5 Signs Your Texas Home Is Overassessed
If your county appraisal district set your home's value too high, you're overpaying on property taxes. The problem is that most homeowners don't realize they're overassessed until they see the bill - and by then, the protest deadline may be close.
Texas homeowners have the right to protest their property tax appraisal every year. But should you? Here are five signs that your home's appraised value is too high and a protest is worth filing.
1. Your Appraised Value Is Higher Than Recent Sale Prices of Similar Homes
This is the strongest sign of overassessment. If comparable homes in your area - similar in size, age, condition, and location - have sold for less than your appraised value, the county's number is likely too high.
How to check: Look up recent sales (within the last 6-12 months) of homes near you on your county appraisal district's website or through real estate sites. Focus on properties that match yours:
- Similar square footage (within 10-15%)
- Same neighborhood or subdivision
- Similar age and construction type
- Comparable lot size
Example: Your home is appraised at $425,000, but three comparable homes within a half-mile sold for $385,000, $390,000, and $395,000 in the past year. That's strong evidence your appraisal is $30,000-$40,000 too high - which could mean $660-$880 in excess annual taxes at a 2.2% tax rate.
Comparable sales are the single most persuasive form of evidence in a property tax protest. Appraisal Review Boards weigh them heavily.
2. Your Value Jumped Significantly Without Any Improvements
Texas appraisal districts reassess property values every year. But if your appraised value spiked 15%, 20%, or more - and you haven't made any additions, renovations, or upgrades - the increase may not be justified.
What to look for:
- A year-over-year increase well above the local average
- No permits pulled on your property (additions, pools, major remodels)
- No change in your home's physical condition
Even in a rising market, the appraisal district may have overcorrected. Mass appraisal methods use algorithms and public data, but they can't account for the specific condition and characteristics of your home. A blanket increase across a neighborhood doesn't mean every home in that neighborhood actually increased in value by the same amount.
Note: If you have a homestead exemption, the 10% appraisal cap limits how much your assessed value can increase per year. But your appraised value (the market value the county assigns) can still jump by any amount - and protesting that number is how you keep it in check for future years.
3. Neighbors With Similar Homes Have Lower Appraised Values
Texas law requires property taxes to be assessed uniformly. If your home is substantially similar to a neighbor's but your appraised value is significantly higher, that's a sign of unequal appraisal - and it's one of the strongest grounds for a protest.
How to check: Your county appraisal district's website lets you search property records by address. Look up 5-10 homes on your street or in your subdivision that are similar to yours and compare appraised values.
What counts as "similar":
- Same number of bedrooms and bathrooms
- Similar square footage
- Same general age and construction quality
- Comparable lot size and location
If your home is appraised at $450,000 but three nearly identical homes on your block are appraised at $400,000-$415,000, you have a strong case for an unequal appraisal protest.
Important: In Texas, you can protest on the basis of unequal appraisal even if you think the county's market value estimate is accurate. If similar properties are being valued lower, your value should be, too.
4. Your Property Record Has Errors
Appraisal districts maintain detailed records for every property - square footage, number of rooms, lot size, year built, condition grade, and more. If any of these are wrong, your appraised value could be inflated.
Common errors that lead to overassessment:
- Wrong square footage - The most common error. Even a 100-200 sq ft discrepancy can add thousands to your value.
- Incorrect room count - An extra bedroom or bathroom that doesn't exist.
- Wrong lot size - Especially common after subdivisions or boundary changes.
- Overstated condition - Your home is graded "excellent" when it's actually "average" or "fair."
- Improvements that don't exist - A pool, garage conversion, or addition listed on your record that was never built.
- Wrong year built - An older home listed as newer can be appraised higher.
How to check: Pull up your property's detail page on your county appraisal district website. Review every field against what you know about your home. Pay special attention to the square footage, room counts, and any listed improvements.
If you find an error, document it. A correction alone may be enough to lower your value - and it strengthens any formal protest.
5. Your Local Market Has Softened but Your Value Went Up
Real estate markets don't always go up. If your area has experienced slower sales, declining prices, longer days on market, or increased inventory - but the appraisal district still raised your value - the appraisal may not reflect current market conditions.
Signs your local market has softened:
- Homes in your area are taking longer to sell (increased days on market)
- Listing prices are being reduced before sale
- Fewer buyers are competing for properties
- Recent sales are closing below asking price
- New construction in the area is increasing supply
Why this happens: Appraisal districts set values based on January 1 of the tax year, using data from the prior year. If the market shifted downward in the second half of the prior year, the January 1 snapshot may not fully capture the decline. And because mass appraisal methods apply broad adjustments across neighborhoods, individual properties in softening micro-markets can be missed.
This is especially relevant in 2026 for parts of Austin, Dallas, and San Antonio where certain submarkets have seen price corrections while others remain stable.
What to Do If You See These Signs
If one or more of these signs applies to your property, you likely have a strong case for a property tax protest. Here's the process:
- Check your Notice of Appraised Value when it arrives in April or May. This is your official appraisal for the year.
- File a protest by the deadline - typically May 15 or 30 days after you receive your notice, whichever is later. See your county's specific deadline.
- Gather your evidence - comparable sales, property record corrections, photos of condition issues, and neighbor appraisal comparisons.
- Attend the informal hearing - most protests are resolved here. Success rates range from 60-80%.
- Go to the ARB hearing if needed - if the informal hearing doesn't resolve it, you can present your case to the Appraisal Review Board.
You can file a protest yourself or hire a professional to handle it for you.
How Much Can You Save?
The savings depend on how much your value is reduced and your local tax rates, but here's what typical corrections look like:
| Overassessment Amount | Tax Rate | Annual Savings |
|---|---|---|
| $25,000 | 2.2% | $550 |
| $50,000 | 2.2% | $1,100 |
| $75,000 | 2.2% | $1,650 |
| $100,000 | 2.2% | $2,200 |
These savings recur every year. A $50,000 reduction saves you $5,500 over five years - and prevents that inflated value from compounding in future appraisals.
Frequently Asked Questions
How do I know if my home is overassessed?
Compare your appraised value to recent comparable sales, check for errors in your property record, and compare your appraisal to similar homes in your neighborhood. If any of the five signs above apply, your home is likely overassessed.
Can my property taxes go up even with a homestead exemption?
Yes. The homestead exemption reduces your taxable value, and the 10% appraisal cap limits annual increases to your assessed value. But if your appraised value is set too high, you're still building on an inflated base - which costs you more over time. Protesting keeps that base in check.
Is there a risk to protesting?
No. Texas law prohibits appraisal districts from raising your value as a result of a protest. The worst outcome is your value stays the same. Learn more about the protest process.
When is the deadline to protest?
The deadline is typically May 15 or 30 days after you receive your Notice of Appraised Value, whichever is later. Check your county's specific deadlines.
Should I protest every year?
Yes. Appraisal districts reassess values annually, and market conditions change. Protesting every year is the best way to ensure you're never overpaying.
Don't Overpay on Your Texas Property Taxes
If your home shows any of these signs of overassessment, a property tax protest can lower your appraisal - and your tax bill. Ballard Property Tax Protest handles the entire process for Texas homeowners, from filing to hearings.
No reduction, no fee.