Protest Resources

Harris County CAD Overview

Harris County Appraisal District (HCAD) is the largest appraisal district in Texas, encompassing the Houston metropolitan area.  It’s responsible for accurately valuing $627 billion in Harris County home property valuations; by comparison, Dallas is second with $350 billion (data from Texas State Comptroller 2019 County Report of Property Values).  HCAD‘s residential property values are the starting point for the taxes levied by the various taxing jurisdictions in Harris County; however HCAD does not set your tax rate.  The values set by HCAD impact the taxable value of your property. A lower value means lower taxes for you. 

You can find out your most recent property value for Harris County by visiting the Appraisal District Site here and entering your property information.

Taxing Jurisdictions for HCAD

HCAD is responsible for the largest population and property coverage in Texas. With Harris county being the third largest in the country, encompassing the Houston Metropolitan area (covering Houston, The Woodlands, and Sugar Land), it is responsible for a wide range of taxing jurisdiction.

You can learn more, as well as find a list of current tax jurisdictions covered by Harris County CAD here.

How does HCAD accomplish its job and how do its methods affect you, the homeowner? 

Harris Appraisal Process

HCAD is required to appraise only one third of its properties each year.  Thus, your property’s appraisal may remain unchanged from year to year.  If your property is not reappraised, the district is not obligated to send you a Value Notice. Regardless of your appraisal status, Property Tax Protest highly recommends you protesting your property value every year. Protesting is the only way to determine if your property value is appropriately justified by Harris County.

The Property Tax Appeal and Hearing Processes

Tax protest is the most direct way to resolve any disputes or disagreements that you have with the valuation of your property in Harris County. Your right to protest property taxes in Texas is enshrined in the Texas Constitution.  Its roots hearken back to “No taxation without representation” which motivated the thirteen colonies to revolt against English rule. 

It is important that you protest your property value every year. If you do not protest while others do and they obtain reductions one result is that you will pay more to make up for their property tax savings.  The tax rate set by the taxing jurisdictions will need to increase to offset the aggregate reductions granted to successful protesters.

The protest process is complex. Many owners neglect to use all the relevant grounds for appeal to the Appraisal Review Board.  For homeowners these include both Value Above Market (comparable sales) and also Inequality of Assessment (comparable assessments). 

You can find more information here on the types of protests you are entitled to, as well as a detailed account of the different types of property values and terms you will encounter during the protest process.

Mass Appraisal Techniques

To evaluate at least one third of $627 billion in property values each year HCAD uses Mass Appraisal techniques which evaluate properties in large batches rather than individually. In any one year, Harris County is responsible for appraising over $200 billion in property values. Mass appraisal is only an estimate of value using systems and logical analysis of data, not separate appraisals.

But the Texas Property Tax Code requires individual characteristics that affect a property’s market value also be evaluated in determining that property’s market value (Section 23.01). Thus, the basis for a taxpayer’s protest is that individual characteristics of the property were not sufficiently considered when HCAD used mass appraisal techniques. That is the heart of your argument. To win a property tax reduction at the Appraisal Review Board an owner or agent must be able to demonstrate how those characteristics differentiate the property from the mass.

You know your property better than the appraisal district does. Property Tax Protest believes you should use that expertise to differentiate your property from the other properties in the county used by HCAD to support their value for your property.  

Harris Central Exemptions

Harris Central Appraisal District also adjudicates taxpayers’ requests for exemptions which reduce their tax burdens.

• The Homestead Exemption is the most common exemption sought by property owners in Harris County; it accounted for $216 billion (36%) of the HCAD’s $627 billion total in 2019. 
• The homestead exemption limits the amount by which the appraisal district may increase a property’s market value since the most recent appraisal.  Thus, the homestead exemption helps the homeowner avoid large tax increases in a rising market.  

Paying Your Property Tax

Paying your property taxes on time is important to prevent interest or penalties. The exemptions on file can cause slight deviation from the deadline, so it is important for the homeowner to understand the specific due dates on the property. 

• January 31 – Payment of taxes is due by January 31 of the following year

• Many owners pay by December 31 to obtain a deduction on their current year federal income taxes. 
• If you have the Over 65 exemption or the Disabled exemption, then you may pay one quarter of your total tax by January 31 and one quarter each on March 31st, May 31st and July 31st without charge for interest or penalties.
• If you have the Over 65 exemption you may also defer payment of property taxes entirely until the property changes ownership, often through probate.  However, deferred taxes accrue interest at 8% per annum.  To avoid cumulative charges against the property it is advisable to protest unreasonable current year value increases since a successful protest will reduce the amount ultimately due when the property changes ownership.
•  Failure to pay property taxes when due will result in substantial penalties (starting February 1 at 15% of the amount due) and interest which will continue to accrue until full payment is made.  There is usually no compromise available to delinquent taxpayers.
• Taxes due constitute a lien against your property and can, in rare instances, lead to foreclosure and loss of ownership.

Are There Negative Consequences to Protesting Every Year?

No, in fact there are positive implications that will prolong the life of any reduction you obtain.  The Texas Property Tax Code specifies that “In the next tax year in which the property is appraised (following a successful protest), the chief appraiser may not increase the appraised value of the property unless the increase by the chief appraiser is reasonably supported by clear and convincing evidence. . . . The burden of proof is on the chief appraiser to support an increase…”  Texas Property Tax Code, Section 23.01(e).‍

Hire a Professional

Property Tax Protest will take care of the entire protest process by doing the following:

• File a protest with the Harris Central Appraisal District using all the grounds for appeal available to you.
• Present arguments for your fair market value to the appraisal district and, as necessary, to the Harris Appraisal Review Board. 
• Present arguments for Inequality of Appraisal as it applies to your property.  The Inequality argument is complex; many consultants don’t know how to present it effectively.
• Make sure you pay only your fair share of property taxes, not more.
• Continue the process automatically each year until you cancel the service so that you know you are protected against unreasonable increases in your property taxes.  It’s like an insurance policy with no advance premium. 

Options After the Appraisal Review Board Hearing

If you are not satisfied with the result of the Appraisal Review Board hearing you have further options with which Property Tax Protest can assist you.  You can:

• Request binding arbitration (an arbitration that appeals the Appraisal Review Board’s decision).  Binding arbitration requires a deposit (up to $500 for most homeowners) which is returned to the owner if the arbitrator awards a market value closer to the owner’s request than to the Board’s. 
• Property Tax Protest will share the risk of binding arbitration with you.  If the arbitrator’s award results in less savings than your deposit, Property Tax Protest will pay you half difference.  Clearly, Property Tax Protest will not take a binding arbitration case unless it believes you can win.
• File a judicial appeal.  This is usually not cost effective for homeowners. 

Let Property Tax Protest Handle Your Protest.

Pay Only Your Fair Share, Not More

Ready to save?  Start here.

The coronavirus pandemic and ensuing economic recession has skyrocketed house values in the Dallas – Fort Worth metroplex through the course of 2020. North Texas median home real estate prices were up 9% for the first nine months of 2020 and 13% for November compared to the prior period.  Homeowners can expect the robust 2020 housing market to influence their taxable assessed values, and subsequent property taxes in Texas, when the Texas appraisal districts publish 2021 values in April.

Dallas Fort Worth 2020 Real Estate Market Trends

Although housing activity usually declines during the last quarter of any year, in 2020 year over year sales in North Texas for October and November were up over 20% compared to the prior period.  Low mortgage rates are the primary driver of increased sales, as lower rates expand homebuyer’s budgets, and the COVID-19 pandemic has encouraged people to get into larger living quarters for the longer term.

The impact of Mortgage Rates

Current mortgage rates are at record lows, “an all time low of 2.81% in the week ending Oct, 15,” as the Fed continues to support the real estate market as we work our way out of an economic recession. Decreased mortgage rates allow buyers to spend less on monthly interest payments, expanding their budgets on the home value they can afford. Affordability in the US housing market improves with low rates, so buyers are less concerned about taking on increased debt.

Increased Property Demand

The flood of buyers into the housing market was unexpected following the onset of the pandemic.  The expectation was another economic recession would bring lower home values and decrease buyer interest, however the opposite has come to fruition. Individuals who remained employed through the pandemic often transitioned to working from home. With more time spent at home, potential homebuyers started shopping for larger homes that could support a lifestyle with home offices and larger outdoor spaces.

Supply Constraints

Because of COVID-19, construction on new homes has hit some supply chain hiccups as they are having trouble sourcing the raw materials needed to complete homes and hire additional labor to keep up with demand. Homebuilding in the third quarter was up 34% from prior year levels but builders are reporting sales prior to completion due to the unsatisfied demand. As a result, new construction and listings declined and more buyers are chasing less properties.

In the current real estate market, November’s preowned home inventory for sale was down to 10,600 units – a thirty year low — while sales for the month were 9,400.  As recently as August listings were up as high as 25,000 in North Texas.  In 2010 listings were above 40,000 in number.  North Texas preowned home prices are up over 50% for the past five years.

2021 Housing Market Trends

There appears to be no relief in sight in 2021 for homeowners who are sensitive to higher taxes arising from higher home sales prices.  According to James Gaines, chief economist for the Real Estate Center at Texas A&M University, “All indicators say we are going to have a good, strong, solid market.  I think for the first six to nine months (of 2021) there will be that momentum effect.”

Will housing prices drop in 2021? “In the D-FW area, Realtor.com predicts that home sales will rise 11.3% in the year ahead. Median home sale prices in the area are forecast to increase 4.4%.”

The date for 2021 Texas taxable valuations by appraisal districts is January 1.  Sales for the prior 15 months and the following three months – through March 31 – are used to establish values using current market trends.  This means that your taxes in Texas will encompass the entire 2020 real estate trends.

Protesting your Tax Assessed Value

Homeowners, however, have a powerful tool available to help control their property’s taxable valuations.  Appraisal districts use Mass Appraisal techniques which evaluate properties in large batches rather than individually.  Mass appraisal is only an opinion and estimate of value using systems and logical analysis of data, not separate, individual appraisals.

But the Texas Property Tax Code (Section 23.01) requires individual characteristics that affect a property’s market value also be evaluated in determining that property’s market value.   Thus, the basis for a taxpayer’s protest is that individual characteristics of the property were not sufficiently considered when the districts use mass appraisal techniques.  To resist the higher values that are likely to be proposed by the appraisal districts in April an owner or agent must be able to demonstrate how those characteristics differentiate the owner’s property from the contemporary market of homes being sold.

Property Tax Protest has been building protest cases effectively for its’ clients since 1998. We will help mitigate your risk to the rising housing market by making sure you exhaust all legal avenues to lower your Texas property taxable value, saving you money when you need it most.

Dallas County CAD Overview

Dallas Central Appraisal District (DCAD) is the second largest appraisal district in Texas, encompassing portions of the Dallas metro area.  It’s responsible for accurately valuing $350 billion in Dallas County home property valuations.  Dallas county’s residential property values are the starting point for the taxes levied by the various taxing jurisdictions across Dallas County; however DCAD does not set your tax rate.  The values set by DCAD impact the taxable value of your property, what your property taxes are based on. A lower value means lower taxes for you. 

DCAD accomplishes this by appraising one third each year.   Thus, any one property’s appraisal may remain unchanged from year to year. If your property is not reappraised, the district is not obligated to send you a Value Notice. Regardless of your appraisal status, Property Tax Protest highly recommends you protesting your property value every year. Protesting is the only way to determine if your property value is appropriately justified.

You can find out your most recent property value for Dallas County by visiting the Appraisal District Site here and entering your property information.

Taxing Jurisdictions for Dallas Central Appraisal

The Dallas Appraisal District handles matters only concerning property values, protests, and exemptions. It does not set the amount of taxes charged against your property; that is done by the jurisdictions like cities, towns, school districts, hospital districts and others that set tax rates which, when applied to DCAD’s valuations, will be sufficient to fund their operations. 

You can learn more, as well as find a list of current tax jurisdictions covered by Dallas County CAD here.

The Property Tax Appeal and Hearing Processes

Tax protest is the most direct way to resolve any disputes or disagreements that you have with the valuation of your property and the only way to protest your Texas property taxes. Your right to protest is enshrined in the Texas Constitution.  Its roots hearken back to “No taxation without representation” which motivated the thirteen colonies to revolt against English rule. 

It is important that you protest your property value every year. If you do not protest while others do and they obtain reductions one result is that you will pay more to make up for their property tax savings.  The tax rate set by the taxing jurisdictions will need to increase to offset the aggregate reductions granted to successful protesters.

The protest process is complex. Many owners neglect to use all the relevant grounds for appeal to the Appraisal Review Board.  For homeowners these include both Value Above Market (comparable sales) and also Inequality of Assessment (comparable assessments). 

You can find more information here on the types of protests you are entitled to, as well as a detailed account of the different types of property values and terms you will encounter during the protest process.

Mass Appraisal Techniques

To evaluate at least one third of $350 billion in property values each year Dallas Central Appraisal District uses Mass Appraisal techniques which evaluate properties in large batches rather than individually. In any one year, Dallas County is responsible for appraising over $100 billion in property values. Mass appraisal is only an estimate of value using systems and logical analysis of data, not separate appraisals.

But the Texas Property Tax Code requires individual characteristics that affect a property’s market value also be evaluated in determining that property’s market value (Section 23.01).  Thus, the basis for a taxpayer’s protest is that individual characteristics of the property were not sufficiently considered when DCAD used mass appraisal techniques.  That is the heart of your argument.  To win a property tax reduction at the Appraisal Review Board an owner or agent must be able to demonstrate how those characteristics differentiate the property from the mass.

You know your property better than the appraisal district does. Property Tax Protest believes you should use that expertise to differentiate your property from the other properties in the county used to support their value for your property.  

Dallas Central Exemptions

Dallas Central Appraisal District also adjudicates taxpayers’ requests for exemptions which reduce their tax burdens.

• The Homestead Exemption is the most common exemption sought by property owners in Dallas County; it accounted for $127 billion (36%) of the DCAD’s $350 billion total in 2019. 
• The homestead exemption limits the amount by which the appraisal district may increase a property’s market value since the most recent appraisal.  Thus, the homestead exemption helps the homeowner avoid large tax increases in a rising market.  

Paying Your Property Tax

Paying your property taxes on time is important to prevent interest or penalties. The exemptions on file can cause slight deviation from the deadline, so it is important for the homeowner to understand the specific due dates on the property. 

• January 31 – Payment of taxes is due by January 31 of the following year

• Many owners pay by December 31 to obtain a deduction on their current year federal income taxes. 
• If you have the Over 65 exemption or the Disabled exemption, then you may pay one quarter of your total tax by January 31 and one quarter each on March 31st, May 31st and July 31st without charge for interest or penalties.
• If you have the Over 65 exemption you may also defer payment of property taxes entirely until the property changes ownership, often through probate.  However, deferred taxes accrue interest at 8% per annum.  To avoid cumulative charges against the property it is advisable to protest unreasonable current year value increases since a successful protest will reduce the amount ultimately due when the property changes ownership.
•  Failure to pay property taxes when due will result in substantial penalties (starting February 1 at 15% of the amount due) and interest which will continue to accrue until full payment is made.  There is usually no compromise available to delinquent taxpayers.
• Taxes due constitute a lien against your property and can, in rare instances, lead to foreclosure and loss of ownership.

Are there Negative Consequences to Protesting Every Year?

No, in fact there are positive implications that will prolong the life of any reduction you obtain.  The Texas Property Tax Code specifies that “In the next tax year in which the property is appraised (following a successful protest), the chief appraiser may not increase the appraised value of the property unless the increase by the chief appraiser is reasonably supported by clear and convincing evidence. . . . The burden of proof is on the chief appraiser to support an increase…”  Texas Property Tax Code, Section 23.01(e).‍

Hire a Professional

Property Tax Protest will take care of the entire protest process by doing the following:

• File a protest with the Dallas Central Appraisal District using all the grounds for appeal available to you.
• Present arguments for your fair market value to the appraisal district and, as necessary, to the Dallas Appraisal Review Board. 
• Present arguments for Inequality of Appraisal as it applies to your property.  The Inequality argument is complex; many consultants don’t know how to present it effectively.
• Make sure you pay only your fair share of property taxes, not more.
• Continue the process automatically each year until you cancel the service so that you know you are protected against unreasonable increases in your property taxes.  It’s like an insurance policy with no advance premium. 

Options After the Appraisal Review Board Hearing

If you are not satisfied with the result of the Appraisal Review Board hearing you have further options with which Property Tax Protest can assist you.  You can:

• Request binding arbitration (an arbitration that appeals the Appraisal Review Board’s decision).  Binding arbitration requires a deposit (up to $500 for most homeowners) which is returned to the owner if the arbitrator awards a market value closer to the owner’s request than to the Board’s. 
• Property Tax Protest will share the risk of binding arbitration with you.  If the arbitrator’s award results in less savings than your deposit, Property Tax Protest will pay you half difference.  Clearly, Property Tax Protest will not take a binding arbitration case unless it believes you can win.
• File a judicial appeal.  This is usually not cost effective for homeowners. 

Let Property Tax Protest Handle Your Protest.

Pay Only Your Fair Share, Not More

Ready to save?  Start here.

Overview 

• Houston home values ended 2020 at a record high as a result of a thriving market
• Harris Central Appraisal District (HCAD) will base its 2021 appraisal of your property on market conditions as of January 1, 2021
• Based on market conditions, homeowners can expect significant increases in their taxable values 
• To control property taxes successfully homeowners must therefore use Inequality of Appraisal (comparable assessments) in addition to Value Above Market (comparable sales) when protesting 2021 values to the Appraisal Review Board.

2020 Market Report – Houston, Harris County

According to the Houston Association of Realtors’ Annual Market Report, 2020 was an exceptional year for the real estate market. According to all the trends – properties sold, total home values and average sale values, the housing market thrived in 2020. Despite the devastating effects of COVID-19 on the US economy, the Houston real estate market set record after record as it worked through the new normal created by the pandemic. With 2020 trends in the rearview mirror, the impact on your Texas property taxes are front and center as Harris county property owners receive their new (and most likely higher) appraisal values on their property.

A record 96,151 single family homes were sold in 2020, up 10% over the 86,996 sold in 2019, the previous calendar year.  Total dollar volume exceeded $35 billion, up 18% over 2019.  Home prices set new December highs with the average home value rising 11.4% to $347,164 while the median price – the figure at which half sold for more and half sold for less – rose 8.7% to $273,443.

Average and median home values set records which will result in higher appraisal values when HCAD publishes its 2021 Notice Values and the protest season begins in early April. 

In what many thought would be a down year in the US housing market after the onset of the pandemic turned out to be quite the opposite. While the pandemic interrupted housing activity in March and April, the market substantially rebounded through the remainder of 2020 as a result of real estate’s listing as an ‘essential service.’

The strongest December activity occurred in the $500,000 to $750,000 price range where sales jumped 81% over the prior same month.  Second place was taken by homes priced $750,000 and up which grew 54% and in third place were homes in the $250,000 to $500,000 price range which grew 45%.

Year to date average home sales prices rose 5.9% to $324,000 compared to $306,000 in 2019. Median prices increased 6.1% to $260,000 compared to $245,000 last year.  But December’s average rise to $347,164 and median to $273,443 reflect the acceleration of values at year end.  In fact, December month end pending sales of single family homes rose to 7,469 — a 41% increase over the previous year.

Rising values are likely to continue well into the current year since new listings – unsold inventory – declined to a 1.9 month supply from a 3.2 month supply a year ago.  The Real Estate Center at Texas A&M University estimates 6.5 months of inventory as a balanced housing market.  Nationwide inventory stands at 2.3 month supply according to the National Association of Realtors.  Houston’s experience is not an outlier.

Harris County Property Tax Impact

With values rising faster than incomes, homeowners are faced with a dilemma: rising values means rising equities but also rising property taxes. Rising Texas taxes can have an immediate and lasting effect on homeowners, while rising equities can help an owner when they look to sell their residential property. Harris Central Appraisal District (HCAD) publishes its new taxable values each year in April.  In April, homeowners can expect an increase in property value based on 2020 trends.

How to Protest

Owners can protest to the Appraisal Review Board by May 15 or sixty days after receipt of HCAD’s Value Notice, if they receive one. (Not all homeowners will receive a Value Notice.)

 If you are dissatisfied with your 2021 proposed property values, Property Tax Protest can take care of the entire protest process on your behalf. We will protest your 2021 market value on both Comparable Sales and Inequality of Appraisal, making us more likely to succeed on your protest. Inequality is an equalizer for homeowners who feel they are overtaxed by a rising market. All you have to do is fill out one simple form and we will take it from there.

We will file a protest on all grounds available for your property, including but not limited to a comparison of your proposed value to the rest of the market and inequality of appraisal. A protest based solely on comparable sales is less likely to succeed than one which includes Inequality of Appraisal (comparable assessments).  Inequality is an equalizer for homeowners who feel they are overtaxed by a rising market, such as one Harris county experienced in 2020.

Inequality is one of the least understood arguments for a reduction before the ARB. When successful it always results in a value below market. Many agents don’t know how to pursue Inequality due to its complexity and nuances. At Property Tax Protest, we’ve done it successfully more often than not. We will work on your behalf to minimize the amount of Texas property taxes you owe in Harris county. You can get started here.

Capped Property Values 

In Texas, there are a few property tax exemptions you can file for to limit how much your Texas property taxes can increase per year. This article will focus on one exemption, the Homestead exemption, which provides a residential property own a capped value on property tax increases year over year. 

What does a capped value mean as it relates to Texas taxes? 

Applying for a Homestead exemption caps the maximum increase on taxes a residential property owner can receive since the latest reappraisal to 10%.  Some people believe this to mean that market values for a residential homestead in Texas cannot be increased more than 10% in any one year. This notion is false, as the capped value is based on the date from the latest reappraisal and applies to your assessed (or taxable value), not the market value. The market value can be whatever the market currently supports. 

You can understand more about the differences between market and appraised values here. 

The 10% limitation is an annual limit to the assessed (or taxable) value and it dates from the latest reappraisal.  If that reappraisal occurred two years ago, your new assessed value can exceed last year’s by 20%.   The limitation applies only to a residential homestead; you must have filed for the homestead exemption. Your assessed (or taxable) value can be less than your market value (it will never be more) and in that case you’ll pay taxes on the lower value (until it increases 10% per year up to but not in excess of the market value.)  You should still protest your market value, even if your appraised value is capped under the Homestead Exemption. 

The appraised value of a residence homestead for a tax year may not exceed the lesser of: the market value of the property; or the sum of:

• 10 percent of the appraised value of the property for the last year in which the property was appraised for taxation times the number of years since the property was last appraised;
• the appraised value of the property for the last year in which the property was appraised, and the market value of all new improvements to the property.‍

What this means is that a property’s assessment can be increased more than 10% from its previous assessment if the previous reappraisal is more than one year old.  For example, if the latest reappraisal was two years ago then the new assessment’s limitation on increases is 20%. All this assumes two things:

• That the homeowner qualified the property for a homestead exemption. If you did qualify the property for a homestead exemption, the limitation applies starting January 1 of the following year.  But if you overlooked filing for your homestead exemption, the 10% per year limitation on increases does not apply.
• If you added improvements or land, then the value of the improvements or land can be added to the assessment in the following year without regard to the 10% limitation. But in subsequent years the 10% limitation per year would apply to the entire property, including improvements or land.

How to Apply for a Homestead Exemption in Texas 

In Texas, it is extremely important to do everything in your power to limit your property taxes. Property Taxes in counties across Texas are one of the largest tax categories given there is no state income tax. You need to limit your maximum property tax increase in any given year by capping you maximum liability. 

In order to apply for a Homestead Exemption, you need to make sure you occupied the home as your primary residence as of January 1 of the current year and have submitted the required documentation with you county. 

You can find your county specific requirements and forms below. 

Collin Appraisal District Homestead Exemption

Dallas Appraisal District Homestead Exemption 

Denton Appraisal District Homestead Exemption 

Harris Appraisal District Homestead Exemption 

Tarrant Appraisal District Homestead Exemption: 

Travis Appraisal District Homestead Exemption: 

Property Tax Protest is your one stop shop for all the legal advice and direction you need to cap your Texas property taxes and also protest your market value to ensure you are paying your fair share of Texas Taxes.

• Austin housing values ended 2020 at a record high
• Travis Central Appraisal District (TCAD) bases its 2021 appraisals on market conditions as of January 1
• Homeowners must therefore include Inequality of Appraisal (comparable assessments) when protesting 2021 taxable values to the Appraisal Review Board (ARB).

The Austin-Round Rock MSA housing market broke demand records in 2020 and experienced an exceptional year for the number of properties sold and total dollar volume.  Average and median home values also set records.  The median home value for the full year rose 9.2% to $344,000.  It was an all-time record according to the Austin Board of Realtors’ (ABoR) Annual Market Report for 2020.

As a result, comparable sales will tend to support the appraisal district’s higher values when the protest season begins in April. 

Pending sales are now outpacing new listings, indicating that homes are selling faster than properties can come on the market according to ABoR.

City of Austin

In Austin proper 2020 home sales median prices rose 12% to $420,000, a record.  In December the median sale price rose 18.7% to $461,000, confirming the upward trend in values. 

Travis County

In Travis County median prices increased 12% year over year to $405,000.  Active listings dropped 55% at year end to 1,038 while pending sales increased 38.6% to 1,537.

Williamson County

In Williamson County median prices increased 7.7% to $307,000.  Active listings fell 41.4% to 1,322 in December while pending sales increased 12.6% to 14,158. 

Property Tax Impact

Rising property values mean rising equities but also rising property taxes which have an immediate impact on homeowners’ budgets. 

Travis Central Appraisal District will publish its new taxable values in April.  Based on 2020 sales trends owners can anticipate substantial increases for 2021.

How to protest

Owners can protest to the Appraisal Review Board by May 15 or sixty days after receipt of HCAD’s Value Notice if they receive one.  (Not all homeowners will receive a Value Notice from TCAD.)   But a protest based solely on comparable sales is less likely to succeed than one which includes Inequality of Appraisal (comparable assessments).  Inequality is an equalizer for homeowners who feel they are overtaxed by a rising market.

Inequality is one of the least understood arguments for a reduction before the ARB.  When successful it always results in a value below market.  Many agents don’t know how to pursue Inequality because it’s complicated.  At Property Tax Protest we’ve done it successfully more often than not.  To learn how we use Inequality of Appraisal to get you the value you deserve, click here.  Or you can sign up here to get started saving now.

Many property owners file their own protest rather than use an agent. How does that work out?According to one chief appraiser, about 50% of self filers never show up for the hearing. Others appear but without convincing evidence. Still others appear with what they think is relevant evidence only to find that it’s not persuasive.  Others will protest values that don’t have “a snowball’s chance” of getting reduced because they are fair.  Some will appear with a real estate broker’s Comparative Market Analysis (CMA) only to find it doesn’t fit the ARB’s criteria.  Many will go away frustrated and unhappy because they had an emotional (as well as financial) investment in getting that reduction.To see some of what’s involved in presenting your case to the ARB, look here: Is a CMA from MLS Sufficient for an ARB Hearing?

If you are a homeowner in Harris County, Texas, it’s essential that you know how your annual property taxes are determined. Too many people overpay their property taxes because they don’t understand where the number comes from and how to get their tax bill reduced. By learning how Houston property tax is calculated, you can ensure that you don’t pay more than your fair share.

How Are Harris County Property Taxes Calculated?

Under Texas law, property taxes are what is known as an “ad valorem” tax, which means that the amount of tax you pay is based on the market value of the property for which the tax is being paid. This means that a substantial determinant in your property tax bill is the value of the real estate you own.  

When it comes to the amount of Harris County property tax you owe, the amount depends on three factors: 

• The appraisal value of your property, as established by the Harris County Appraisal District
• The tax rates set by each taxing unit in which your property is located
• Whether you are entitled to any exemptions, such as a homestead exemption

Each of these factors is explained in detail below.

Appraised Property Value

Since property taxes are based on the value of your property, it makes sense that the first step in calculating property taxes is to conduct an appraisal of the real estate being taxed. In Texas, an appraisal district in each county determines property values each year through appraisals conducted between January 1 and April 30. The Harris County Appraisal District (Harris CAD) participates in appraisal activities throughout the year, and residential field staff members enter neighborhoods to verify certain property characteristics and changes.

Taxing Unit Tax Rates

After the property is appraised, local taxing units like counties, cities, school districts, and special hospital and fire districts receive a list of property values to use when setting a budget. The taxing unit will first determine how much money it needs for its annual operations and then set property tax rates accordingly. 

After the tax rates for the various taxing units are fixed, the amount of property taxes you owe each local taxing unit is calculated. While most properties will be subject to taxation by several taxing units, in Harris County, you will receive a single property tax statement from the Harris County Property Tax Accessor-Collector, who is responsible for levying and collecting property taxes and then disbursing the proceeds to the appropriate taxing units.

Exemptions

Another important consideration when determining your Harris County property tax bill is whether any part of your property value is exempt from taxation. The most commonly used exemption is the homestead exemption, which applies to owner-occupied residential homes. This exemption establishes a specific amount of value that is not taxable in your primary residence, which reduces the taxable value of your home. So, for example, if your home’s appraisal value is $200,000 and you receive a $25,000 homestead exemption, you will be taxed as if your home’s appraisal value was $175,000.

Homestead exemption amounts are not standardized and are determined by each taxing unit separately. In Harris County, eligible property owners will receive a $25,000 minimum homestead exemption for their school district taxes. Harris County also offers an optional 20% homestead exemption for all homeowners, and any other taxing unit can provide an exemption for up to 20% of a home’s value. If a percentage-based exemption is offered, you will receive at least $5,000, even if 20% of your home’s value is a lower amount.

How Much Are Harris County Property Taxes?

Because of the way property taxes are assessed in Texas, residents in different areas of Harris County will pay different property tax rates, since each local taxing unit is responsible for setting its own property tax rates. Generally, the average effective tax rate, which is calculated by consolidating the tax rates for every taxing unit, in Harris County is around to 2%, with some areas paying more and others paying less. 

In Harris County, the median annual property tax payment for 2018 was $3,356, and the median home value was $165,300. However, Harris County is a large and diverse county, with median home values ranging from $73,400 in some locations to over $1.8 million in others. 

Given the vast array of home values, it can be difficult to predict what your property tax bill might be based on general statistics. However, the Harris County Appraisal District lists jurisdiction tax rates and the available exemption amounts for each taxing unit. 

How Do I Protest My Property Taxes?

Many people think they are stuck paying the amount listed on the tax statement they receive. Fortunately, this is not the case. Texas law gives you the right to protest your home’s appraisal value if you believe it is too high. If you’re successful in securing a lower appraisal value, you will owe less in property taxes.

Once the Harris County Appraisal District assesses the value of your property during the first couple of months of the year, you will receive a notice of the appraised property value in April or May. If you disagree with the assessed value of your house, you can file a property tax protest on the appraisal district’s website.

An independent group of Harris County property owners known as the Appraisal Review Board is responsible for resolving disputes between property owners and the appraisal district. During the protest process, you or your legal representative will be able to submit evidence and present arguments that show why the appraisal value for your home is incorrect. The Appraisal Review Board will then make a final determination based on each side’s arguments, and if they agree with your position, reduce the appraisal value for your home. 

Protesting your property taxes can be challenging, particularly if complicated arguments need to be made. At Property Tax Protest, we know how to win protests because we have been doing it successfully for over 20 years. We know what works and what doesn’t and we have a long history of helping our clients pay only their fair share of property taxes. Sign up with us today with no risk.  There’s no upfront fee and if there’s no reduction there’s no fee.

When you own real estate in Travis County, Texas, the Travis Central Appraisal District is the entity responsible for determining the market value of your home for the purposes of property taxes. But how exactly does this process work? This guide will explain what you should know to navigate property tax appraisals and protests in the Travis Central Appraisal District. 

What Is an Appraisal District? 

In Texas, property taxes are assessed based on the value of the real estate being taxed. So, for taxing entities to calculate property taxes, the value of the property must first be established. An appraisal district in every Texas county is responsible for assessing property values each year. Each appraisal district is operated by a chief appraiser, with property appraisals typically taking place between January 1 and April 30. 

What Areas Are Included in the Travis Central Appraisal District?

Travis County is located in south-central Texas and includes Austin and the surrounding areas. Other towns that are part of the Travis Central Appraisal District include:

• Pflugerville
• Lakeway
• Manor
• Wells Branch
• Lago Vista
• Bee Cave
• West Lake Hills
• The Hills
• Jonestown
• Garfield
• Briarcliff
• Rollingwood
• Manchaca
• Point Venture
• Sunset Valley
• Volente
• San Leanna
• Webberville
• Creedmoor

Additionally, parts of Round Rock, Mustang Ridge, Jollyville, Leander, and Cedar Park are located in Travis County. If you are unsure whether your real estate is subject to Travis County property tax, you can search the Travis Central Appraisal District database by owner name or address. 

What Property Tax Exemptions Are Available in the Travis Central Appraisal District?

Many property owners in Travis County will qualify for at least one property tax exemption.  Exemptions reduce the taxable value of your property, or in some cases, exempt you from property taxes altogether. For a complete list of all available exemptions in Travis County, visit the Exemption Forms page on the Travis Central Appraisal District website.

The most common property tax exemptions are homestead exemptions. The general homestead exemption applies to owner-occupied residential real estate and protects homeowners against large taxable increases in a property’s taxable value. This results in a lower property tax bill.

To qualify for the general homestead exemption, you must have owned and lived in the property as your primary residence as of January 1st of that tax year. Each taxpayer can only claim one homestead exemption, even if they own multiple properties. 

In addition to the general homestead exemption, other exemptions are available for seniors, disabled people, disabled veterans, and surviving spouses.

You can apply for a homestead exemption between January 1st and April 30th by submitting the homestead exemption form in person at the Travis Central Appraisal District office (850 East Anderson Lane, Austin, TX 78752) or by submitting an online application.

What is the Property Tax Protest Process for the Travis Central Appraisal District?

Once appraisals have been completed, the Travis Central Appraisal District will send property owners a Notice of Appraised Value if their property’s market value has increased by $1,000 or more from last year’s value. If you disagree with the assessed market value of your real estate, you have the right to file a protest against that value. 

Filing a Property Tax Protest 

If you want to protest the appraised market value of your property, you can file a protest online to receive immediate confirmation. You can also submit a protest form in person at the Travis Central Appraisal District office or by mail to:

Travis Central Appraisal District

PO Box 149012

Austin TX 78714

To submit a protest, you’ll need to provide the following information:

• The name of the property owner
• Information about the property
• The reasons for protest
• Any additional facts that might help resolve the protest

You will also be able to list your opinion of what your property’s value should be if you choose to do so and provide evidence that suggests a lower market value for your home would be more appropriate.

The Informal Settlement Stage

Between the time you file your protest and the protest hearing, you will have the opportunity to consider a settlement offer from the appraisal district based on the evidence you provide supporting your position. The evidence provided is the key test for a reduction. It must accurately support a reduction of the current property value. If you do not accept a settlement offer during this stage, you will be able to present your case to the Travis Appraisal Review Board (ARB).

The Appraisal Review Board (ARB) Hearing Stage

The Travis Appraisal Review Board (ARB) is a group of citizens that resolves disputes between property owners and the Travis Central Appraisal District. ARB members are appointed by the Travis County Local Administrative District Judge and are entirely independent of the appraisal district.

A panel of three ARB members will review testimony and evidence and decide property tax protests that do not settle during the informal stage. At an ARB hearing, both the property owner (or protest agent) and an appraisal district representative will present evidence and answer questions from the ARB panel. These hearings typically only last 15 to 20 minutes, and a property owner will receive a Notice of Final Order detailing the ARB’s final decision by certified mail.

You can participate in your property tax protest hearing in person, by phone, or by affidavit. If you choose to attend in person, the hearing will take place at one of two Travis Central Appraisal District office locations: 850 E. Anderson Lane or 8314 Cross Park Drive. The letter you receive to schedule your hearing will identify at which location your hearing will be held.

Property owners who choose a telephone hearing will be able to present their case verbally and by remote screen sharing. Property owners who select an affidavit-based hearing will only share their evidence and arguments through a written affidavit.

Want to protest your Austin property tax? Property Tax Protest can help. We have over 20 years of experience successfully protesting property tax appraisals and ensuring our clients don’t pay more than their fair share of property taxes. Sign up for our services today risk-free. There’s no upfront fee and if there’s no reduction then our services are free.