Property taxes in Texas can sneak up on homeowners—especially when appraised values jump and exemptions are missed. Whether you own a home in Houston or anywhere in the Lone Star State, lowering your Texas property tax bill starts with knowing your rights and the available tools.
Understand How Property Taxes Are Calculated
Texas property taxes are based on the assessed value of your home as determined by your local County Appraisal District (CAD). This is not the same as the market value or what a buyer is willing to pay.
Your tax bill is a combination of your home's assessed value multiplied by the local tax rate, which varies by county, city, and school district. If your home’s appraised value seems high, you have the right to challenge it.
File a Property Tax Protest
If you believe your assessment is too high, you can file a property tax protest—most deadlines are May 15 or 30 days after the notice was mailed. Here’s how:
Step 1: Visit your local CAD website to start your protest online. Here are the CAD links for the Greater Houston area:
Step 2: Gather supporting documents such as:
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Recent appraisals
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MLS sales comps (ask your agent)
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Photos of needed repairs or damages
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Contractor quotes
Step 3: Be prepared for an informal hearing or an Appraisal Review Board (ARB) hearing.
Tip: Tools like O'Connor & Associates or PropertyTax.io help analyze comps and guide your protest.
Take Advantage of the Homestead Exemption
If you own and live in your home as your primary residence, you’re eligible for a homestead exemption—a discount on your home's taxable value.
For example, the City of Houston offers a 20% homestead exemption, and school districts typically offer $100,000 in exemptions.
File once through your CAD website. Be sure your driver’s license matches the home’s address.
More on this in my blog: First-Time Buyer Tips in Houston.
Explore Other Property Tax Exemptions
Besides homestead, Texas offers other exemptions:
Over 65 or Disabled Person Exemption
Reduces school taxes significantly. You can also opt for a tax ceiling (freeze).
Disabled Veteran Exemption
Exemption amounts vary based on disability rating—up to 100% for full disability.
Agricultural or Timber (AG) Use Exemption
If your land is used for farming or ranching, you may qualify. This is common in Waller County, and in rural parts of the Houston metro.
Surviving Spouse Exemptions
Certain surviving spouses of veterans, first responders, or seniors can also qualify.
Always double-check with your CAD office and tax advisor.
Review Your Property Tax Bill for Errors
It’s more common than you think.
CADs sometimes:
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Misreport square footage
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Include old improvements that were removed
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Mislabel property use (e.g., residential vs. commercial)
Disputing these errors can lower your bill. For instance, one of my clients in Garden Oaks found her garage was double-counted. After correction, she saved $1,200.
Need help? Check out my post: What to Know Before Selling a Houston Home.
Hire a Pro—If It’s Worth It
Tax consultants typically work on contingency—they only get paid if they reduce your bill. Fees range from 30–50% of the savings.
This can be helpful if:
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You own multiple properties
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You’re too busy to prepare evidence
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Your case is complex (i.e., commercial or AG land)
Just make sure they’re licensed and have a good success record.
Plan Ahead with Tax Caps and Renovation Strategy
Once your home gets a homestead exemption, there's a 10% cap on yearly value increases. This cap protects you when market values rise fast.
However, major renovations (like adding a second story or pool) can re-trigger higher assessments. It's smart to time upgrades after you've locked in a capped year.
Check out: Hidden Fees That Could Derail Your Home Purchase.
Bonus Tip: Remove Income-Producing Structures
In some counties, trailers, guest houses, or rental units can increase your assessed value. One seller in East Houston removed a mobile home before their appraisal and shaved $500 off their taxes.
Confirm with your CAD what counts as a taxable improvement.
Final Thoughts
Lowering your Texas property taxes isn’t just about saving money—it’s about knowing your options and acting early. Protest values, file exemptions, check for mistakes, and plan smart.
If you're not sure where to start or need a CMA (Comparative Market Analysis) for protest evidence, I’m here to help.
👉 Reach out to Raquel Refuerzo for guidance—especially if you're in the Houston area and want to make your next move tax-savvy.
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