| Market value | The appraisal district's estimate of what the property would sell for under prevailing market conditions. | Appraisal district |
| Appraised value | The value used after applying any appraisal limitation that applies to the property. | Appraisal district under Texas law |
| Taxable value | The value remaining after applicable exemptions and other adjustments. | Appraisal district / applicable law |
| Tax rate | The rate applied by each local taxing unit to taxable value. | Local taxing unit |
| Final tax bill | The resulting tax liability after taxable value and adopted rates are applied. | Tax assessor/collector calculates and bills |
Important: a Notice of Appraised Value is not the same as your final tax bill. The notice tells you the appraisal district's proposed values and generally arrives months before local taxing units finalize tax rates.
Texas property is generally appraised at market value as of January 1. An increase can result from several different factors, and identifying the reason helps determine whether a protest is worth pursuing.
Recent sales and broader market data may support a higher market value for the property or its appraisal class.
New construction or improvements that increase market value may affect the appraisal and can be treated separately from certain appraisal caps.
Square footage, classification, land size, condition, age, improvements, or other property characteristics may have changed in the district's records.
A canceled, reduced, or missing exemption can increase taxable value even when market value did not rise dramatically.
For income-producing property, appraisal assumptions involving rent, vacancy, expenses, cap rates, or comparable sales may affect value.
Your value may also deserve review if comparable properties are being appraised at lower levels even when the district defends its market-value conclusion.
Texas has appraisal limitations for certain properties, but these rules do not mean every property-tax bill is capped by the same percentage.
For a qualifying residence homestead that received the exemption in the preceding and current year, the appraised value generally cannot exceed the lesser of market value or the prior year's appraised value plus 10% and the market value of qualifying new improvements.
The market value itself can rise by more than 10%. The limitation applies to appraised value, not directly to the tax rate or final tax bill.
For 2026, certain qualifying real property that is not a residence homestead and is valued at $5.32 million or less may qualify for a temporary circuit-breaker limitation. The appraised value is generally limited to the lesser of market value or the prior appraised value plus 20% and qualifying new improvements.
2026 note: the current non-homestead circuit-breaker limitation expires Dec. 31, 2026. Property type, ownership, special-appraisal status, and other requirements matter, so confirm eligibility rather than assuming every commercial or investment property receives the limitation.
Write down the prior and current market value, appraised value, taxable value, exemptions, and any stated appraisal limitation. This shows where the increase actually occurred.
Check square footage, land size, property class, age, condition, improvements, use, and other factual data. An error matters most when you can show both the correct fact and its effect on value.
Take dated photos and collect repair estimates, inspection reports, lease or vacancy information, and other records that show condition or economic factors the appraisal may not fully reflect.
Review appropriate comparable sales and appraisal records. Similar properties can help test both market value and whether your property is being appraised equally and uniformly.
Texas taxpayers have rights to inspect non-confidential information used to appraise their property. Compare the district's evidence with your own before the ARB hearing.
In most cases, the usual deadline is May 15 or 30 days after the appraisal district mails the notice of appraised value, whichever is later. Confirm the exact deadline shown on your notice.
For the full protest process, see our Texas Property Tax Protest guide and our Texas Property Tax Deadlines resource.
| Evidence | What It Can Help Show |
|---|---|
| Comparable sales | Whether the district's market-value conclusion is supported by recent market transactions. |
| Comparable appraisal records | Whether similar properties are being appraised at lower levels for equal-and-uniform purposes. |
| Photos and repair estimates | Deferred maintenance, damage, deterioration, or condition issues not reflected in the model. |
| Property record corrections | Incorrect square footage, construction details, land size, property class, age, or improvements. |
| Rent rolls, leases, vacancy, income and expenses | Actual operating performance of income-producing commercial or multifamily property. |
| Independent appraisal or valuation report | Additional market-value support when relevant to the tax year and protest issue. |
For help organizing your evidence, review our Property Tax Protest Evidence Packet guide.
A seller's current tax bill can be useful historical information, but it is not a guaranteed forecast of the buyer's future liability. The seller may have exemptions or appraisal limitations that do not produce the same result for a new owner, and new improvements or later market conditions may affect future values.
A recent purchase price can also be relevant market evidence, but a Texas appraisal district is responsible for determining market value under the Property Tax Code. Buyers should review the property's market value, appraised value, taxable value, exemptions, appraisal limitations, taxing units, and recent tax rates before closing.
For commercial acquisitions, see our Commercial Property Tax Due Diligence guide.
Many owners can review records and file an ARB protest themselves. Professional representation may make more sense when the value at issue is substantial, the property is commercial or industrial, the valuation depends on income or specialized appraisal methods, unequal-appraisal analysis is complex, or the dispute may continue beyond the ARB.
If the issue is simply that the tax rate increased, a valuation protest may not solve the problem. A professional review should first identify whether the dispute concerns appraisal value, exemptions, appraisal limitations, or the rates adopted by local taxing units.
A higher tax bill can result from a higher taxable value, changes to exemptions or appraisal limitations, higher adopted tax rates, or a combination of those factors. Start by comparing the notice of appraised value and final tax bill rather than assuming the appraisal increase alone caused the entire change.
You can protest an appraisal district's value or other appraisal-related actions when you have grounds and meet the applicable deadline. A normal ARB protest is not the process for challenging a tax rate adopted by a city, county, school district, or other taxing unit.
For a qualifying residence homestead, the appraised value generally cannot exceed the lesser of market value or the prior year's appraised value plus 10% and qualifying new improvements. The market value itself can rise by more than 10%, and the rule does not directly cap the final tax bill.
For 2026, certain qualifying non-homestead real property valued at $5.32 million or less may receive the temporary 20% circuit-breaker appraisal limitation. Eligibility restrictions apply, and the current limitation expires Dec. 31, 2026.
In most Texas appraisal protests, the usual filing deadline is May 15 or 30 days after the appraisal district mails the notice of appraised value, whichever is later. Confirm the deadline printed on your notice.
No. The final tax bill depends on taxable value and the rates adopted by the local taxing units that tax the property. A higher market value does not necessarily translate into the same percentage increase in taxable value or the final bill.
Useful evidence can include comparable sales, comparable appraisal records, photos, repair estimates, corrected property records, income and expense information for income-producing property, and other facts that directly address the protest ground.
PropertyTaxes.Law can help review the appraisal, identify potential protest grounds, organize evidence, and evaluate your options before the filing deadline.
Review Your Property Tax IncreaseThis article provides general educational information and is not legal advice. Appraisal values, exemptions, appraisal limitations, protest deadlines, tax rates, and procedures depend on the property and facts and can change. Confirm current requirements with the applicable appraisal district, local taxing units, official Texas sources, and qualified counsel.
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