How to Read and Understand Your Property Tax Notice of Appraised Value

 Here’s what you need to know about understanding your property tax notice of appraised value:

• The Property Tax Notice of Appraised Value is a notice from your Appraisal District stating your property’s value for tax purposes.
• Your appraisal notice typically includes key information such as property details, appraised value, taxing entities, exemptions, and how and when to protest.
• Understanding your notice allows you to understand your taxes, check for errors, and protest for a correction in value.
• If you disagree with your appraised value, you may protest to potentially reduce the value and lower your tax bill as a result.
• Gill, Denson & Company is experienced in assisting with property tax protests, successfully reducing over 80% of our clients’ tax appraisals last year.

What Is a Property Tax Notice of Appraised Value?

Every year, Texas homeowners receive a Property Tax Notice of Appraised Value in the mail, often around springtime. The Appraisal District determines property values within your county for tax purposes, and this notice is their official opinion of your property’s worth as of January 1st of the current year.

Now, the notice is not your actual property tax bill. The appraised value stated in this notice is the figure that your local taxing entities will use to determine how much property tax you owe. The notice informs you of the assigned appraised value and gives you the opportunity to review and potentially protest that value if you believe it’s inaccurate or unfair.

Key Sections of the Notice

Understanding the Notice of Appraised Value is the first crucial step in managing your property taxes and potentially lowering your annual bill. Let’s break down the key components:

• A. Property Details
• B. Appraised Value
• C. Market Value
• D. Taxing Entities
• E. Existing Exemptions
• F. Deadline to Protest
• G. Contact Information & How to Protest

A. Property Details

The top section of your notice will contain identifying details about your property. It’s essential to carefully review this information for accuracy.  Key items to check include:

• Property Address: Is your address correct?
• Legal Description: This is a formal description of your property, often referencing lot and block numbers. Ensure it matches your property records.
• Account Number/Property ID: This is your unique property identifier within the Appraisal District’s system.
• Acreage/Lot Size: Is the size of your land listed correctly?
• Property Type: Is your property correctly classified as residential, commercial, or another type if applicable?

Why is accuracy so important here? Errors in these details, while seemingly minor, can indicate underlying issues with your property’s assessment and ultimately impact its valuation.

B. Appraised Value

The appraised value is arguably the most important number on the entire notice. It’s the Appraisal District’s estimate of your property’s value as of January 1st of the current year. This is the value, minus any applicable exemptions, that will be used to calculate your property taxes. Note that the county often uses the terms “appraised” and “assessed” synonymously.

Here is a great explanation of these terms, and below are a few examples of the larger Texas counties’ terminology use:

Look for headings like “Appraised Value,” “Assessed Value,” “Current Value,” or similar. Your notice may also show the “Previous Year’s Value” for comparison. It’s normal for appraised values to fluctuate from year to year, reflecting changes in the real estate market, property improvements, and other factors. A significant jump in appraised value warrants closer attention.

C. Market Value (If Listed)

Some appraisal notices may also list a separate Market Value. This is the Appraisal District’s estimate of what your property could realistically sell for on the open market. The “Appraised Value” is often intended to reflect market value but may have certain legal limitations or adjustments applied based on state law. If your appraised value is higher than the market value, there may (but not always) be an issue with your valuation. Remember, it’s the Appraised Value that is used for taxation.

D. Taxing Entities

This section lists all the taxing entities that have the authority to levy property taxes on your property within your area. Common examples include:

• School District: The largest portion of most property tax bills.
• County: For county services.
• City: If your property is within city limits.
• Special Districts: These can include Municipal Utility Districts (MUDs), Public Improvement Districts (PIDs), water districts, or other entities providing specific services.

Each of these taxing entities sets its own tax rate. These individual tax rates are then applied to your taxable value (your appraised value after any exemptions) to calculate your total property tax bill. Tax rates are set and voted upon by local jurisdictions and cannot be protested.

E. Existing Exemptions

This section is incredibly important for savings! Here, you’ll see a list of any property tax exemptions already applied to your property for the current tax year. Common exemptions listed might include the Homestead Exemption, 65 Plus Homestead Exemption, or Disability Exemptions. Exemptions are not automatic – you need to apply for these separately.

Carefully review this section. If you have been approved for exemptions that are not reflected on your Notice of Appraised Value, this needs to be corrected. (For more information on exemptions, see our previous blog post.)

F. Deadline to Protest

The deadline to file a protest will be clearly stated on your notice. If you disagree with the appraised value, you must submit your protest by this date. Missing the deadline means you may lose your formal opportunity to challenge your appraised value for this tax year. Deadlines are typically on May 15th, but verify the exact date on your notice.

G. Contact Information & How to Protest

Your notice will generally provide basic instructions on how to file a protest. It will also include essential contact information for your Appraisal District, such as their phone number, physical address, and website. Some districts allow online protest filings, but all of them must accept certified mail protests.

The Appraisal District’s website is a valuable resource, offering more detailed information about the protest process, deadlines, forms, and evidence you might need to present in your case.

Why Understanding Your Notice Matters

Taking the time to carefully read and understand your Property Tax Notice of Appraised Value is incredibly valuable as a homeowner. You can gain a better understanding of how your property taxes are determined and have the opportunity to correct any errors and protest your assessment. Don’t just pay the bill when it comes in without verifying the details. You could be missing out on significant tax savings.

What to Do If You Disagree with Your Appraised Value

If, after reviewing your notice, you believe your appraised value is too high, don’t panic! You have the right to protest your property value. Common reasons for protesting include:

• Overvaluation: You believe the appraised value is higher than your property’s actual market value. Perhaps recent comparable sales in your area are lower.
• Unequal Appraisal: You believe your property is appraised higher than similar properties in your neighborhood without justifiable differences.
• Factual Errors: You’ve identified inaccuracies in the property details section of your notice that could affect the valuation.

Remember, receiving your Notice of Appraised Value is just the beginning of the property tax process. Understanding it is your first step towards potential savings.

Feeling overwhelmed by your appraisal notice? You don’t have to go through this process alone.  The team at Gill, Denson & Company are Texas property tax experts who specialize in helping homeowners like you understand their appraisal notices and, when necessary, file property tax protests. Last year, we successfully helped over 80% of our clients to lower their property tax bill.

Get started on your property tax protest for 2025 now.