Property Tax Glossary — Texas

The dollar amount placed on your property by the county appraisal district for the purpose of calculating property taxes. In Texas, assessed value for homesteaded properties is capped at a 10% annual increase, so it may be lower than the appraised (market) value.

The appraisal district's estimate of your property's market value as of January 1 of the tax year. This figure represents what the district believes your home would sell for in an open-market transaction and serves as the starting point for your assessment.

The price a property would sell for in a voluntary, arm's-length transaction between a willing buyer and a willing seller, neither being under any compulsion to act. It is determined by analyzing recent comparable sales in the area.

Recent sales of properties similar to yours in size, age, condition, and location, used to estimate fair market value. Appraisal districts use comps to set values, and homeowners use them to challenge those values in protests.

A situation where the appraisal district's value for your property exceeds its actual market value. Overassessment means you are being taxed on more value than your home is worth.

A protest ground claiming that your property is appraised at a higher level than comparable properties in your area. Unlike an overassessment argument (which compares your value to sales), unequal appraisal compares your assessment to what similar homes are assessed at.

A tax reduction available to Texas homeowners who use a property as their primary residence. The general homestead exemption removes $100,000 from your home's assessed value for school district taxes, with additional exemptions available for homeowners over 65 or with disabilities.

The last day you can file a property tax protest with your county appraisal district. In Texas, the standard deadline is May 15 or 30 days after your Notice of Appraised Value is mailed, whichever is later.

A collection of comparable sales data, property photos, condition notes, and supporting documentation assembled to support a property tax protest. A well-organized evidence packet presents a clear case for why your property's appraised value should be lowered.

An independent panel of citizens appointed to hear property tax protests in Texas. If you cannot reach an agreement at your informal hearing, your case goes to the ARB for a formal hearing where a panel reviews your evidence and the district's evidence before making a binding decision.

A preliminary meeting between a homeowner and an appraiser from the appraisal district, held before any formal ARB hearing. The goal is to negotiate a mutually acceptable property value without going through the formal process.

The online system used by many Texas appraisal districts to submit property tax protests electronically. It allows homeowners to file a protest, upload evidence, and in some districts, participate in informal hearings remotely without visiting the appraisal district office.

The ratio of a property's assessed (or appraised) value to its actual market value, expressed as a percentage. An assessment ratio above 100% means the district values your home higher than what it would sell for; below 100% means the district's value is conservative.

A standardized metric for comparing property values, calculated by dividing a home's total value (or sale price) by its living area in square feet. It normalizes for size differences, making it easier to compare your home's assessment to similar properties.

The middle value when all property assessments (or price-per-square-foot figures) in a defined neighborhood are ranked from lowest to highest. Half of the properties fall above this value and half fall below.

The formal process of challenging your property's appraised value with the county appraisal district. In Texas, any property owner can file a protest each year, typically by May 15, and present evidence that their home is overvalued or unequally appraised.

The official document mailed by your county appraisal district each spring, informing you of your property's new appraised value for the upcoming tax year. It includes your previous value, new value, exemptions, and instructions for filing a protest.

The rate set by each taxing entity (school district, city, county, special districts) and applied to your property's assessed value to calculate your annual tax bill. Tax rates are expressed as a dollar amount per $100 of assessed value.

Under Texas Tax Code Section 23.23, the assessed value of a homesteaded property cannot increase by more than 10% per year, regardless of how much the market value rises. The capped value is calculated as last year's assessed value plus 10%, plus the value of any new improvements.

A biennial study conducted by the Texas Comptroller of Public Accounts that compares property values set by local appraisal districts to actual sale prices. The study evaluates whether each district is appraising properties at or near 100% of market value, as required by law.