Texas property taxes are some of the highest in the country, and many homeowners are feeling the pinch. If you own a home or other property in Texas, you may be able to reduce your tax bill by filing a property tax protest, which is the process by which homeowners can challenge the assessed value of their property.
In Texas, property taxes are calculated based on the property's assessed value, which is determined by the local appraisal district and is supposed to reflect its market value. Homeowners have the legal right to submit a property tax protest if they believe that their property's assessed value is too high.
Successfully challenging a property's assessed value through a property tax protest can result in a lower property tax bill, potentially saving the property owner hundreds or even thousands of dollars per year. Keep reading to learn about the benefits of filing a property tax protest each year, from the apparent to the less expected.
The most obvious benefit of filing a property tax protest is the potential for current tax savings. Filing a property tax protest can help ensure that your property is assessed accurately and fairly.
When the assessed value of your property is too high, you are paying more than your fair share of property taxes. However, if the assessed value of your home is lowered as a result of your protest, your property tax bill for this year will also be reduced.
Under Texas law, there is a 10% cap on the annual increase in the appraised value of a homestead property, which is the owner's primary residence. This means that the assessed value of a homestead property can increase by a maximum of 10% per year, regardless of the actual increase in the market value of the property.
For example, suppose the assessed value of a homestead property is $200,000 in one year. In that case, the most the assessed value can increase the following year is $20,000 (10% of $200,000), regardless of how much the property's market value rises.
The 10% cap is intended to provide some protection to homeowners from significant property tax increases due to rapidly rising property values. However, it also means that a successful property tax protest today can lead to significant savings in the future, since the maximum appraised value of your home is based on the previous year's value.
Even though a property tax protest requires you to argue that your home should have a lower market value for tax purposes, a successful protest can actually help improve your home's appeal in the local real estate market.
While it may seem counter-intuitive, a property tax protest can potentially raise a home's resale value by ensuring that the property is not over-assessed, which can result in an unnecessarily high property tax bill. By challenging a property's assessed value and potentially reducing the homeowner's property tax obligations, filing a property tax protest can make your property more attractive to potential buyers, causing it to be more competitive.
A lower property tax bill can also make the property more affordable for potential buyers, as property taxes are a recurring expense that adds to the total cost of owning the property. Reducing this recurring expense makes the property more affordable for potential buyers, which can increase its appeal in the local real estate market.
Even though the benefits are undeniable, filing a property tax protest may seem like an overwhelming process. Luckily, Texas law allows property owners to be represented by a professional throughout the property tax protest process.
The team of experts at Watchtower Protest has years of experience helping people like you lower their property taxes. If you partner with us, we will take care of everything for you, from filing your paperwork to arguing at your Appraisal Review Board Hearing. We do everything we can to make it as easy as possible for you to protest your property taxes.
Plus, our services are always 100% risk-free. We only get paid if we successfully lower your property taxes. So why not sign up today? There's nothing to lose but an inflated property tax bill.
Property tax in Montgomery County - a property tax consultant can help you manage your tax obligations, exemptions, deductions, and how to challenge your assessment.