Does Protesting My Property Taxes Actually Lower My Tax Bill?

Here’s what you need to know about getting a lower tax bill by protesting property taxes:

• Yes, it is worth it to protest your property taxes for a lower tax bill.
• Any change to the CAD-appraised value or applicable exemptions can affect the taxable value, which affects your overall property tax bill.
• Even a $50,000 reduction in property value can save you an average of $815 on your annual bill.
• Your property tax bill savings can compound year after year, especially if you protest annually.
• Get started with the property tax experts at Gill, Denson & Company to increase your chances of a successful protest.

Is It Really Worth It to Protest Property Taxes in Texas?

Texas has some of the highest property tax rates in the country. Homeowners can offset this in a number of ways, including by protesting the property’s county-assessed taxable value. But you may be asking yourself if it’s worth it. Protesting seems like a lot of work, with no guarantee of a reduction in your tax burden. Our short answer is yes, it is worth it to protest because doing so can mean a lower tax bill for you.

If you never protest your property taxes, your tax bill could continue to increase year after year. The amount you can save will depend on your circumstances and the strength of the evidence you present to the county. Working with a professional like Gill, Denson & Company reduces your stress and improves your chances of a significant reduction.

What Goes Into Your Property Tax Bill

Before we get into how much you can save by protesting, let’s look at the formula for calculating your property taxes. We’ve simplified the formula here to better explain it. First, your taxable value:

CAD Appraised Value – Applicable Exemptions = Taxable Value

Then, you can determine how much your bill will be:

Taxable Value X Total Tax Rate = Your Annual Property Tax Bill

Any reduction in your CAD-appraised value or an increase in your exemptions will directly lower the taxable value. That, in turn, directly gives you a lower tax bill. The one figure you do not have control or influence over is the total tax rate, set by local tax entities. So, you can imagine how even small corrections here and there can add up to bigger savings.

How a Successful Protest Translates into Real Savings

Now, we’ll look at two examples of successful protests to illustrate how it can lower your tax bill. The first is based on a scenario where a property was overvalued and needs a correction. It’s important to note that even if your appraised value went down, your bill could still be higher for other reasons. The second example below covers such a scenario, like a missed or incorrect exemption.

Scenario 1: Overvaluation Correction

This is a strong protest when the Appraisal District’s market value assessment is too high compared to the actual market value. Sufficient evidence of the overvaluation can lead to a reduced amount.

Savings Example: 

Original Appraised Value: $500,000

Value After Successful Protest: $450,000

Impact on Your Bill: If your total tax rate is 1.63% (the average Texas rate, for example), a $50,000 reduction in taxable value saves you $815 on your annual bill.

Scenario 2: Exemption Correction

Fixing missed or incorrectly applied exemptions can significantly lower your property’s taxable value. It is also fairly easy and concrete evidence to provide to the county in your protest.

Savings Example:

Appraised Value: $500,000

Missed Homestead Exemption: $100,000

Impact on Your Bill: For the school portion of your taxes, the value drops by $100,000, leading to substantial savings even if the market value doesn’t change. This would mean $1,630 in savings.

Protest Yearly to Compound Your Savings

While a single protest’s savings might seem small, especially if you only receive a small reduction, you can compound these savings year after year. A reduction today continues to save money in future years as long as the market value doesn’t rebound dramatically or rates don’t skyrocket. You’ll only pay our fee for the current year’s tax savings our services bring you!

If you protest your property taxes every year, you can potentially find even more savings as certain factors change. For instance, if you become eligible for another exemption or your property has fire damage that isn’t accounted for on your next bill. Don’t accept your property tax bill as is, and don’t settle for just one year of savings.

Increase Your Chance for Success with a Professional

Going back to the original question, is it worth it to protest property taxes for a lower tax bill? Yes, especially if you work with a professional team like the one at Gill, Denson & Company. Working with a pro ensures you don’t have to do the legwork to achieve the best possible reduction. You can save yourself significant stress and time, in addition to money.

Our custom strategies are designed to maximize your chances of a tangible bill reduction. We don’t just look for overvaluation and exemptions; we find every available option for protest, including unequal appraisal, physical condition, and more. We gather all the evidence and present a strong case to reduce your taxable value. And you won’t pay anything unless we achieve a reduction for you.

If you think you might be overpaying your property taxes, don’t hesitate to reach out to us for help achieving a lower tax bill. Get started with Gill, Denson & Company today.